JAKKS Pacific (JAKK) Downgraded by Zacks Investment Research to Sell

Zacks Investment Research downgraded shares of JAKKS Pacific (NASDAQ:JAKK) from a buy rating to a sell rating in a research note released on Wednesday, Zacks.com reports.

According to Zacks, “Shares of JAKKS Pacific have underperformed the industry in the past year. The trend is likely to continue in the near term on lower-than-expected results in the first quarter of 2019. A challenging industry scenario for traditional toymakers and the Toys ‘R’ Us liquidation have been affecting JAKKS Pacific’s results for quite some time. Moreover, the company faces challenges in forms of rising costs, competition from alternative modes of entertainment and age compression. However, it is banking on various partnerships and product launches to drive long-term growth. To achieve its long-term growth, JAKKS Pacific is likely to consistently bank on a solid base of evergreen properties, categories, partner brands and licenses by using promotional opportunities. Also, acquisitions, solid international footprint, focus on innovation, and collaborations with popular brands and movie franchisees should boost its top line.”

JAKK has been the topic of a number of other research reports. DA Davidson dropped their price target on shares of JAKKS Pacific to $1.50 and set a neutral rating on the stock in a research note on Thursday, March 14th. ValuEngine cut shares of JAKKS Pacific from a hold rating to a sell rating in a research note on Wednesday, May 1st.

Shares of JAKKS Pacific stock opened at $0.75 on Wednesday. JAKKS Pacific has a 1 year low of $0.72 and a 1 year high of $3.33. The company has a quick ratio of 1.27, a current ratio of 1.67 and a debt-to-equity ratio of 7.11.

JAKKS Pacific (NASDAQ:JAKK) last announced its quarterly earnings results on Thursday, May 9th. The company reported ($1.00) earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of ($0.56) by ($0.44). The firm had revenue of $70.83 million during the quarter, compared to the consensus estimate of $78.65 million. JAKKS Pacific had a negative return on equity of 77.24% and a negative net margin of 6.47%. On average, equities analysts anticipate that JAKKS Pacific will post -0.69 earnings per share for the current year.

A number of institutional investors and hedge funds have recently bought and sold shares of JAKK. Virtu Financial LLC bought a new position in JAKKS Pacific during the 1st quarter valued at about $37,000. Citigroup Inc. lifted its stake in JAKKS Pacific by 81.2% during the 4th quarter. Citigroup Inc. now owns 146,282 shares of the company’s stock valued at $215,000 after acquiring an additional 65,543 shares during the period. Renaissance Technologies LLC lifted its stake in JAKKS Pacific by 0.8% during the 1st quarter. Renaissance Technologies LLC now owns 2,121,230 shares of the company’s stock valued at $2,142,000 after acquiring an additional 17,030 shares during the period. Vanguard Group Inc lifted its stake in JAKKS Pacific by 10.9% during the 3rd quarter. Vanguard Group Inc now owns 989,352 shares of the company’s stock valued at $2,523,000 after acquiring an additional 97,196 shares during the period. Finally, Vanguard Group Inc. lifted its stake in JAKKS Pacific by 10.9% during the 3rd quarter. Vanguard Group Inc. now owns 989,352 shares of the company’s stock valued at $2,523,000 after acquiring an additional 97,196 shares during the period. Institutional investors and hedge funds own 42.10% of the company’s stock.

JAKKS Pacific Company Profile

JAKKS Pacific, Inc develops, produces, and markets consumer products worldwide. The company operates through three segments: U.S. and Canada, International, and Halloween. It offers action figures and accessories, such as licensed characters; toy vehicles and accessories; dolls and accessories, including small, large, fashion, and baby dolls based on licenses, as well as infant and pre-school products; private label products; and foot-to-floor ride-on products, inflatable environments, tents, and wagons.

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