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Continue To Avoid Hasbro Stock

May 02, 2022 3:11 PM ETHasbro, Inc. (HAS)5 Comments
Patrick Doyle profile picture
Patrick Doyle


  • In spite of a nice revenue increase, net income cratered during the most recent quarter. The capital structure improved nicely, though.
  • While I think the dividend is very well covered here, I think the shares are overpriced.
  • Thankfully, the options market is still offering reasonable premia for the October puts with a strike of $70. I recommend selling these in lieu of share ownership.
New York Comic Con 2021 - Day 4

Bennett Raglin/Getty Images Entertainment

It’s been just under two months since I wrote my cautious piece on Hasbro Inc. (NASDAQ:HAS), and in that time, the shares have returned a negative 4% against a loss of 4.5% for the S&P 500. The company has announced earnings yet

This article was written by

Patrick Doyle profile picture
I'm a quant investment newsletter writer who marries fundamental analysis with the latest research in momentum. Over the past few years, I’ve developed a piece of software that helps me track the level of optimism and pessimism embedded in stock price. I seek to challenge the assumptions embedded in price by profitably exploiting the disconnect between what the market thinks and what is a likely outcome. I invest in those companies that have a greater than average chance of giving us all a surprise in the next few months.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of HAS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I'm still short the puts I wrote about previously. To be clear, I'm not selling any more of the October 70s today, as I've got enough exposure to this name already.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (5)

Wish they would spin out their Wizards of the coast division. It’s the only part of the company I’m interested in.
Nothing mentioning Mattel? Really? $MAT is great
@Kann352 it was an article on HAS.
@NP20151153 that's like discussing an article on LYFT without mentioning UBER.
Patrick Doyle profile picture
@Kann352 Hi and thanks for the comment. You raise an interesting philosophical question, and I come down on the other side from you obviously.
I don't tend to make comparisons between companies in the same industry to pick a "favourite", because we retail investors aren't limited the way institutional investors are. The blue dumpster fire and the red dumpster fire aren't sufficiently distinct for me, and their prices tend to correlate tightly anyway.
If I'm going to make a comparison it'll be between asset classes, as I did in the above. If I can make the argument that a 10 year risk free Note is better than this stock, what else matters?
Anyway, that's my reasoning.
Take care.
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