Back to top

Analyst Blog

Toy-maker Hasbro Inc. (HAS - Analyst Report) recently announced the approval of an additional share repurchase program worth $500 million. The additional share repurchase authorization is a part of the company’s strategy to enhance shareholder returns. The program has no expiration date. As of Jul 31, 2013, Hasbro had approximately $71.8 million worth shares outstanding for further repurchase.

The share buyback program will help the company reduce outstanding share count, thereby increasing earnings per share and return on equity. Apart from bolstering shareholder value, this strategic move will also lift the relatively undervalued share price.

The Pawtucket, R.I.-based company re-initiated its share repurchase program in Jun 2005. Since the renewal of the buyback program, Hasbro has repurchased 91.4 million shares for $2.8 billion.

Hasbro also has a dividend distribution policy in place. In Feb 2013, Hasbro raised its quarterly cash dividend by 11% to 40 cents per share with the release of its fourth-quarter 2013 results. This was preceded by a 20% hike each in Feb 2012 and 2011.

Hasbro’s cash position remains stable with cash and cash equivalents of $1.02 billion (up 30.9% year over year) while its long-term debt was $0.96 billion (down 31.5% year over year). This further reiterates the fact that the company has strong liquidity and the ability to raise shareholder value.

While Hasbro did not score well in its recently-concluded second-quarter 2013, missing the Zacks Consensus Estimates on both counts and posting lower numbers on a year-over-year basis, its efforts to step up long-term shareholder value is a ray of hope for investors.

However, Hasbro is not the only company driving shareholder returns. Last month, another sector behemoth Mattel Inc. (MAT - Analyst Report) also announced an increment in the stock buyback program by $500 million.

Hasbro currently carries a Zacks Rank #3 (Hold). Some companies from the toy sector that are worth a look include Activision Blizzard Inc. (ATVI - Snapshot Report) and Take-Two Interactive Software Inc. (TTWO - Snapshot Report), both carrying a Zacks Rank #1 (Strong Buy)

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SUPER MICRO… SMCI 26.63 +8.74%
CENTURY ALU… CENX 26.36 +5.52%
BANCO DO BR… BDORY 16.36 +5.34%
TESLA MOTOR… TSLA 281.91 +4.53%
WILLDAN GRO… WLDN 11.20 +4.19%