Mattel, Inc. (NASDAQ:MAT) Receives Consensus Rating of "Hold" from Analysts

Key Points

• Analysts remain neutral on Mattel: Fourteen brokerages give the stock a consensus “Hold” rating, with three sells, five holds, five buys and one strong buy. The average 12-month price target is $17.80 versus a recent share price of $12.66.
• Leadership uncertainty is weighing on the outlook: Roger Lynch was named chairman and CEO as Ynon Kreiz departs to become co-CEO of Paramount-Warner. The transition comes ahead of the holiday season and amid concerns about weakening Barbie sales and execution.
• Results were mixed: Mattel’s latest revenue rose 10.5% year over year to $1.13 billion, but EPS of $0.01 missed the $0.04 consensus estimate. Shares were down 4.2%, trading near their 52-week low.

Shares of Mattel, Inc. (NASDAQ:MAT - Get Free Report) have received a consensus recommendation of "Hold" from the fourteen brokerages that are currently covering the stock, Marketbeat reports. Three investment analysts have rated the stock with a sell rating, five have issued a hold rating, five have assigned a buy rating and one has assigned a strong buy rating to the company. The average 1-year price target among brokers that have issued a report on the stock in the last year is $17.80.

A number of brokerages recently issued reports on MAT. The Goldman Sachs Group cut Mattel from a "neutral" rating to a "sell" rating and dropped their price objective for the stock from $15.00 to $12.00 in a report on Thursday, July 9th. Roth Capital decreased their price target on Mattel from $16.00 to $15.00 and set a "neutral" rating on the stock in a research report on Tuesday, July 14th. Citigroup decreased their price target on Mattel from $16.00 to $15.00 and set a "neutral" rating on the stock in a research report on Friday, July 10th. Argus reissued a "buy" rating and issued a $22.00 price target on shares of Mattel in a report on Tuesday, August 25th. Finally, Odeon Capital Group began coverage on shares of Mattel in a research report on Thursday, July 16th. They issued a "buy" rating for the company.

Mattel Trading Down 4.2%

Shares of MAT stock opened at $12.66 on Thursday. The stock has a market capitalization of $3.62 billion, a price-to-earnings ratio of 9.31, a PEG ratio of 1.45 and a beta of 0.72. The company's fifty day simple moving average is $14.32 and its two-hundred day simple moving average is $14.44. Mattel has a 1 year low of $12.44 and a 1 year high of $22.48. The company has a debt-to-equity ratio of 1.17, a current ratio of 1.90 and a quick ratio of 1.26.

Mattel (NASDAQ:MAT - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The company reported $0.01 EPS for the quarter, missing analysts' consensus estimates of $0.04 by ($0.03). Mattel had a return on equity of 16.20% and a net margin of 7.79%.The company had revenue of $1.13 billion during the quarter, compared to the consensus estimate of $1.10 billion. During the same period in the previous year, the business earned $0.19 earnings per share. Mattel's revenue was up 10.5% on a year-over-year basis. Mattel has set its FY 2026 guidance at 1.270-1.390 EPS. As a group, analysts anticipate that Mattel will post 1.31 earnings per share for the current year.

Key Headlines Impacting Mattel

Here are the key news stories impacting Mattel this week:

• Neutral Sentiment: Mattel named Roger Lynch, the former Condé Nast CEO and a Mattel board member since 2018, as its new chairman and chief executive. The appointment could provide a fresh strategic direction, but investors may wait for details on his plans for growth and brand development. Mattel names Roger Lynch as CEO
• Neutral Sentiment: Outgoing CEO Ynon Kreiz is leaving Mattel to become co-CEO of the newly combined Paramount-Warner business, where he will oversee daily operations, strategic planning and integration. His departure removes the executive associated with Mattel’s entertainment-focused transformation, although the new role could preserve connections between the companies. Ynon Kreiz named Paramount-Warner co-CEO
• Negative Sentiment: Kreiz will step down on October 2, creating leadership uncertainty during the important holiday-selling period. Reports described the announcement as a key reason Mattel shares moved lower. Mattel shares decline after CEO departure news
• Negative Sentiment: Coverage highlighted weakening Barbie sales following the 2023 film-driven surge, raising concerns that Mattel has not converted enough of its brands into enduring entertainment franchises. This adds pressure on Lynch to revive sales and improve execution. Mattel gets new chief executive
• Negative Sentiment: The leadership change comes after a difficult year and ahead of the holiday season, increasing investor sensitivity to product demand, Barbie’s performance and the company’s ability to meet its outlook. Mattel’s latest quarterly EPS also missed expectations despite revenue growth, reinforcing execution concerns. Why Mattel stock is plunging ahead of the holiday season

Insider Transactions at Mattel

In other Mattel news, EVP Roberto Isaias sold 39,083 shares of the firm's stock in a transaction on Monday, August 31st. The shares were sold at an average price of $15.02, for a total value of $587,026.66. Following the completion of the transaction, the executive vice president directly owned 144,390 shares of the company's stock, valued at $2,168,737.80. This trade represents a 21.30% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 1.90% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Tidal Investments LLC raised its position in shares of Mattel by 184.6% in the second quarter. Tidal Investments LLC now owns 160,814 shares of the company's stock worth $2,232,000 after buying an additional 104,302 shares in the last quarter. Integrated Wealth Concepts LLC purchased a new position in Mattel during the second quarter worth about $37,000. Squarepoint Ops LLC grew its position in Mattel by 47.0% during the second quarter. Squarepoint Ops LLC now owns 3,481,088 shares of the company's stock worth $48,318,000 after buying an additional 1,112,467 shares in the last quarter. Nykredit A S bought a new position in Mattel in the 2nd quarter worth about $105,000. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in shares of Mattel in the 2nd quarter valued at about $271,000. Institutional investors own 97.15% of the company's stock.

About Mattel

Mattel, Inc NASDAQ: MAT is a global toy and entertainment company that designs, manufactures and markets a broad portfolio of toys, games and related consumer products. Its brands include Barbie, Hot Wheels, Fisher-Price, American Girl, Thomas & Friends, Matchbox, UNO, MEGA, Masters of the Universe and Magic 8 Ball.

The company develops products across categories such as dolls, vehicles, preschool toys, building sets, games and outdoor play. Mattel also extends its brands through entertainment content, digital gaming, consumer products, live experiences and licensing partnerships.

Founded in 1945, Mattel serves consumers in markets around the world through retail, e-commerce and other distribution channels.

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