Looking For Growth Signs for Mattel, Inc. (MAT)

On December 03, 2019, Mattel, Inc. (NASDAQ:MAT) shares lost -2.58% or -0.29 points to close at $11.16 with a thin trading volume of 4.043 million shares. It opened the trading session at $11.2, the shares rose to $11.21 and dropped to $10.83, the range by which the price of stock traded the whole day. The company now has a market cap of $3.91 billion and currently has 349.97 million outstanding shares. Mattel, Inc. (MAT) stock has plunged -6.14 percent of market value in 21 trading days.

MAT stock’s trailing 3-year beta is 1.65, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was -$0.56 share in the trailing 52 weeks. The stock’s value surged 11.71 percent year to date (YTD) compared to a decline of -19.71 percent in 52 week’s period. The firm’s shares are still trading -35.36 percent below its 1-year high of $17.26 and 23.18 percent up from 52-week low of $9.06. The average consensus ranking on the company is 2.7, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

Mattel, Inc. (MAT) is most likely going to rise 23.57 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $20-month high price target. This represents a whopping 79.21 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $13, which means a return possibility of 16.49 percent in comparison with the closing price of the stock of $11.16 on December 03. The lowest price set for the stock is $10 — just above -10.39 percent from MAT share price now.

Past records have indicated that shares in Mattel, Inc. declined on 20 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of MAT’s Q4 earnings on January 31. Analysts are predicting revenue to suffer decline of -1.8 percent to $1.5B in the financial fourth quarter, while EPS will soar by about -75 percent to $0.01 per share. In the last quarter, it earnings of -$0.44 per share came worse than the $0.19057, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $1.52B, topping the $1.44B analysts had expected. Earnings are seen to rise by 54.7 percent this year, 132.5 percent in the coming year and the trend continues by 10 percent every year in the next 5 years.

Let’s take a glimpse at some insider activity at Mattel, Inc. (NASDAQ:MAT) and observe the pattern. The earliest insider trade happened on 02/22/2019. DOLAN MICHAEL J gathered a total of 30 thousand shares of the firm at average share price of $13.96. The total amount for the purchase was set at $418.8 thousand. On completing this exchange, the Director account balance was 130.92 thousand shares. The stock lost -20.06 percent from that insider purchase. On 02/22/2019, EUTENEUER JOSEPH J, CFO, did a purchase of 20 thousand shares at a price of $13.95 per share. This increased 279 thousand shares to the insider’s fortune and the stock experienced a -20 percent retreat in price since the news became public. This exchange saw 55.23 thousand shares get into the CFO account.

On 02/21/2019, Chairman & CEO Kreiz Ynon recorded a purchase transaction valued at $1 million. The purchase at $14.02 a share has added 71.43 thousand shares into the insider’s portfolio position. Meanwhile, shares price witnessed -20.4 percent decrease since the transaction reporting date. The company insider is left with 71.43 thousand shares remaining in the account. Lynch Roger, who works as Director at the company, performed a purchase of 8 thousand shares in a transaction worth $108 thousand. The acquisition recorded on 02/19/2019 was priced at $13.5 per share. The stock price plunged -17.33 percent since the transaction. Lynch Roger currently holds a stake of 8 thousand in MAT stock which is worth $89.28 thousand after the insider buying.

The stock is lingering around the initial support level of $10.92. After this, the following support is at the zone of $10.69. Up until the time the MAT stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 41.95 on the daily chart, and this may be a cause for concern. In case the price goes below $10.69 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $11.3 level may cause a pull-back move approaching $11.45 mark.

The industry MAT deals with has an average P/E of 26. Its P/B ratio is standing at 8.5X compared to the 2.9 industry average. It is additionally sporting a 0.8 on the Price-to-Sales ratio, compared to the industry’s P/S average of 1.6. Mattel, Inc. has a 43.4% gross profit margin, with its operating margin around -3.5%. Alongside this, the company’s net profit margin currently stands at -8.7%.