Hasbro (HAS) stock was up on Monday despite a new lawsuit from a group of investors in the toy company. These investors are unhappy about how the company has handled the Magic: The Gathering brand recently. According to the lawsuit, Hasbro has risked “destroying the long-term value of the brand” by “overloading the market with Magic sets.”
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The lawsuit alleges that Hasbro has overprinted recent Magic sets beyond consumer demand. It claims the company has done so as part of a parachute strategy to boost revenue with increased Magic card sales to cover for other products that have underperformed. This lawsuit specifically targets Hasbro CEO Chris Cocks.
The lawsuit argues that Hasbro’s overprinting of cards will damage the brand in the long run as card value diminishes on the secondary market. The idea here is that as more cards are printed beyond consumer demand, the resale value of those cards will drop. This would push away collectors, who have long supported the brand by buying cards and reselling them later when prices have increased.
Hasbro Stock Movement Today
Hasbro stock was up 0.29% on Monday, extending an 8.6% rally year-to-date. The shares have also increased 51% over the past 12 months.
HAS stock trading activity today saw some 147,000 shares change hands, compared to a three-month daily average trading volume of about 1.47 million units.
Is Hasbro Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Hasbro is Moderate Buy, based on four Buy and one Sell rating over the past three months. With that comes an average HAS stock price target of $96.75, representing a potential 8.82% upside for the shares.
