Mattel Target of Unusually High Options Trading (NASDAQ:MAT)

Key Points

• Mattel saw unusually heavy options activity, with traders buying 20,308 put options — about 1,604% above its normal daily volume.
• The stock rose slightly to $13.93, but it remains well below its 52-week high of $22.48 and under both its 50-day and 200-day moving averages.
• Analysts have turned more cautious: several firms cut price targets, and Mattel now has a consensus rating of “Hold” with an average target price of $17.33.

Mattel, Inc. (NASDAQ:MAT - Get Free Report) was the target of unusually large options trading on Wednesday. Traders bought 20,308 put options on the company. This represents an increase of approximately 1,604% compared to the typical daily volume of 1,192 put options.

Mattel Price Performance

Shares of NASDAQ:MAT traded up $0.26 during trading on Wednesday, hitting $13.93. 1,022,367 shares of the stock were exchanged, compared to its average volume of 4,904,597. The company has a fifty day moving average price of $14.33 and a two-hundred day moving average price of $16.36. The company has a market cap of $4.05 billion, a PE ratio of 8.81, a P/E/G ratio of 1.21 and a beta of 0.74. The company has a current ratio of 2.06, a quick ratio of 1.50 and a debt-to-equity ratio of 1.11. Mattel has a 12-month low of $12.73 and a 12-month high of $22.48.

Mattel (NASDAQ:MAT - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The company reported ($0.20) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.24) by $0.04. The firm had revenue of $862.17 million during the quarter, compared to the consensus estimate of $808.38 million. Mattel had a return on equity of 18.67% and a net margin of 9.27%.The company's quarterly revenue was up 4.3% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.03) EPS. Mattel has set its FY 2026 guidance at 1.270-1.390 EPS. On average, analysts forecast that Mattel will post 1.35 EPS for the current year.

Analysts Set New Price Targets

Several analysts recently commented on MAT shares. JPMorgan Chase & Co. reduced their price target on shares of Mattel from $14.00 to $13.00 and set an "underweight" rating for the company in a research report on Thursday, April 30th. Citigroup dropped their price objective on shares of Mattel from $16.00 to $15.00 and set a "neutral" rating on the stock in a research note on Friday. Wall Street Zen cut shares of Mattel from a "buy" rating to a "hold" rating in a report on Sunday, May 10th. Weiss Ratings reiterated a "hold (c-)" rating on shares of Mattel in a research note on Thursday, July 2nd. Finally, Wells Fargo & Company lowered their price target on Mattel from $19.00 to $18.00 and set an "overweight" rating on the stock in a report on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, Mattel presently has an average rating of "Hold" and a consensus target price of $17.33.

Hedge Funds Weigh In On Mattel

Institutional investors and hedge funds have recently bought and sold shares of the stock. Redwood Investment Management LLC lifted its holdings in Mattel by 31.3% in the 1st quarter. Redwood Investment Management LLC now owns 72,448 shares of the company's stock worth $1,053,000 after buying an additional 17,268 shares in the last quarter. Empowered Funds LLC boosted its position in Mattel by 26.5% in the 1st quarter. Empowered Funds LLC now owns 37,708 shares of the company's stock valued at $548,000 after buying an additional 7,893 shares during the last quarter. Bank of America Corp DE grew its stake in shares of Mattel by 14.6% during the first quarter. Bank of America Corp DE now owns 1,914,866 shares of the company's stock valued at $27,823,000 after acquiring an additional 244,094 shares in the last quarter. Seven Six Capital Management LLC acquired a new stake in shares of Mattel during the first quarter valued at about $2,110,000. Finally, Kentucky Retirement Systems purchased a new stake in shares of Mattel during the first quarter worth about $406,000. Hedge funds and other institutional investors own 97.15% of the company's stock.

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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