Hasbro stock hits 52-week low at $54.25 amid market challenges

Published 03/04/2025, 15:52
Hasbro stock hits 52-week low at $54.25 amid market challenges

In a challenging market environment, Hasbro Inc (NASDAQ:HAS). shares have touched a 52-week low, dipping to $54.25. The toymaker, known for iconic brands such as Monopoly and Transformers, has faced headwinds that have pressured its stock price over the past year, culminating in this recent low point. According to InvestingPro data, the company maintains impressive gross profit margins of 63% and offers a notable 4.47% dividend yield, having maintained dividend payments for 45 consecutive years. Despite efforts to adapt to the evolving toy industry and consumer trends, Hasbro has seen its revenue decline by 17.34% over the last twelve months. This decline reflects broader market trends and specific challenges within the toy sector, including supply chain disruptions and changing consumer preferences. Investors are closely monitoring the company’s strategy and performance as it navigates through these turbulent times, with InvestingPro analysts projecting a potential 28% upside from current levels. Get deeper insights and access to 8 additional ProTips with an InvestingPro subscription.

In other recent news, Hasbro has seen a series of notable developments impacting its outlook and strategic direction. S&P Global Ratings revised Hasbro’s outlook to stable from negative due to improved profitability and credit metrics in 2024, despite a 17% revenue decline attributed to exiting unprofitable business lines and the divestiture of eONE. Fitch Ratings also updated Hasbro’s outlook to stable, citing significant EBITDA recovery and debt reduction, with leverage decreasing to 3.4x. Fitch anticipates revenue stabilization in 2025, supported by growth in the Wizards of the Coast segment and modest declines in Consumer Products.

DA Davidson maintained a Neutral rating on Hasbro, adjusting the stock price target to $75 following a meeting with company management. The firm noted Hasbro’s strategic plan through 2027 and highlighted challenges within the Nerf and Star Wars lines. DA Davidson revised its 2025 sales growth forecast for Hasbro from 4% to 1%, reflecting a conservative outlook due to these challenges. Additionally, the company projects a flat or slight decline in toy sales for 2025, with growth expected in subsequent years.

Molson Coors (NYSE:TAP) announced the nomination of Hasbro CEO Chris Cocks to its Board of Directors, emphasizing his experience in commercial success and brand management. Cocks is expected to bring valuable insights to Molson Coors, drawing from his leadership roles at Hasbro, Microsoft (NASDAQ:MSFT), and LeapFrog Enterprises. These developments reflect Hasbro’s ongoing focus on strategic adjustments and market adaptation, as the company navigates a complex landscape in the toy and gaming industry.

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