Hasbro Faces Challenges Amidst Market Shifts
Company Overview
Hasbro, Inc. (HAS), based in Rhode Island, is a major player in the toy and game industry. With a market capitalization of $7.9 billion, it offers a diverse range of products, including traditional toys, digital games, and popular licensed items. Its well-known brands include Magic: The Gathering, Nerf, My Little Pony, Transformers, Play-Doh, Monopoly, Baby Alive, Dungeons & Dragons, Power Rangers, Peppa Pig, and PJ Masks.
Companies with valuations under $10 billion, like Hasbro, belong to the “mid-cap” stock category. Hasbro enhances global consumer experiences through its consumer products, entertainment divisions like eOne, and gaming partnerships led by Wizards of the Coast. Its fantasy franchises, particularly Magic: The Gathering and Dungeons & Dragons, are especially significant to its reputation.
Stock Performance Analysis
Recently, Hasbro has seen a decline in its stock value, dropping 22.8% from a 52-week high of $73.46 on October 1. The company has experienced a further decline of 21.4% in the last three months, contrasting sharply with the Consumer Discretionary Select Sector SPDR Fund’s (XLY) impressive 14.4% increase in the same period.
Looking at a broader timeline, Hasbro’s stock has increased only 11.2% over the past year, falling short of XLY’s 27% return. Over the last six months, Hasbro shares are down 2.5%, significantly lagging behind XLY’s nearly 24.6% increase.
The stock’s bearish trend is evident, with Hasbro trading below its 200-day moving average since mid-December and its 50-day moving average since late October.
Recent Earnings Report
On October 24, Hasbro’s shares plunged 6% following its Q3 revenue report, which registered $1.28 billion—a decrease of 14.8% compared to the same quarter last year. This reduction was attributed to a drop in revenue across all operational segments. However, there was a silver lining: adjusted earnings per share (EPS) rose 5.5% year-over-year to $1.73, exceeding the analysts’ average estimate of $1.31 per share.
In comparison, competitors like Mattel, Inc. (MAT) have seen a decline of 5.4% over the past year, yet Hasbro has underperformed relative to Mattel’s 10.1% increase in the same six-month period.
Analyst Outlook
Despite these challenges, analysts express moderate optimism regarding Hasbro’s future. The stock currently holds a “Moderate Buy” consensus rating from 11 analysts, with a mean price target of $79.73 indicating a potential upside of 40.6% from current levels.
The author, Neharika Jain, did not hold any direct or indirect positions in the securities mentioned in this article. All data and information are for informational purposes only. For further details, please view the Barchart Disclosure Policy here.
The views expressed in this piece belong solely to the author and do not necessarily reflect those of Nasdaq, Inc.
