Mattel (NASDAQ:MAT) Sees Large Volume Increase – Should You Buy?

Mattel, Inc. (NASDAQ:MAT) shares saw unusually-strong trading volume on Thursday. Approximately 23,412,209 shares traded hands during mid-day trading, an increase of 388% from the previous session’s volume of 4,798,625 shares. The stock last traded at $14.9660 and had previously closed at $12.66.

Key Stories Impacting Mattel

Here are the key news stories impacting Mattel this week:

• Positive Sentiment: Authentic Brands Group is reportedly in private discussions about acquiring Mattel at a valuation of approximately $6 billion or more. The potential offer represents a substantial premium to Mattel’s recent market value, although no deal has been announced and discussions may not result in a transaction. Reuters report on Authentic Brands Group takeover interest
• Positive Sentiment: The takeover report triggered unusually heavy trading and temporary volatility-related LULD pauses in Mattel shares, indicating strong investor interest and speculation about a possible strategic transaction.
• Neutral Sentiment: Mattel named former Condé Nast CEO and current board member Roger Lynch as chairman and CEO, effective October 2. Lynch’s consumer-media and brand experience could support Mattel’s efforts to expand its entertainment properties, but the abrupt change also creates near-term execution uncertainty. CNBC report on Roger Lynch becoming Mattel CEO
• Negative Sentiment: Outgoing CEO Ynon Kreiz is leaving to become co-CEO of the combined Paramount-Warner Bros. Discovery, while Mattel faces declining Barbie sales and broader brand and holiday-season headwinds. Investors may view his departure as a sign that a turnaround is still needed. New York Post report on Mattel’s leadership change and Barbie sales

Analyst Ratings Changes

MAT has been the subject of several recent research reports. Citigroup 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 Friday, July 10th. The Goldman Sachs Group downgraded shares of Mattel from a “neutral” rating to a “sell” rating and dropped their price target for the stock from $15.00 to $12.00 in a research report on Thursday, July 9th. Roth Capital decreased 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. Odeon Capital Group started coverage on shares of Mattel in a report on Thursday, July 16th. They issued a “buy” rating on the stock. Finally, Argus restated a “buy” rating and set a $22.00 target price on shares of Mattel in a research report on Tuesday, August 25th. One 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 assigned a Sell rating to the company. According to data from MarketBeat, Mattel currently has an average rating of “Hold” and a consensus price target of $17.80.

Mattel Stock Performance

The company has a market capitalization of $4.28 billion, a price-to-earnings ratio of 11.05, a P/E/G ratio of 1.45 and a beta of 0.72. The company has a 50 day moving average price of $14.32 and a 200 day moving average price of $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.

Mattel (NASDAQ:MAT) last announced its quarterly 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 firm had revenue of $1.13 billion during the quarter, compared to the consensus estimate of $1.10 billion. Mattel had a return on equity of 16.20% and a net margin of 7.79%.The firm’s revenue was up 10.5% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.19 EPS. Mattel has set its FY 2026 guidance at 1.270-1.390 EPS. Equities research analysts predict that Mattel, Inc. will post 1.31 earnings per share for the current fiscal year.

Insider Activity at Mattel

In other news, EVP Roberto Isaias sold 39,083 shares of the firm’s stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $15.02, for a total value of $587,026.66. Following the transaction, the executive vice president owned 144,390 shares in the company, valued at $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 available through this hyperlink. 1.90% of the stock is currently owned by insiders.

Institutional Trading of Mattel

Several institutional investors have recently made changes to their positions in MAT. EdgePoint Investment Group Inc. boosted its stake in shares of Mattel by 3.8% in the 1st 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 purchased a new position in Mattel in the second quarter worth $409,540,000. BlackRock Inc. bought a new position in Mattel in the 2nd quarter valued at $363,273,000. Dimensional Fund Advisors LP increased its position in shares of 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. increased its position in shares of Mattel by 30.4% during the 2nd quarter. Alyeska Investment Group L.P. now owns 6,008,450 shares of the company’s stock valued at $83,397,000 after purchasing an additional 1,399,771 shares during the last quarter. Institutional investors own 97.15% of the company’s stock.

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.