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Monica Wolfe
Monica Wolfe
Articles (757) 

Richest Man in LA Makes Insider Buy into Toy Company

April 10, 2013 | About:

JAKKS Pacific (JAKK) reported an insider buy yesterday coming from the wealthiest man in Los Angeles.

On April 9, Director Patrick Soon-Shiong bought 858,580 shares of JAKKS at $10.42 per share. This transaction cost him a massive $8,946,404. The director now holds over 3 million shares of company stock.

Patrick Soon-Shiong is a surgeon, medical researcher and professor of medicine at UCLA. Recently Forbes ranked Soon-Shiong as the wealthiest American in the health care industry as well as the wealthiest resident of Los Angeles.

This buy marks the first insider transaction since 2009. Soon-Shiong also managed to nab the stock as its price is nearing a 10-year low of $10.10.

According to the GuruFocus analysis of JAKKS Pacific, the company’s revenue has been in decline for the past five years. Also, the gross margin has been in a long-term decline. The average rate of decline per year is 4.5%. On the other hand the dividend yield is close to a two-year high of 3.86%.

JAKKS Pacific is a California-based toy company. The company designs, produces, markets and distributes toys and related products such as writing instruments, pet toys, consumables, electronics and other consumer products. JAKKS also has a contract which allows them to be the sole producer of Disney Channel toys and products.

Stephen Berman, president and CEO of JAKKS, said, “We are optimistic for our future growth and profitability. We believe that our core business lead by our infant/preschool, seasonal and Halloween segments, in conjunction with meaningful reductions in operating costs will return the Company to profitability in 2013.”

Recently, JAKKS announced that it would be working with Soon-Shiong’s tech holding company in order to create an iDream technology and DreamPlay toys.

Market Cap: 243.5 M P/E: n/a Shiller P/E: 4.6
P/B: 1.2 P/S: 0.4 EV/EBITDA: 21.93
52 Week Low: 10.10 52 Week High: 19.39 Average Volume: 173,000

There are nine gurus that hold a stake in JAKKS Pacific. To see the complete list of these gurus and the shares they hold, click here.

With its shares up 3.7%, JAKKS Pacific trades at $10.94.

  • CEO Buys, CFO Buys: Stocks that are bought by their CEO/CFOs.
  • Insider Cluster Buys: Stocks that multiple company officers and directors have bought.
  • Double Buys:: Companies that both Gurus and Insiders are buying
  • Triple Buys: Companies that both Gurus and Insiders are buying, and Company is buying back.

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