The iconic toy manufacturer Hasbro is experiencing a remarkable resurgence, with its stock reaching unprecedented levels. This surge is primarily fueled by the exceptional performance of its gaming division, even as the company’s traditional toy business faces ongoing challenges. The critical question for investors is whether the growth from brands like Magic: The Gathering can single-handedly sustain this upward trajectory.
Impressive Quarterly Results Exceed Forecasts
Hasbro’s second-quarter 2025 financial report delivered a stunning performance that significantly outpaced market expectations. The company posted revenue of $980.8 million, surpassing projections by a substantial 12 percent. Even more impressive was the earnings per share figure of $1.30, which dramatically exceeded the anticipated $0.78. This outstanding performance was largely driven by the Wizards of the Coast segment, home to powerhouse gaming franchises including Magic: The Gathering and Dungeons & Dragons, which continue to generate substantial revenue.
Market Experts Revise Price Targets Upward
The stronger-than-anticipated results triggered a series of upgrades from financial institutions. UBS raised its price objective to $88, highlighting the company’s strengths in the gaming sector. Citi expressed even greater optimism with a $91 target, while Goldman Sachs had already upgraded the stock to “Buy” with an $85 target in June. Morgan Stanley followed suit by reaffirming its “Overweight” rating. The current range of price targets now extends to $95, demonstrating strong confidence from market analysts.
Should investors sell immediately? Or is it worth buying Hasbro?
Beyond the share price appreciation, Hasbro maintains its commitment to shareholder returns through a consistent dividend policy. The annual distribution of $2.80 per share provides an attractive yield of 3.5 percent. However, recent insider trading activity reveals a more nuanced picture: two senior executives, including the CEO of Hasbro Gaming, sold significant stock holdings in late August at prices around $79 per share.
The central challenge for Hasbro remains its ability to sustain growth in its high-margin gaming business while simultaneously stabilizing its traditional toy operations. Market sentiment appears positive, with the stock trading just slightly below its all-time peak.
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