Mattel Sees Unusually Large Options Volume (NASDAQ:MAT)

Key Points

• Mattel saw unusually heavy options activity, with investors purchasing 7,239 call options—about 145% above the average daily volume.
• Authentic Brands Group is reportedly discussing a potential acquisition of Mattel valued at approximately $6 billion or more, though no definitive agreement has been announced. The company also appointed Roger Lynch as chairman and CEO amid concerns about weakening Barbie sales.
• Analysts have a consensus “Hold” rating and an average price target of $17.80. Mattel’s latest quarterly earnings missed expectations, despite revenue rising 10.5% year over year.

Mattel, Inc. (NASDAQ:MAT - Get Free Report) was the target of unusually large options trading activity on Friday. Investors bought 7,239 call options on the stock. This represents an increase of approximately 145% compared to the average daily volume of 2,953 call options.

Analyst Ratings Changes

A number of equities analysts have recently commented on MAT shares. Weiss Ratings downgraded shares of Mattel from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, August 11th. UBS Group reaffirmed a "buy" rating on shares of Mattel in a research report on Thursday. Argus reiterated a "buy" rating and set a $22.00 target price on shares of Mattel in a report on Tuesday, August 25th. Odeon Capital Group began coverage on Mattel in a research report on Thursday, July 16th. They set a "buy" rating for the company. Finally, Roth Capital decreased their price target on Mattel from $16.00 to $15.00 and set a "neutral" rating for the company in a research note on Tuesday, July 14th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, five have assigned a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat.com, Mattel currently has a consensus rating of "Hold" and an average price target of $17.80.

Insider Buying and Selling

In related 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 owned 144,390 shares of the company's stock, valued at approximately $2,168,737.80. This trade represents a 21.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 1.90% of the company's stock.

Institutional Trading of Mattel

Several institutional investors and hedge funds have recently bought and sold shares of MAT. EdgePoint Investment Group Inc. increased its holdings in shares of Mattel by 3.8% during the 1st quarter. EdgePoint Investment Group Inc. now owns 49,140,882 shares of the company's stock worth $714,017,000 after acquiring an additional 1,799,640 shares during the last quarter. Primecap Management Co. CA acquired a new stake in Mattel during the 2nd quarter valued at $409,540,000. BlackRock Inc. acquired a new stake in Mattel during the 2nd quarter valued at $363,273,000. Dimensional Fund Advisors LP boosted its position in Mattel by 7.6% during the first quarter. Dimensional Fund Advisors LP now owns 11,052,845 shares of the company's stock worth $160,591,000 after purchasing an additional 783,102 shares during the period. Finally, Alyeska Investment Group L.P. boosted its position in Mattel by 30.4% during the second quarter. Alyeska Investment Group L.P. now owns 6,008,450 shares of the company's stock worth $83,397,000 after purchasing an additional 1,399,771 shares during the period. Institutional investors own 97.15% of the company's stock.

Mattel News Summary

Here are the key news stories impacting Mattel this week:

• Positive Sentiment: Authentic Brands Group is reportedly in private discussions about acquiring Mattel in a transaction that could value the company at approximately $6 billion or more. The implied valuation is above Mattel’s current market capitalization, raising expectations of a potential takeover premium. The reports have driven significant buying interest and triggered temporary volatility-related trading halts. Reuters article
• Positive Sentiment: Retail traders are reportedly speculating that MAT could trade above $20 if a formal bid emerges, supporting short-term momentum around the potential deal. However, no definitive agreement has been announced. Yahoo Finance article
• Neutral Sentiment: Mattel appointed former Condé Nast CEO Roger Lynch as chairman and CEO, succeeding Ynon Kreiz. Lynch’s media and consumer-brand experience could support Mattel’s licensing and entertainment strategy, but the abrupt transition creates execution uncertainty. Pulse2 article
• Neutral Sentiment: Kreiz is departing to become a senior executive, reportedly co-CEO, of the combined Paramount-Warner Bros. Discovery. His exit removes the leader associated with Mattel’s recent brand and entertainment expansion, while the new role could potentially create future media partnerships. Wall Street Journal article
• Negative Sentiment: The CEO change comes amid reports of deteriorating Barbie sales and broader challenges turning Mattel’s brands into sustained entertainment franchises. Those operating concerns could weigh on the company’s standalone valuation and complicate any takeover negotiations. New York Post article

Mattel Stock Performance

MAT stock traded down $0.32 during trading hours on Friday, reaching $14.72. The stock had a trading volume of 7,595,171 shares, compared to its average volume of 4,900,539. The stock has a 50-day simple moving average of $14.33 and a 200 day simple moving average of $14.44. Mattel has a fifty-two week low of $12.40 and a fifty-two week high of $22.48. The stock has a market capitalization of $4.20 billion, a PE ratio of 10.76, a price-to-earnings-growth ratio of 1.39 and a beta of 0.70. 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 released its quarterly earnings data on Tuesday, August 4th. The company reported $0.01 earnings per share for the quarter, missing the consensus estimate of $0.04 by ($0.03). Mattel had a return on equity of 16.20% and a net margin of 7.79%.The firm had revenue of $1.13 billion for the quarter, compared to analyst estimates of $1.10 billion. During the same quarter in the prior year, the firm earned $0.19 earnings per share. The firm's revenue for the quarter was up 10.5% on a year-over-year basis. Mattel has set its FY 2026 guidance at 1.270-1.390 EPS. Analysts predict that Mattel will post 1.31 EPS for the current fiscal year.

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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