Market Befuddled By Tuesday's Toy Stock Spike

Toy stocks began to resettle Wednesday after inexplicable intraday spikes sent Hasbro, Inc. (NASDAQ: HAS) up 6.3 percent and Mattel, Inc. (NASDAQ: MAT) up 16 percent Tuesday.

Even JAKKS Pacific, Inc. (NASDAQ: JAKK) and Funko Inc (NASDAQ: FNKO) saw marginal pops, leaving analysts baffled.

“We cannot point to any specific reason for the stocks' moves, except to note that there has been media speculation in recent months about HAS acquiring MAT,” D.A. Davidson analyst Linda Bolton Weiser said in a note. Such movement isn’t unusual in the rumor-mill industry, which has otherwise seen little benefit from the retail rally and slowing holiday sales.

Tuesday’s rise may have been related to NPD retail sales data, which listed toys as one of the top-performing categories during week nine of the holiday season. Toys were not named on the list in preceding weeks.

On Wednesday, Mattel was down more than 1 percent and Hasbro was up 0.70 percent at the time of publication. 

Notably, Toys R Us announced after-hours Tuesday the closure of 180 stores — about one-fifth of its sites — in the U.S. The closures, which will take place between February and mid-April, will eliminate a portion of toymakers’ distribution channels.

The manufacturers have been sensitive to Toys R Us news since the store’s bankruptcy was first reported.

Related Links:

Hasbro Vs. Mattel: In A Tough Retail Environment, Which Toymaker Is Stronger?

Considering Implications For Hasbro And Mattel From The Toys 'R' Us Bankruptcy