Insider Buying

Insider Buying Report: Hasbro Inc (HAS:US)

Hasbro's logo is situated in the center with the company's mascots and characters for its various toys and games surrounding it
Hasbro Inc
HAS: US
12 months:
-5.26%
Activity:
Bullish
Pattern:
Large purchase from CEO
News:
Q1 Results
Hasbro Inc
HAS: US
12 months:
-5.26%
Activity:
Bullish
Pattern:
Large purchase from CEO
News:
Q1 Results

CEOs tend to have a deep level of insight into their firms’ operations and financials. If they’re buying company stock, it’s generally a sign that business performance is strong and that the outlook for the stock is attractive.

In this report, we are going to highlight a large purchase by insiders, including the CEO, at Hasbro Inc (HAS: US). Hasbro is an American conglomerate that owns toys, board games, and media assets. Its toys include Transformers, My Little Pony, and Nerf, while its board games include Monopoly, Scrabble, and Trivial Pursuit. The company is listed on the NASDAQ Global Select Market and currently has a market capitalization of $13.1 billion.

Hasbro Inc: Insider Buying

Our insider transaction data shows that Hasbro’s CEO bought company stock on April 21, followed by a Board member who bought on April 25:

  • CEO Chris Cocks bought 10,102 shares at a price of $89.59 per share. This trade cost the insider $905,045 and increased his holding to 65,945 shares.
  • Michael Raymond Burns, the Director, purchased 2,500 shares of HAS, at a value of $87.703 per share. His trade had a net worth of $217,942 and his holdings are up to 16,398.

A chart of HAS's stock price varying over the last year compared to the trades by Hasbro's Insiders

High-conviction Trade

This trade stands out for a number of reasons. Firstly, it’s large in size. Our records show that it represents the largest insider purchase at Hasbro since October 2018.

Secondly, it has boosted the size of Mr. Cocks’ holding by a significant 18%. The fact that the CEO has upped his stake by such a substantial percentage suggests he’s confident the stock is set to move higher.

Third, Mr. Cocks has a proven track record at the company. Prior to being named CEO at Hasbro, he was President of the company’s Wizards of the Coast and Digital Gaming segment. Here, he unlocked numerous multi-million-dollar ideas and more than doubled growth.

Additionally, Mr. Burns has served at Media and Entertainment focused companies. He also serves on the Board of Directors at Lions Gate Entertainment Corp. (LGF/B: US) and is experienced in strategic planning, developing, and investing in entertainment platforms. 

Price Rises

Hasbro recently posted an underwhelming set of Q1 results.

While revenue was up 4% to $1.16 billion for the quarter, adjusted earnings per share came in at $0.57, down from $1.00 a year earlier, and below the consensus forecast of $0.61.

Yet the stock rose after the company advised that it will raise toy prices in the middle of the year, following an increase implemented at the beginning of April. This should help offset higher costs.

The market also liked the fact that the company raised its full-year adjusted operating profit margin to 16% and said that it expects to generate mid-single-digit operating profit growth in 2022, up from low-single digits growth.

It’s worth noting that the group plans to resume share repurchases this quarter, with a target of buying back $75 million to $150 million of stock in 2022.

Meanwhile, management is confident in relation to the long-term growth story. "Hasbro has carefully assembled an unmatched portfolio of brand-building capabilities and valuable brands to drive profitable growth and long-term shareholder returns," said Mr. Cocks in the Q1 results.

In light of the improved guidance here, and the share buyback plans, we see these insider buyings as a bullish indicator.

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