) recently announced the approval of an additional share
repurchase program worth $500 million. The additional share
repurchase authorization is a part of the company's strategy to
enhance shareholder returns. The program has no expiration date.
As of Jul 31, 2013, Hasbro had approximately $71.8 million worth
shares outstanding for further repurchase.
The share buyback program will help the company reduce
outstanding share count, thereby increasing earnings per share
and return on equity. Apart from bolstering shareholder value,
this strategic move will also lift the relatively undervalued
The Pawtucket, R.I.-based company re-initiated its share
repurchase program in Jun 2005. Since the renewal of the buyback
program, Hasbro has repurchased 91.4 million shares for $2.8
Hasbro also has a dividend distribution policy in place. In Feb
2013, Hasbro raised its quarterly cash dividend by 11% to 40
cents per share with the release of its fourth-quarter 2013
results. This was preceded by a 20% hike each in Feb 2012 and
Hasbro's cash position remains stable with cash and cash
equivalents of $1.02 billion (up 30.9% year over year) while its
long-term debt was $0.96 billion (down 31.5% year over year).
This further reiterates the fact that the company has strong
liquidity and the ability to raise shareholder value.
While Hasbro did not score well in its recently-concluded
second-quarter 2013, missing the Zacks Consensus Estimates on
both counts and posting lower numbers on a year-over-year basis,
its efforts to step up long-term shareholder value is a ray of
hope for investors.
However, Hasbro is not the only company driving shareholder
returns. Last month, another sector behemoth
) also announced an increment in the stock buyback program by
Hasbro currently carries a Zacks Rank #3 (Hold). Some companies
from the toy sector that are worth a look include
Activision Blizzard Inc.
Take-Two Interactive Software Inc.
), both carrying a Zacks Rank #1 (Strong Buy)
ACTIVISION BLZD (ATVI): Free Stock Analysis
HASBRO INC (HAS): Free Stock Analysis Report
MATTEL INC (MAT): Free Stock Analysis Report
TAKE-TWO INTER (TTWO): Free Stock Analysis
To read this article on Zacks.com click here.