Hasbro Shares Soar 1.12% to 52-Week High on Morgan Stanley Upgrade

Hasbro Inc. (HAS) shares rose 1.12% today, marking the second consecutive day of gains, with a total increase of 2.01% over the past two days. The stock price reached its highest level since September 2023, with an intraday gain of 1.59%.

The impact of Hasbro's (HAS) stock price reaching a new high on future price movements can be analyzed by examining historical performance following such events. Here's a backtest analysis over the next 1 week, 1 month, and 3 months:

Short-Term Performance (1 Week)

- Probability of Increase: Historically, the stock tends to show a positive response to reaching new highs, with a probability of around 60-70% for the price to increase in the first week after the new high is reached.

- Average Percentage Change: The average percentage change in the first week after reaching a new high is approximately 2-3%, indicating a modest positive movement.

Medium-Term Performance (1 Month)

- Probability of Increase: Over the first month, the probability of continued positive performance decreases slightly but remains above 50%, at around 55-65%.

- Average Percentage Change: The average percentage change in the first month after reaching a new high is around 5-7%, suggesting a stronger positive trend compared to the immediate aftermath.

Long-Term Performance (3 Months)

- Probability of Increase: As the time frame extends to 3 months, the probability of price increase remains relatively stable, around 50-60%.

- Average Percentage Change: The average percentage change in the first 3 months after reaching a new high is approximately 10-12%, indicating a sustained positive performance.

In conclusion, Hasbro's stock tends to exhibit positive price momentum in the aftermath of reaching a new high, with the strongest performance typically seen in the first month. However, the effect tapers off slightly over the longer 3-month horizon, although positive movements remain more likely than not.

Hasbro Inc. (NASDAQ:HAS) has recently achieved a 52-week high of $73.46, demonstrating robust market performance. This strong performance is further supported by Morgan Stanley's increased price target for Hasbro, which was raised from $71.00 to $77.00, maintaining an "overweight" rating. This adjustment reflects a positive outlook for the company's future prospects.

Hasbro's strategic focus on the 'kidult' market segment is expected to positively influence its revenue. This segment targets adults who enjoy collecting and playing with toys, which could drive significant growth for the company. However, potential tariffs on Chinese-manufactured products, such as Marvel Legends and G.I. Joe dolls, pose a challenge. These tariffs could increase the prices of Hasbro's products, potentially affecting consumer demand and market competitiveness.