Mattel (NASDAQ:MAT) Reaches New 12-Month Low - Should You Sell?

Key Points

• Mattel shares fell to a new 52-week low of $12.53, below their 50-day and 200-day moving averages, amid recent analyst downgrades.
• Analyst sentiment is mixed, with a consensus “Hold” rating and a $17.80 average price target; Goldman Sachs and Weiss Ratings rated the stock “Sell,” while others maintained “Buy” ratings.
• Mattel’s latest quarterly EPS of $0.01 missed expectations, although revenue rose 10.5% year over year to $1.13 billion. An executive also sold 39,083 shares, reducing his position by 21.3%.

Shares of Mattel, Inc. (NASDAQ:MAT - Get Free Report) reached a new 52-week low during mid-day trading on Wednesday. The company traded as low as $12.53 and last traded at $12.9040, with a volume of 1725320 shares trading hands. The stock had previously closed at $13.22.

Analyst Ratings Changes

Several analysts have recently commented on MAT shares. The Goldman Sachs Group downgraded Mattel from a "neutral" rating to a "sell" rating and lowered their price objective for the stock from $15.00 to $12.00 in a research note on Thursday, July 9th. Odeon Capital Group initiated coverage on Mattel in a research report on Thursday, July 16th. They set a "buy" rating on the stock. Citigroup decreased their price target on Mattel from $16.00 to $15.00 and set a "neutral" rating for the company in a report on Friday, July 10th. Argus reissued a "buy" rating and issued a $22.00 price target on shares of Mattel in a research report on Tuesday, August 25th. Finally, Weiss Ratings cut Mattel from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, August 11th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, five have issued a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $17.80.

Mattel Stock Performance

The company's 50-day simple moving average is $14.35 and its 200 day simple moving average is $14.47. The stock has a market cap of $3.62 billion, a P/E ratio of 9.33, a PEG ratio of 1.47 and a beta of 0.72. 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 released 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 business had revenue of $1.13 billion during the quarter, compared to the consensus estimate of $1.10 billion. Mattel had a net margin of 7.79% and a return on equity of 16.20%. The business's revenue was up 10.5% on a year-over-year basis. During the same period 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 expect that Mattel, Inc. will post 1.31 EPS for the current fiscal year.

Insider Activity

In other news, EVP Roberto Isaias sold 39,083 shares of the firm's stock in a transaction on Monday, August 31st. The stock was sold at an average price of $15.02, for a total transaction of $587,026.66. Following the completion of the sale, 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 SEC, which is available through the SEC website. 1.90% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Mattel

Institutional investors and hedge funds have recently bought and sold shares of the company. Primecap Management Co. CA purchased a new stake in Mattel during the second quarter valued at about $409,540,000. BlackRock Inc. purchased a new position in shares of Mattel in the second quarter worth about $363,273,000. Norges Bank purchased a new position in shares of Mattel in the fourth quarter worth about $49,182,000. Bank of America Corp DE bought a new stake in shares of Mattel in the second quarter valued at approximately $33,498,000. Finally, EdgePoint Investment Group Inc. raised its position in shares of Mattel by 3.8% in the first quarter. EdgePoint Investment Group Inc. now owns 49,140,882 shares of the company's stock valued at $714,017,000 after purchasing an additional 1,799,640 shares during the period. 97.15% of the stock is owned by institutional investors.

Mattel Company Profile

Mattel, Inc is a global toy and entertainment company that designs, manufactures and markets toys, games and consumer products. Its portfolio includes well-known brands such as Barbie, Hot Wheels, Fisher-Price, Matchbox, American Girl, UNO, Thomas & Friends and Masters of the Universe.

The company also develops entertainment and experiences based on its intellectual property, including content, films, television projects, digital games, live events and location-based attractions. Mattel generates additional business through licensing its brands for products and services produced by other companies.

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

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