Hasbro (NASDAQ:HAS) Sees Unusually-High Trading Volume on Better-Than-Expected Earnings

Key Points

• Hasbro shares jumped on heavy volume after the company reported better-than-expected quarterly results, with the stock trading well above its prior close. Trading volume was also notably higher than the previous session.
• The company beat expectations with $1.28 EPS versus the $1.17 consensus and $1.14 billion in revenue versus the expected $1.07 billion, while sales rose 16.2% year over year.
• Hasbro also raised its full-year revenue and profit outlook, with strength in Wizards of the Coast and Magic: The Gathering helping drive the improved guidance.

Hasbro, Inc. (NASDAQ:HAS - Get Free Report) shares saw unusually-high trading volume on Tuesday after the company announced better than expected quarterly earnings. Approximately 2,216,573 shares were traded during mid-day trading, an increase of 13% from the previous session's volume of 1,964,532 shares.The stock last traded at $90.4580 and had previously closed at $81.59.

The company reported $1.28 EPS for the quarter, topping analysts' consensus estimates of $1.17 by $0.11. Hasbro had a negative net margin of 4.62% and a positive return on equity of 174.64%. The company had revenue of $1.14 billion for the quarter, compared to analysts' expectations of $1.07 billion. During the same quarter in the previous year, the firm posted $1.30 EPS. Hasbro's revenue was up 16.2% on a year-over-year basis.

Hasbro Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, June 11th. Shareholders of record on Monday, June 1st were issued a dividend of $0.70 per share. The ex-dividend date of this dividend was Monday, June 1st. This represents a $2.80 annualized dividend and a yield of 3.1%. Hasbro's dividend payout ratio is -168.67%.

Trending Headlines about Hasbro

Here are the key news stories impacting Hasbro this week:

• Positive Sentiment: Hasbro beat second-quarter earnings expectations, reporting $1.28 EPS versus the $1.17 consensus, while revenue rose 16.2% year over year, signaling stronger-than-expected operating performance. Article Title
• Positive Sentiment: The company raised its full-year revenue and profit forecasts, which suggests management sees continued momentum in its core businesses and can help support a higher valuation. Article Title
• Positive Sentiment: Results were helped by strength in Wizards of the Coast and digital gaming, especially Magic: The Gathering, showing that Hasbro’s higher-margin franchises are still driving growth. Article Title
• Neutral Sentiment: Hasbro also reported a negative net margin, so investors may still want to watch whether improved sales translate into more durable profitability over time. Article Title
• Neutral Sentiment: While EPS was slightly below last year’s level, the market is likely focusing more on the beat-and-raise quarter than the modest year-over-year EPS decline. Article Title

Wall Street Analysts Forecast Growth

HAS has been the subject of several analyst reports. Jefferies Financial Group cut their price objective on shares of Hasbro from $120.00 to $110.00 and set a "buy" rating for the company in a report on Thursday. Wells Fargo & Company decreased their price objective on Hasbro from $92.00 to $85.00 and set an "equal weight" rating on the stock in a research note on Tuesday, June 9th. DA Davidson restated a "neutral" rating and issued a $100.00 target price on shares of Hasbro in a research note on Thursday, May 21st. UBS Group reiterated a "buy" rating and set a $110.00 price target on shares of Hasbro in a research report on Thursday, June 18th. Finally, Citigroup cut their price objective on shares of Hasbro from $114.00 to $101.00 and set a "buy" rating for the company in a research report on Friday, July 10th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Hasbro currently has a consensus rating of "Moderate Buy" and a consensus target price of $109.71.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the company. CYBER HORNET ETFs LLC bought a new stake in Hasbro in the 2nd quarter worth $25,000. University of Texas Texas AM Investment Management Co. purchased a new stake in shares of Hasbro during the fourth quarter worth about $27,000. MUFG Securities EMEA plc purchased a new stake in shares of Hasbro during the second quarter worth about $28,000. Thurston Springer Miller Herd & Titak Inc. grew its stake in shares of Hasbro by 1,190.0% in the second quarter. Thurston Springer Miller Herd & Titak Inc. now owns 387 shares of the company's stock worth $32,000 after purchasing an additional 357 shares during the last quarter. Finally, Cedar Mountain Advisors LLC bought a new stake in shares of Hasbro in the first quarter worth about $37,000. 91.83% of the stock is owned by hedge funds and other institutional investors.

Hasbro Stock Performance

The business has a fifty day moving average of $84.73 and a 200-day moving average of $90.24. The company has a market cap of $12.87 billion, a PE ratio of -54.67, a P/E/G ratio of 2.02 and a beta of 0.49. The company has a current ratio of 1.65, a quick ratio of 1.49 and a debt-to-equity ratio of 4.59.

About Hasbro

Hasbro, Inc is a global play and entertainment company, known for designing, manufacturing and marketing a diverse portfolio of toys, games and consumer products. Founded in 1923 as Hassenfeld Brothers and headquartered in Pawtucket, Rhode Island, the company has grown into one of the foremost names in the toy industry, with a presence in retail, digital and entertainment channels worldwide.

The company's brand portfolio features iconic properties such as Monopoly, Play-Doh, Nerf, My Little Pony and Transformers.

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