Mattel (NASDAQ:MAT) Shares Gap Up - Still a Buy?

Key Points

• Mattel shares opened higher, rising from a prior close of $15.93 to $16.42 before trading near $16.16. The stock’s average analyst rating is “Hold,” with an average price target of $17.80.
• Analyst sentiment is mixed: Goldman Sachs and Weiss Ratings downgraded the stock to “Sell,” while UBS and Odeon Capital maintained or initiated “Buy” ratings.
• Mattel’s latest quarter showed 10.5% year-over-year revenue growth to $1.13 billion, but EPS of $0.01 missed estimates of $0.04. An executive also sold 39,083 shares, while institutional investors own 97.15% of the stock.

Mattel, Inc. (NASDAQ:MAT - Get Free Report)'s share price gapped up before the market opened on Wednesday. The stock had previously closed at $15.93, but opened at $16.42. Mattel shares last traded at $16.1570, with a volume of 1,852,696 shares.

Analyst Upgrades and Downgrades

A number of research firms recently commented on MAT. Roth Capital lowered their price objective on shares of Mattel from $16.00 to $15.00 and set a "neutral" rating for the company in a research report on Tuesday, July 14th. The Goldman Sachs Group downgraded shares of Mattel from a "neutral" rating to a "sell" rating and dropped their target price for the stock from $15.00 to $12.00 in a report on Thursday, July 9th. UBS Group reiterated a "buy" rating on shares of Mattel in a report on Thursday, October 1st. Weiss Ratings downgraded shares of Mattel from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Tuesday, August 11th. Finally, Odeon Capital Group initiated coverage on shares of Mattel in a report on Thursday, July 16th. They set a "buy" rating on the stock. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, five have assigned a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $17.80.

Mattel Stock Up 2.4%

The firm's 50-day simple moving average is $14.39 and its 200 day simple moving average is $14.44. The company has a debt-to-equity ratio of 1.17, a quick ratio of 1.26 and a current ratio of 1.90. The stock has a market capitalization of $4.66 billion, a P/E ratio of 11.99, a PEG ratio of 1.76 and a beta of 0.70.

Mattel (NASDAQ:MAT - Get Free Report) last announced 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 net margin of 7.79% and a return on equity of 16.20%. The company had revenue of $1.13 billion during the quarter, compared to the consensus estimate of $1.10 billion. During the same quarter in the previous year, the business earned $0.19 EPS. Mattel's revenue was up 10.5% on a year-over-year basis. Mattel has set its FY 2026 guidance at 1.270-1.390 EPS. As a group, research analysts expect that Mattel, Inc. will post 1.31 EPS for the current year.

Insider Transactions at Mattel

In other Mattel news, EVP Roberto Isaias sold 39,083 shares of the company's stock in a transaction on Monday, August 31st. The shares were sold at an average price of $15.02, for a total transaction of $587,026.66. Following the sale, the executive vice president directly owned 144,390 shares of the company's stock, valued at approximately $2,168,737.80. This represents a 21.30% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Company insiders own 1.90% of the company's stock.

Institutional Investors Weigh In On Mattel

Hedge funds have recently bought and sold shares of the company. EdgePoint Investment Group Inc. increased its position in Mattel by 3.8% during the first quarter. EdgePoint Investment Group Inc. now owns 49,140,882 shares of the company's stock worth $714,017,000 after buying an additional 1,799,640 shares during the last quarter. Primecap Management Co. CA bought a new position in shares of Mattel during the 2nd quarter worth approximately $409,540,000. BlackRock Inc. bought a new position in shares of Mattel during the 2nd quarter worth approximately $363,273,000. Dimensional Fund Advisors LP lifted its holdings in Mattel by 7.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 11,052,845 shares of the company's stock valued at $160,591,000 after purchasing an additional 783,102 shares during the last quarter. 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. 97.15% of the stock is currently owned by institutional investors and hedge funds.

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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