Hasbro Inc. (NASDAQ: HAS) Seen Running Too Hot, Let’s Look At This More Closely


The Vanguard Group, Inc. recently announced the acquisition of new stake in Hasbro Inc. (NASDAQ:HAS). The institutional investor has increased its shareholding in the Consumer Cyclical company by 0.08% to 15.49 million shares with purchase of 11892.0 shares. This fresh investment now brings its stake to 11.31% valued currently at $1.14 billion. In addition, SSgA Funds Management, Inc. raised its holdings by 0.22 million to 5.54 million shares. And Principal Global Investors LLC has lifted its position by 5.22% or 0.19 million shares – to 3.84 million shares.

With over 0.65 million Hasbro Inc. (HAS) shares trading Monday and a closing price of $73.61 on the day, the dollar volume was approximately $47.76 million. The shares have shown a negative weekly performance of -1.64% and its price on 07/13/20 lost nearly -0.77%. Currently, there are 137.15M common shares owned by the public and among those 126.33M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 18 analysts who have offered their price forecasts for HAS have a consensus price objective of $87.44. The analysts have set the share’s price value over the next 12 months at a high of $110.00 and a low of $70.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Hasbro Inc. stock is 2.10 for the next 12 months. The average price target is 16.16% above its last price level and an upside to the estimated low will see the stock lose -5.16% over that period. But an upside of 33.08% will see the stock hit the forecast high price target while mean target price for the stock is $87.50.

Insiders at the company have transacted a total of 35 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 16 of these insider trades were purchases, accounting for 68,682 shares. Insider sales of the common stock occurred on 19 occasions, with total insider shares sold totaling 22,467 shares.

The top 3 mutual fund holders in Hasbro Inc. are American Funds Investment Company, Vanguard Total Stock Market Index, and Vanguard Mid Cap Index Fund. American Funds Investment Company owns 6.58 million shares of the company’s stock, all valued at over $483.43 million. The company sold -1.35 million shares recently to bring their total holdings to about 4.80% of the shares outstanding. Vanguard Total Stock Market Index sold 13280.0 shares to see its total holdings shrink to 3.72 million shares valued at over $273.53 million and representing 2.72% of the shares outstanding. Vanguard Mid Cap Index Fund bought 19447.0 shares to bring its total holdings to over 3.36 million shares at a value of $246.83 million. Vanguard Mid Cap Index Fund now owns shares totaling to 2.45% of the shares outstanding.

Shares of Hasbro Inc. (NASDAQ: HAS) opened at $74.999, up $0.82 from a prior closing price of $74.18. However, the script later closed the day at $73.61, down -0.77%. The company’s stock has a 5-day price change of -1.64% and -0.82% over the past three months. HAS shares are trading -30.30% year to date (YTD), with the 12-month market performance down to -32.63% lower. It has a 12-month low price of $41.33 and touched a high of $126.87 over the same period. Currently, 0.65 million shares have been traded, compared to an average intraday trading volume of 1.18 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -0.14%, 2.05%, and -16.23% respectively.

Institutional ownership of Hasbro Inc. (NASDAQ: HAS) shares accounts for 84.30% of the company’s 137.15M shares outstanding. Mutual fund holders own 33.80%, while other institutional holders and individual stakeholders account for 49.60% and 11.95% respectively.

It has a market capitalization of $9.72B and a beta (3y monthly) value of 0.94. The stock’s trailing 12-month PE ratio is 22.44, while the earnings-per-share (ttm) stands at $3.28. The company has a PEG of 2.13 and a Quick Ratio of 1.70 with the debt-to-equity ratio at 1.92. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.12% over the week and 3.45% over the month.

Analysts forecast that Hasbro Inc. (HAS) will achieve an EPS of $0.23 for the current quarter, $1.61 for the next quarter and $4.42 for 2021. The lowest estimate earnings-per-share for the quarter is $0.01 while analysts give the company a high EPS estimate of $0.42. Comparatively, EPS for the current quarter was $0.78 a year ago. Earnings per share for the fiscal year are expected to increase by 96.80%, and 27.96% over the next financial year. EPS should grow at an annualized rate of 10.55% over the next five years, compared to 4.80% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 18 brokerage firm advisors rate Hasbro Inc. (HAS) as a “Moderate Buy” at a consensus score of 2.10. Specifically, 11 Wall Street analysts polled rate the stock as a buy, while 6 of the 18 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the HAS, a number of firms have released research notes about the stock. Consumer Edge Research stated their Equal Weight rating for the stock in a research note on June 09, 2020, with the firm’s price target at $80. Wolfe Research coverage for the Hasbro Inc. (HAS) stock in a research note released on April 17, 2020 offered a Outperform rating with a price target of $87. Berenberg was of a view on April 16, 2020 that the stock is Buy, while BofA/Merrill gave the stock Neutral rating on January 29, 2020, issuing a price target of $117. JP Morgan on their part issued Neutral rating on January 27, 2020.


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