Primecap Management Co. CA Acquires Shares of 29,505,735 Mattel, Inc. $MAT

Key Points

• Primecap Management acquired 29.5 million Mattel shares worth approximately $409.5 million, giving it a 10.33% stake and making it a significant institutional holder.
• Analyst sentiment is mixed: Mattel has an average “Hold” rating and a consensus price target of $17.80, with targets ranging from $12 to $22 and recent downgrades from Goldman Sachs and Weiss Ratings.
• Mattel’s latest quarter showed revenue rising 10.5% year over year to $1.13 billion, but EPS of $0.01 missed estimates of $0.04; the stock recently opened at $15.26, near its 200-day moving average.

Primecap Management Co. CA bought a new stake in shares of Mattel, Inc. (NASDAQ:MAT - Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm bought 29,505,735 shares of the company's stock, valued at approximately $409,540,000. Primecap Management Co. CA owned about 10.33% of Mattel at the end of the most recent reporting period.

Other hedge funds also recently made changes to their positions in the company. Public Employees Retirement System of Ohio raised its position in Mattel by 0.6% in the third quarter. Public Employees Retirement System of Ohio now owns 100,310 shares of the company's stock worth $1,688,000 after acquiring an additional 623 shares during the period. Sei Investments Co. grew its holdings in Mattel by 1.7% during the second quarter. Sei Investments Co. now owns 45,736 shares of the company's stock valued at $902,000 after purchasing an additional 758 shares during the period. Quinn Opportunity Partners LLC increased its position in Mattel by 4.5% in the fourth quarter. Quinn Opportunity Partners LLC now owns 18,070 shares of the company's stock worth $359,000 after buying an additional 774 shares during the last quarter. Mercer Global Advisors Inc. ADV raised its stake in shares of Mattel by 6.7% in the third quarter. Mercer Global Advisors Inc. ADV now owns 16,397 shares of the company's stock valued at $276,000 after buying an additional 1,025 shares during the period. Finally, Farther Finance Advisors LLC lifted its position in shares of Mattel by 107.5% during the 4th quarter. Farther Finance Advisors LLC now owns 2,023 shares of the company's stock valued at $40,000 after buying an additional 1,048 shares during the last quarter. 97.15% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on the company. The Goldman Sachs Group lowered Mattel from a "neutral" rating to a "sell" rating and decreased their price objective for the stock from $15.00 to $12.00 in a report on Thursday, July 9th. Argus reiterated a "buy" rating and issued a $22.00 target price on shares of Mattel in a research note on Tuesday. Wall Street Zen cut shares of Mattel from a "buy" rating to a "hold" rating in a research note on Sunday, May 10th. Odeon Capital Group initiated coverage on shares of Mattel in a research note on Thursday, July 16th. They issued a "buy" rating for the company. Finally, Weiss Ratings cut shares of Mattel from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, August 11th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, five have assigned a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, Mattel has an average rating of "Hold" and an average target price of $17.80.

Mattel Price Performance

MAT stock opened at $15.26 on Wednesday. The firm has a 50 day moving average of $14.27 and a 200-day moving average of $15.07. The firm has a market capitalization of $4.36 billion, a P/E ratio of 11.22, a price-to-earnings-growth ratio of 1.43 and a beta of 0.72. Mattel, Inc. has a 12 month low of $12.73 and a 12 month high of $22.48. The company has a current ratio of 1.90, a quick ratio of 1.26 and a debt-to-equity ratio of 1.17.

Mattel (NASDAQ:MAT - Get Free Report) last posted its earnings results on Tuesday, August 4th. The company reported $0.01 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.04 by ($0.03). The firm had revenue of $1.13 billion during the quarter, compared to analysts' expectations of $1.10 billion. Mattel had a return on equity of 16.20% and a net margin of 7.79%.The business's revenue for the quarter was up 10.5% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.19 earnings per share. Mattel has set its FY 2026 guidance at 1.270-1.390 EPS. As a group, sell-side analysts predict that Mattel, Inc. will post 1.32 earnings per share for the current fiscal year.

Mattel Company Profile

Mattel, Inc is a leading global toy company headquartered in El Segundo, California. Founded in 1945 by Harold “Matt” Matson and Elliot and Ruth Handler, the company has grown into a major player in the toy and family products industry. Mattel designs, manufactures, and markets a broad range of toys, games and entertainment products under well-known brands, including Barbie, Hot Wheels, Fisher-Price, American Girl, Thomas & Friends, UNO and Matchbox. In addition to its proprietary labels, Mattel holds licenses with global entertainment franchises, partnering with Disney, Warner Bros., WWE and other studios to create character-driven play experiences.

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