How To Play The 12% Rally In JAKKS Pacific, Inc. (JAKK)

JAKKS Pacific, Inc. (NASDAQ:JAKK) is trending higher in the market today as the company shares are trading 12% or 0.09 points up from last closing price of $0.75, reaching $0.84 at last check. Any clue why there is so much of action in the JAKK stock? The share price is gaining for the fifth day in a row and has risen in 3 of the last 5 days and is down -1.32% over the past week. It will be exciting to see whether the stock manages to continue increasing or take a minor break for the next few days. The move came on weak volume too with far less shares changing hands than in a normal session. Trading activity as of this writing weakened by -300,918 shares, and in total 63582 shares valued at $53409 were seen changing hands compared with 364500 shares valued at $273375 recorded at the previous session. You should take into consideration that a falling volume on higher prices causes divergence and may be an early warning about possible changes in JAKK stock for the next couple of days.

JAKKS Pacific, Inc. (JAKK) shares have notched a 3-month decline of about -1.32%, but has still tumbled -48.98% year to date. By comparison, the stock sank -71.15% over the past 12 months, while it slipped -7.41% over the 1 month. The company’s market cap is around $26.15M, with its short interest ratio standing at 36.55%.

In the current trading session for JAKK, the stock witnessed two major price actions, it rose to a high of $0.9 and was down as much as $0.84 at one point. The high recorded is very low when compared to their 52-week high which is $0.51. The 52-week high is now at -70.69 distance from current price. Their recent low of $2.9 represents a 65.79% recovery. This data is quite important for investors who look to benefit from the recent rise of the company’s stock. Taking a look at the overall sentimental views of financial analysts, the trading pattern of this stock recently is very clear.

The stock of JAKKS Pacific, Inc. earned $-1.99 per share in the trailing 12 months and has a P/E ratio of -0.42. You can compare it with that of similar companies in its industry to get a sense of whether the stock you’re looking to purchase is overvalued or undervalued. Its current price to earnings ratio is lower than the ones recorded by the industry which is 29.19 and lower compared to the sector’s average of 26.69. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. JAKK also has P/S multiple of 0.05. This is smaller versus the 12 month P/S ratios of other companies in the same indutry. The peer average price to sales ratio is 0.48x.

The company recorded an interesting insider purchase transaction by the CEO on Aug 07, 2017. A Securities and Exchanges Commission filings show that Stephen G. Berman bought a total of 10,000 JAKK shares that day for a sum of around $34,000. JAKKS Pacific, Inc. (JAKK) insiders have acquired 3,061,224 shares in the stock within the past three months. In total, individual insiders traded 3,115,928 shares in the business, which makes up 86.258% of 3,612,349 shares that were traded over a year. In the past 12 months, insiders have purchased 3,389,454 shares while the seller parted with 222,895 shares.

JAKK‘s last price was down -34.28% as compared to the average trading price of 50 days recorded at $1.28 while enlarging the period to 200 trading days, the average closing price was $0.79. At present, there are 34.86 million in the total number of common shares owned by the public and among those 18.01 million shares have been available to trade. The percentage of shares being held by the company management was 20.8% while institutions stake was 38.8%. The company has generated negative returns on equity over the last 12 months (-121.5%). It managed to keep its gross profit margin at 25.6% over the past 12 months.

When assessing the full upside of the JAKK stock, there is another set of technicals that should be looked into and considered. Its 13.77% gain from moving average of $0.74 has brought about a positive sentiment when calculated over the last 20 days. The market has allocated a beta of 1.28 to the stock. With the beta been greater than one, this implies that the company shares are theoretically more volatile than the market, something that the traders definitely are keeping an eye on.

Most of the analysts surveyed by Thomson/First Call think quite highly of JAKKS Pacific, Inc. — 0 analysts rate the stock as a buy with another 0 rating it strong buy. There are 2 analysts who maintain a hold rating for the stock, with 0 giving it a sell rating. Analysts arrived at a 12-month price target of $1.25 on shares of JAKKS Pacific, Inc. (NASDAQ:JAKK), which corresponds to 52.44% upside potential than its current market price of $0.84 and implies potential despite the recent advance in the price. However, their current target price has fallen from $1.5 a month ago and is down handily from the consensus target of $1.5 a quarter ago.

In the last five years, the EPS of the company has been roughly 5.5%. Though the percentage looks disappointing, extra tailwinds are emerging as looking out over a next 5-year period, with analysts estimating that their earnings will increase annually by 15%. The revenue of the company has retreated at an average annualized rate of about -2.1 over the last five years. The company recently recorded a drop of -10%, but this figure is rather unattractive.

Let’s briefly check the hedge fund interest towards JAKK stock. Bank of America Corp DE added position in the company after it grew 65% or 1,571,306 shares of its common stock. The hedge fund now owns 2,592,655 shares worth $2,177,830, SEC documents show. Vanguard Group Inc. cut assets in the stock as 888383.3 shares have been sold, reducing its stake by -15.2% to 753,349 shares which are currently valued at $632,813. In addition, BlackRock Inc. recently reported that it now owns 362,038 shares making a total of $304,112 based on the recent price. This refelects a change of -12.2% in their ownership.