Hasbro (NASDAQ:HAS) Shares Gap Down - Here's Why

Key Points

• Hasbro's stock price experienced a significant drop, gapping down from $75.16 to $71.00 before closing at $74.41 amidst a trading volume of 811,708 shares.
• Despite this drop, several analysts have upgraded their ratings on Hasbro, with Goldman Sachs increasing its price target from $66 to $85 and maintaining a "buy" rating.
• Hasbro reported a positive earnings surprise with $1.68 EPS, exceeding analyst expectations, and a revenue increase of 8.3% year-over-year, amounting to $1.39 billion.

Hasbro, Inc. (NASDAQ:HAS - Get Free Report)'s share price gapped down prior to trading on Thursday . The stock had previously closed at $75.16, but opened at $71.00. Hasbro shares last traded at $74.41, with a volume of 811,708 shares changing hands.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on HAS shares. The Goldman Sachs Group raised shares of Hasbro from a "neutral" rating to a "buy" rating and raised their price objective for the company from $66.00 to $85.00 in a research note on Monday, June 30th. Morgan Stanley raised their price objective on shares of Hasbro from $83.00 to $85.00 and gave the company an "overweight" rating in a research note on Thursday, July 24th. Bank of America raised their price objective on shares of Hasbro from $95.00 to $100.00 and gave the company a "buy" rating in a research note on Monday, September 29th. Roth Capital upped their price objective on shares of Hasbro from $86.00 to $92.00 and gave the stock a "buy" rating in a research report on Thursday, July 24th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Hasbro in a research note on Wednesday, October 8th. Ten equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Hasbro presently has an average rating of "Moderate Buy" and a consensus target price of $87.64.

Hasbro Trading Up 2.2%

The company has a debt-to-equity ratio of 12.31, a current ratio of 1.66 and a quick ratio of 1.32. The stock has a market capitalization of $10.77 billion, a PE ratio of -18.79, a PEG ratio of 0.96 and a beta of 0.60. The stock's 50 day simple moving average is $77.15 and its two-hundred day simple moving average is $70.91.

Hasbro (NASDAQ:HAS - Get Free Report) last released its earnings results on Thursday, October 23rd. The company reported $1.68 earnings per share for the quarter, beating analysts' consensus estimates of $1.63 by $0.05. The firm had revenue of $1.39 billion for the quarter, compared to analysts' expectations of $1.35 billion. Hasbro had a negative net margin of 13.37% and a positive return on equity of 64.49%. The company's quarterly revenue was up 8.3% on a year-over-year basis. During the same period in the previous year, the company earned $1.73 earnings per share. On average, sell-side analysts expect that Hasbro, Inc. will post 4.33 EPS for the current year.

Insider Buying and Selling at Hasbro

In other Hasbro news, CEO Christian P. Cocks sold 27,800 shares of the business's stock in a transaction dated Thursday, August 21st. The shares were sold at an average price of $78.92, for a total value of $2,193,976.00. Following the transaction, the chief executive officer directly owned 249,861 shares in the company, valued at $19,719,030.12. The trade was a 10.01% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Timothy J. Kilpin sold 8,557 shares of the business's stock in a transaction that occurred on Wednesday, August 27th. The shares were sold at an average price of $81.44, for a total transaction of $696,882.08. Following the completion of the sale, the insider directly owned 44,301 shares in the company, valued at approximately $3,607,873.44. This trade represents a 16.19% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 37,359 shares of company stock worth $2,970,828 over the last three months. 0.85% of the stock is currently owned by insiders.

Institutional Trading of Hasbro

Several hedge funds and other institutional investors have recently modified their holdings of the business. Park Avenue Securities LLC raised its position in shares of Hasbro by 35.2% in the third quarter. Park Avenue Securities LLC now owns 55,211 shares of the company's stock valued at $4,188,000 after purchasing an additional 14,374 shares during the period. KLP Kapitalforvaltning AS raised its position in shares of Hasbro by 1.1% in the third quarter. KLP Kapitalforvaltning AS now owns 27,800 shares of the company's stock valued at $2,109,000 after purchasing an additional 300 shares during the period. CoreCap Advisors LLC raised its position in shares of Hasbro by 515.4% in the third quarter. CoreCap Advisors LLC now owns 5,354 shares of the company's stock valued at $406,000 after purchasing an additional 4,484 shares during the period. Hennion & Walsh Asset Management Inc. raised its position in shares of Hasbro by 148.7% in the third quarter. Hennion & Walsh Asset Management Inc. now owns 8,986 shares of the company's stock valued at $682,000 after purchasing an additional 5,373 shares during the period. Finally, Longboard Asset Management LP bought a new stake in shares of Hasbro in the third quarter valued at approximately $210,000. Institutional investors own 91.83% of the company's stock.

Hasbro Company Profile

Hasbro, Inc, together with its subsidiaries, operates as a toy and game company in the United States, Europe, Canada, Mexico, Latin America, Australia, China, and Hong Kong. The company operates through Consumer Products; Wizards of the Coast and Digital Gaming; Entertainment; and Corporate and Other segments.

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