Hasbro Outlook - Weak Technicals and Mixed Analyst Sentiment Call for Cautious Approach

1. Market Snapshot

Headline Takeaway: Hasbro is under pressure technically with weak momentum indicators, and recent analyst ratings are inconsistent, suggesting a cautious stance.

2. News Highlights

Here are a few recent stories that could influence investor sentiment:

• U.S. Changes to COVID-19 Vaccine Policy (May 29): While this news primarily affects the healthcare sector, it highlights broader policy shifts that may influence overall market sentiment, especially if it spurs economic reopening.
• REX Shares Filing for Ethereum and Solana ETFs (May 31): This could indicate growing institutional interest in crypto assets. While not directly related to Hasbro, it reflects a broader trend in financial markets that may impact risk appetite and capital flows.
• China’s Factory Activity Slows in May (May 31): China’s PMI rose slightly to 49.5, still below the 50 threshold for contraction. This could signal weaker global demand for consumer goods like those offered by Hasbro, especially if it affects their Asian markets.

3. Analyst Views & Fundamentals

Analysts are divided in their outlook for Hasbro. The simple average rating is 4.33, while the historical performance-weighted rating is 2.76, indicating that the average rating is higher than the performance-adjusted score.

The rating consistency is low, with recent ratings ranging from "Strong Buy" to "Underperform." The current price trend is down by -2.10%, and the weighted expectations align with this downward movement.

Key fundamental factors and their values include:

• Quick Ratio: 132.28% (score: 3.00)
• Net Cash Flow from Operating Activities per Share (YoY Growth Rate): -93.77% (score: 1.00)
• EV/EBIT: -20.03% (score: 3.00)
• Net Cash Flow from Operating Activities / Operating Revenue: 11.21% (score: 3.00)
• Shareholders' Equity / Total Liabilities: 4.92% (score: 2.00)

While some factors show reasonable strength, the cash flow decline and leverage ratios are concerning, suggesting a mixed fundamental outlook.

4. Money-Flow Trends

Money is flowing in, but the pattern is mixed. The overall inflow ratio is 52.71%, indicating positive movement in capital. However, retail investors are more bearish, with a small trend of -47.82%, while large and extra-large institutions are more optimistic. Big-money inflows are at 53.52%, which is encouraging but must be weighed against the negative technical signals.

5. Key Technical Signals

Technically, Hasbro is in a weak position. Our internal diagnostic score is 2.1 (0-10), suggesting a "weak state" with a strong risk of decline.

Key signals include:

• WR Oversold: Internal strength score: 2.07 – indicates a weak rebound potential.
• MACD Death Cross: Score: 1.77 – a strong bearish divergence.
• Dividend Payable Date: Score: 1.03 – historically linked to underperformance.
• WR Overbought: Score: 3.51 – not strong enough to override the bearish factors.

Recent chart activity shows a MACD Death Cross on August 29 and a WR Oversold signal on September 3, reinforcing the bearish sentiment. The overall trend is weak, and the model suggests avoiding the stock at this time.

6. Conclusion

With weak technical indicators, mixed analyst sentiment, and declining operating cash flow, Hasbro appears to be a stock to avoid in the near term. Investors should consider waiting for a clearer rebound signal before entering or re-entering the stock. Watch upcoming earnings and any shifts in market sentiment toward consumer goods for better timing.