JAKKS Pacific (JAKK) Downgraded by Zacks Investment Research

Zacks Investment Research downgraded shares of JAKKS Pacific (NASDAQ:JAKK) from a hold rating to a sell rating in a research report released on Wednesday morning, 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.”

Other equities analysts have also issued research reports about the company. ValuEngine upgraded JAKKS Pacific from a sell rating to a hold rating in a research note on Friday, May 10th. DA Davidson lowered their price objective on JAKKS Pacific to $1.50 and set a neutral rating on the stock in a research note on Thursday, March 14th.

JAKKS Pacific stock opened at $0.85 on Wednesday. JAKKS Pacific has a one year low of $0.72 and a one year high of $3.33. The company has a debt-to-equity ratio of 7.11, a quick ratio of 1.27 and a current ratio of 1.67. The firm has a market cap of $20.62 million, a price-to-earnings ratio of -0.68 and a beta of 1.26.

JAKKS Pacific (NASDAQ:JAKK) last posted its quarterly earnings data on Thursday, May 9th. The company reported ($1.00) EPS for the quarter, missing the Zacks’ consensus estimate of ($0.56) by ($0.44). JAKKS Pacific had a negative return on equity of 77.24% and a negative net margin of 6.47%. The company had revenue of $70.83 million for the quarter, compared to the consensus estimate of $78.65 million. Equities research analysts expect that JAKKS Pacific will post -0.93 earnings per share for the current fiscal year.

A number of institutional investors have recently bought and sold shares of the business. Renaissance Technologies LLC increased 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 worth $2,142,000 after acquiring an additional 17,030 shares during the period. Vanguard Group Inc increased 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 worth $2,523,000 after acquiring an additional 97,196 shares during the period. Vanguard Group Inc. increased 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 worth $2,523,000 after acquiring an additional 97,196 shares during the period. Citigroup Inc. increased its stake in JAKKS Pacific by 81.2% during the 4th quarter. Citigroup Inc. now owns 146,282 shares of the company’s stock worth $215,000 after acquiring an additional 65,543 shares during the period. Finally, Virtu Financial LLC bought a new position in JAKKS Pacific during the 1st quarter worth $37,000. Hedge funds and other institutional investors own 42.56% 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.

Further Reading: What is the Quick Ratio?

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