Mattel Inc. (MAT) Lifted to Buy at Zacks Investment Research
Mattel Inc. (NASDAQ:MAT) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Wednesday. The brokerage currently has a $35.00 price target on the stock. Zacks Investment Research’s target price would indicate a potential upside of 11.01% from the company’s current price.
According to Zacks, “Mattel’s increased focus on improving its point of sale through introduction of more products, brand innovation and strategic initiatives like entering new categories and strengthening of the Girls portfolio bode well. We believe the company’s renewed contracts for toy franchisees of Cars 3 and Toy Story 4, set to release in 2017 and 2018, respectively, will significantly boost revenues. Also, efforts to achieve cumulative cost savings and enhanced margins are added positives. Estimates have been stable lately ahead of the company’s third quarter earnings release and the company has mixed record of earnings surprises in recent quarters. However, it will take time for all the brands to show consistent improvement. Moreover, negative currency translation remains a major headwind. Also, costs related to sales boosting initiatives may keep profits under pressure while macroeconomic concerns might continue to hurt revenues.”
MAT has been the topic of a number of other reports. Vetr raised Mattel from a “buy” rating to a “strong-buy” rating and set a $41.14 target price on the stock in a research report on Monday, August 29th. B. Riley reaffirmed a “buy” rating and set a $38.00 target price on shares of Mattel in a research report on Tuesday, July 26th. Citigroup Inc. upped their target price on Mattel from $36.00 to $38.00 and gave the stock a “buy” rating in a research report on Monday, August 15th. Jefferies Group set a $36.00 target price on Mattel and gave the stock a “buy” rating in a research report on Thursday, July 21st. Finally, Monness Crespi & Hardt raised Mattel from a “neutral” rating to a “buy” rating and set a $37.00 target price on the stock in a research report on Monday. Six equities research analysts have rated the stock with a hold rating, eleven have given a buy rating and two have assigned a strong buy rating to the stock. The company currently has an average rating of “Buy” and a consensus price target of $35.07.
Shares of Mattel (NASDAQ:MAT) traded down 0.16% during midday trading on Wednesday, reaching $31.48. The company’s stock had a trading volume of 729,574 shares. The firm has a 50-day moving average of $33.00 and a 200-day moving average of $32.33. Mattel has a one year low of $19.45 and a one year high of $34.76. The stock has a market cap of $10.72 billion, a PE ratio of 31.17 and a beta of 0.93.
Mattel (NASDAQ:MAT) last issued its quarterly earnings results on Wednesday, July 20th. The company reported ($0.02) earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.05) by $0.03. Mattel had a return on equity of 16.23% and a net margin of 6.17%. The firm had revenue of $957.30 million for the quarter, compared to analyst estimates of $937.85 million. During the same period in the previous year, the firm earned $0.01 earnings per share. The company’s revenue was down 3.1% compared to the same quarter last year. On average, analysts forecast that Mattel will post $1.34 EPS for the current year.
The company also recently declared a quarterly dividend, which was paid on Friday, September 16th. Stockholders of record on Tuesday, August 23rd were given a dividend of $0.38 per share. The ex-dividend date of this dividend was Friday, August 19th. This represents a $1.52 dividend on an annualized basis and a dividend yield of 4.82%. Mattel’s dividend payout ratio is presently 149.02%.
In other news, EVP Geoffrey H. Walker sold 7,128 shares of the company’s stock in a transaction on Tuesday, August 30th. The stock was sold at an average price of $33.57, for a total transaction of $239,286.96. Following the transaction, the executive vice president now owns 39,348 shares of the company’s stock, valued at approximately $1,320,912.36. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 0.88% of the company’s stock.
Hedge funds have recently modified their holdings of the company. Norges Bank acquired a new stake in Mattel during the fourth quarter valued at $84,280,000. Chevy Chase Trust Holdings Inc. boosted its stake in Mattel by 4.6% in the first quarter. Chevy Chase Trust Holdings Inc. now owns 287,809 shares of the company’s stock valued at $9,676,000 after buying an additional 12,723 shares during the last quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund boosted its stake in Mattel by 13.6% in the first quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 78,607 shares of the company’s stock valued at $2,643,000 after buying an additional 9,428 shares during the last quarter. Exxonmobil Investment Management Inc. TX boosted its stake in Mattel by 8.8% in the first quarter. Exxonmobil Investment Management Inc. TX now owns 82,783 shares of the company’s stock valued at $2,783,000 after buying an additional 6,720 shares during the last quarter. Finally, Acadian Asset Management LLC acquired a new stake in Mattel during the first quarter valued at $1,163,000. 95.49% of the stock is currently owned by institutional investors and hedge funds.
Mattel Company Profile
Mattel, Inc manufactures and markets a range of toy products around the world. The Company’s segments are North America; International and American Girl. Its portfolio of brands and products are grouped into approximately four major brand categories, including Mattel Girls & Boys Brands, Fisher-Price Brands, American Girl Brands and Construction and Arts & Crafts Brands.
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