JAKKS Pacific (NASDAQ:JAKK) Cut to Buy at Wall Street Zen

Key Points

• Wall Street Zen downgraded JAKKS Pacific from “strong buy” to “buy,” while the broader analyst consensus remains “hold” with an average price target of $57.
• JAKKS shares opened at $30.52, near their 12-month high of $32.16, after the company reported quarterly EPS of $2.68 and revenue of $254.22 million—both above analyst expectations.
• Institutional ownership stands at 44.38%, with several investment firms increasing their positions or initiating new stakes in the toy and consumer-products company.

JAKKS Pacific (NASDAQ:JAKK - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a note issued to investors on Saturday, Wall Street Zen reports.

A number of other analysts have also weighed in on JAKK. Maxim Group upped their price objective on shares of JAKKS Pacific from $27.00 to $57.00 and gave the stock a "buy" rating in a research note on Friday. Weiss Ratings reissued a "hold (c)" rating on shares of JAKKS Pacific in a research report on Friday, September 11th. Finally, Zacks Research upgraded shares of JAKKS Pacific from a "strong sell" rating to a "hold" rating in a report on Monday, October 12th. One research analyst has rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, JAKKS Pacific presently has an average rating of "Hold" and an average target price of $57.00.

JAKKS Pacific Trading Up 3.3%

Shares of JAKK stock opened at $30.52 on Friday. JAKKS Pacific has a twelve month low of $14.86 and a twelve month high of $32.16. The stock has a market capitalization of $349.15 million, a price-to-earnings ratio of 17.48 and a beta of 1.32. The stock has a fifty day simple moving average of $25.98 and a two-hundred day simple moving average of $24.05.

JAKKS Pacific (NASDAQ:JAKK - Get Free Report) last announced its quarterly earnings results on Thursday, October 22nd. The company reported $2.68 EPS for the quarter, beating the consensus estimate of $2.34 by $0.34. The firm had revenue of $254.22 million for the quarter, compared to analyst estimates of $226.58 million. JAKKS Pacific had a return on equity of 8.43% and a net margin of 4.17%. Research analysts predict that JAKKS Pacific will post 1.38 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Bank of New York Mellon Corp bought a new position in shares of JAKKS Pacific in the 2nd quarter worth $988,000. Donald Smith & CO. Inc. purchased a new stake in shares of JAKKS Pacific during the 2nd quarter worth $4,784,000. Gamco Investors INC. ET AL lifted its stake in shares of JAKKS Pacific by 79.0% during the 1st quarter. Gamco Investors INC. ET AL now owns 104,983 shares of the company's stock worth $2,091,000 after purchasing an additional 46,322 shares during the last quarter. Gabelli Funds LLC boosted its position in JAKKS Pacific by 46.1% during the first quarter. Gabelli Funds LLC now owns 188,492 shares of the company's stock valued at $3,755,000 after purchasing an additional 59,473 shares in the last quarter. Finally, Lazard Asset Management LLC bought a new stake in JAKKS Pacific during the first quarter valued at about $441,000. 44.38% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting JAKKS Pacific

Here are the key news stories impacting JAKKS Pacific this week:

• Positive Sentiment: Q3 earnings and revenue exceeded expectations. JAKKS reported adjusted earnings of $2.68 per share, ahead of analyst estimates ranging from $2.34 to $2.54 and up from $1.80 a year earlier. Revenue reached $254.22 million, topping the $226.58 million consensus estimate and increasing 20% year over year. JAKKS Pacific Reports Third Quarter 2026 Financial Results
• Positive Sentiment: The board approved a quarterly cash dividend of $0.25 per share. The payout equates to $1.00 annually and a reported yield of approximately 3.3%, potentially making the stock more attractive to income-focused investors. The dividend is scheduled for payment on December 28 to eligible shareholders. Quarterly Dividend Announcement
• Positive Sentiment: Upcoming entertainment and retail opportunities may support future sales. JAKKS highlighted a 2027 product slate that includes Sonic the Hedgehog 4, while Toys “R” Us is reportedly expanding with 120 stores. New Buddy the Elf and Jovie dolls are also scheduled to arrive at Walmart, expanding product visibility and distribution. 2027 Product Slate and Retail Expansion
• Neutral Sentiment: Despite the earnings beat, JAKKS reported a relatively modest 2.77% net margin and 4.33% return on equity, indicating that profitability remains limited and that sustained execution will be important.

JAKKS Pacific Company Profile

JAKKS Pacific, Inc is a toy and consumer products company that develops, designs, produces and markets toys, games, seasonal products and related merchandise. Its product portfolio includes action figures, dolls, roleplay toys, dress-up and costume products, plush items, outdoor and sports toys, games, and other products for children and families.

The company markets products under its own brands, including Maui, Disguise and Moose Mountain, as well as through licensing and strategic partnerships with entertainment and consumer brands.

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