John Kimble, the Chief Financial Officer of Jakks Pacific Inc. (NASDAQ:JAKK), recently sold a significant portion of his holdings in the company. According to an SEC filing, Kimble sold 48,253 shares of common stock at an average price of $27.62 per share, totaling approximately $1.33 million. This transaction was executed under a 10b5-1 trading plan, which was adopted by Kimble earlier this year. Following the sale, Kimble retains ownership of 95,544 shares in the company.
In other recent news, JAKKS Pacific , Inc. reported a period of growth and strategic positioning in its Q3 2024 earnings conference call. The company highlighted this quarter as its highest sales period, with significant sales increases in its toy divisions, notably a 48% surge in Latin America to $22.6 million. Despite facing challenges like East Coast port issues and retail creditworthiness concerns, CEO Stephen Berman expressed optimism about the company's diverse product offerings and market positioning.
JAKKS Pacific also reported that it is debt-free with $63.5 million in net inventory, and its gross margins exceeded 33%, leading to a 2% growth in gross profit for Q3. However, the company did note retail credit challenges and cautious inventory allocations by retailers amidst economic uncertainties.
The company is preparing for a robust 2025, leveraging its diverse IP portfolio, which includes partnerships with Disney (NYSE:DIS), PAW Patrol, and Pokémon. New product launches are on the horizon, such as the Disney Princess Style Collection and a Super Mario playset, and upcoming movie releases "Dog Man" and "Moana 2" are expected to drive growth.
The company's focus on maintaining strong retailer relationships and a balanced risk strategy, along with its commitment to a minimum of 30% gross margins annually, are major facets of its outlook. These recent developments reflect JAKKS Pacific's efforts to navigate market challenges while capitalizing on growth opportunities.
InvestingPro Insights
The recent sale of shares by Jakks Pacific's CFO John Kimble comes at a time when the company's stock has shown strong performance. According to InvestingPro data, Jakks Pacific has seen a robust 21.83% price return over the past three months and an impressive 43.62% return over the last six months. This aligns with an InvestingPro Tip highlighting the company's "Strong return over the last three months."
Despite the recent stock sale by the CFO, Jakks Pacific's financial position appears solid. The company's P/E ratio stands at 8.88, suggesting a relatively low valuation compared to earnings. Additionally, an InvestingPro Tip notes that Jakks Pacific "Holds more cash than debt on its balance sheet," indicating a healthy financial structure.
However, investors should be aware that the stock "price movements are quite volatile," as pointed out by another InvestingPro Tip. This volatility is reflected in the company's year-to-date price total return of -21.83%, contrasting with its strong short-term performance.
For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips on Jakks Pacific, providing deeper insights into the company's financial health and market position.
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