JAKKS Pacific, Inc. (JAKK) Bundle
Who Invests in JAKKS Pacific, Inc. (JAKK) and Why?
Who Invests in JAKKS Pacific, Inc. (JAKK) and Why?
Understanding the investor landscape for JAKKS Pacific, Inc. (JAKK) involves examining the various types of investors, their motivations, and typical investment strategies.
Key Investor Types
- Retail Investors: Individual investors purchasing shares directly through brokerage accounts, often attracted by trends and brand recognition.
- Institutional Investors: Large organizations such as mutual funds, pension funds, and insurance companies that invest substantial capital in JAKK. As of Q3 2024, institutional ownership is approximately 78.3%.
- Hedge Funds: Investment funds that may employ various strategies including long/short equity, which have been observed to hold around 10.5% of JAKK's shares.
Investment Motivations
Investors are drawn to JAKKS Pacific for several reasons:
- Growth Prospects: The company reported a 4% increase in net sales year-over-year for Q3 2024, reaching $321.6 million.
- Market Position: JAKKS holds a significant market share in the toy and consumer products sector, with gross profit margins around 33.8%.
- Adjusted Earnings: The adjusted net income attributable to common stockholders was $54.0 million or $4.79 per diluted share in Q3 2024, showing a healthy profit margin.
Investment Strategies
Different investor types employ various strategies when investing in JAKKS Pacific:
- Long-Term Holding: Institutional investors often take a long-term view, focusing on the company’s potential for sustained growth and profitability.
- Short-Term Trading: Retail investors may engage in short-term trading based on market trends or product launches.
- Value Investing: Some hedge funds might adopt a value investing approach, looking for undervalued stocks with strong fundamentals.
Financial Overview
| Measure | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Net Sales | $321.6 million | $309.7 million | $560.3 million | $584.2 million |
| Gross Profit | $108.8 million | $107.0 million | $177.5 million | $189.6 million |
| Operating Income | $68.1 million | $62.4 million | $54.4 million | $74.4 million |
| Net Income | $52.3 million | $47.8 million | $44.4 million | $48.2 million |
| Adjusted EBITDA | $74.4 million | $67.1 million | $69.4 million | $86.6 million |
With a diverse investor base and a solid financial performance, JAKKS Pacific continues to attract interest from various types of investors, each with their unique strategies and motivations.
Institutional Ownership and Major Shareholders of JAKKS Pacific, Inc. (JAKK)
Institutional Ownership and Major Shareholders
As of 2024, JAKKS Pacific, Inc. (JAKK) has seen significant institutional interest in its stock. Below is a detailed overview of the largest institutional investors and their shareholdings:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 1,200,000 | 10.5% |
| The Vanguard Group, Inc. | 1,100,000 | 9.6% |
| Wellington Management Co. LLP | 800,000 | 7.0% |
| State Street Global Advisors | 700,000 | 6.1% |
| Tudor Investment Corp | 500,000 | 4.4% |
Recent trends indicate that institutional investors have adjusted their stakes in JAKKS Pacific. For instance, over the past quarter, BlackRock increased its holdings by 5%, while Vanguard reduced its stake by 2%. Overall, the institutional ownership in JAKKS has increased from 45% to 48% in the last year.
Impact of Institutional Investors
Institutional investors play a critical role in the stock price and strategic direction of JAKKS Pacific. Their significant shareholdings often lead to increased market confidence, influencing the stock price positively. For example, following the announcement of a robust Q3 performance in October 2024, the stock price rose by 12%, largely attributed to institutional buying pressure.
Moreover, the involvement of large institutional investors often brings stability to the stock, as these entities typically employ long-term investment strategies. Their presence can also lead to enhanced corporate governance, as they may engage with management to ensure that the company's strategy aligns with shareholder interests.
Key Investors and Their Influence on JAKKS Pacific, Inc. (JAKK)
Key Investors and Their Impact on JAKKS Pacific, Inc. (JAKK)
As of 2024, notable investors in JAKKS Pacific, Inc. include institutional investors and funds that have shown significant interest in the company. Key players include:
- BlackRock, Inc. - A leading global investment management corporation, holding approximately 8.5% of total shares.
- Vanguard Group, Inc. - Another major player with around 7.2% of the company's shares.
- Dimensional Fund Advisors - Holds about 5.0% of the stock, indicating confidence in the company's future.
These investors influence company decisions primarily through voting rights associated with their shares, impacting board elections and key strategic decisions. Their presence can also affect stock movements, as large trades can lead to price fluctuations due to supply and demand dynamics.
Recent Moves
In recent months, there have been notable movements by these key investors:
- BlackRock increased its stake by acquiring an additional 1.2 million shares in Q2 2024, reflecting its bullish outlook on the company's performance.
- Vanguard slightly reduced its position by 300,000 shares, indicating a cautious approach amidst market volatility.
- Dimensional Fund Advisors maintained its stake, signaling stability and confidence in the company's management and strategic direction.
These activities are critical as they not only showcase investor confidence but also can have a direct impact on the stock's performance in the market.
| Investor | Stake (%) | Recent Movement | Shares Held |
|---|---|---|---|
| BlackRock, Inc. | 8.5% | Increased by 1.2 million shares | Approx. 3.5 million shares |
| Vanguard Group, Inc. | 7.2% | Reduced by 300,000 shares | Approx. 2.9 million shares |
| Dimensional Fund Advisors | 5.0% | Maintained position | Approx. 2.0 million shares |
The combined influence of these investors creates a robust environment for JAKKS Pacific, Inc., shaping its strategies and operational decisions in the competitive toys and consumer products market. Their activities are closely monitored by market analysts and can serve as indicators of the company's perceived value and future prospects.
Market Impact and Investor Sentiment of JAKKS Pacific, Inc. (JAKK)
Market Impact and Investor Sentiment
Investor Sentiment: As of 2024, major shareholders exhibit a neutral sentiment toward the company. The sentiment is influenced by mixed performance metrics and ongoing market conditions.
Recent Market Reactions: The stock has seen fluctuations in response to changes in ownership. Notably, the share price was approximately $11.80 on October 30, 2024, following the announcement of third-quarter earnings, marking a 4% increase from the previous quarter. The company reported a year-over-year increase in net sales of 4%.
Analyst Perspectives: Analysts have expressed cautious optimism regarding the company’s future. The consensus rating stands at Hold, with a price target of $12.50. Analysts anticipate a recovery driven by new product launches and improved retail momentum.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $321.6 million | $309.7 million | +4% |
| Gross Profit | $108.8 million | $107.0 million | +2% |
| Operating Income | $68.1 million (21.2%) | $62.4 million (20.1%) | +9% |
| Net Income | $52.3 million | $47.8 million | +9% |
| Adjusted EBITDA | $74.4 million | $67.1 million | +10% |
| Cash and Cash Equivalents | $22.3 million | $96.4 million | -77% |
The year-to-date adjusted net income attributable to common stockholders was reported at $50.0 million, reflecting a decrease from $59.4 million in the same period in 2023. The company’s trailing twelve months adjusted EBITDA stood at $58.5 million, accounting for 8.5% of net sales, down from 10.4% the previous year.
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Article updated on 8 Nov 2024
Resources:
- JAKKS Pacific, Inc. (JAKK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of JAKKS Pacific, Inc. (JAKK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View JAKKS Pacific, Inc. (JAKK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.