Mattel (NASDAQ:MAT) Shares Gap Down Following Weak Earnings

Key Points

• Mattel's shares gapped down from $18.82 to $17.55 following a disappointing earnings announcement, reporting an EPS of $0.89, which missed analysts' expectations of $1.05.
• The company's revenue decreased by 5.9% year-over-year, totaling $1.74 billion compared to the expected $1.86 billion.
• Analysts remain divided on Mattel, with five rating it as a "Buy" and four as a "Hold," while the overall consensus gives the stock a "Moderate Buy" rating with a target price of $24.38.

Shares of Mattel, Inc. (NASDAQ:MAT - Get Free Report) gapped down before the market opened on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $18.82, but opened at $17.55. Mattel shares last traded at $18.32, with a volume of 1,933,145 shares.

The company reported $0.89 EPS for the quarter, missing analysts' consensus estimates of $1.05 by ($0.16). The company had revenue of $1.74 billion for the quarter, compared to analyst estimates of $1.86 billion. Mattel had a net margin of 9.87% and a return on equity of 25.19%. The business's revenue was down 5.9% on a year-over-year basis. During the same period in the prior year, the company posted $1.14 EPS. Mattel has set its FY 2025 guidance at 1.540-1.660 EPS.

Analyst Ratings Changes

Several analysts recently weighed in on the company. JPMorgan Chase & Co. increased their target price on Mattel from $23.00 to $25.00 and gave the company a "neutral" rating in a research note on Thursday, July 24th. Wall Street Zen downgraded Mattel from a "buy" rating to a "hold" rating in a research note on Friday, June 27th. Weiss Ratings restated a "hold (c)" rating on shares of Mattel in a research note on Wednesday, October 8th. Finally, Roth Capital set a $22.00 target price on Mattel and gave the company a "neutral" rating in a research note on Friday, July 11th. Five research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $24.38.

Institutional Trading of Mattel

Hedge funds have recently modified their holdings of the company. Trust Co. of Vermont lifted its position in shares of Mattel by 995.8% in the 1st quarter. Trust Co. of Vermont now owns 1,315 shares of the company's stock worth $26,000 after acquiring an additional 1,195 shares during the period. Parallel Advisors LLC lifted its position in shares of Mattel by 189.9% in the 2nd quarter. Parallel Advisors LLC now owns 1,609 shares of the company's stock worth $32,000 after acquiring an additional 1,054 shares during the period. Traub Capital Management LLC bought a new stake in shares of Mattel in the 2nd quarter worth approximately $40,000. IFP Advisors Inc lifted its position in shares of Mattel by 90.6% in the 2nd quarter. IFP Advisors Inc now owns 2,215 shares of the company's stock worth $44,000 after acquiring an additional 1,053 shares during the period. Finally, Employees Retirement System of Texas acquired a new position in shares of Mattel in the 2nd quarter worth approximately $55,000. Institutional investors own 97.15% of the company's stock.

Mattel Stock Performance

The company has a current ratio of 1.62, a quick ratio of 1.12 and a debt-to-equity ratio of 0.80. The stock has a fifty day moving average price of $17.86 and a 200-day moving average price of $17.98. The firm has a market capitalization of $5.91 billion, a price-to-earnings ratio of 11.88, a PEG ratio of 2.33 and a beta of 0.68.

About Mattel

Mattel, Inc, a toy and family entertainment company, designs, manufactures, and markets toys and consumer products in North America, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. The company operates through North America, International, and American Girl segments. It offers dolls and accessories, as well as books, content, gaming, and lifestyle products for children under the Barbie, American Girl, Disney Princess and Disney Frozen, Monster High, and Polly Pocket brands; die-cast vehicles, tracks, playsets, and accessories for kids, adults, and collectors under the Hot Wheels, Hot Wheels Monster Trucks, Hot Wheels Mario Kart, Matchbox, and Cars brand names; and infant, toddler, and preschool products comprising content, toys, live events, and other consumer products under the Fisher-Price, Little People and Imaginext, and Thomas & Friends, and Power wheels brands.

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