The Mattel, Inc. (NASDAQ:MAT) bulls won the day, but the reality is that the 0.05 points or 0.36 percent advance gave very little definitive technical indication of where the stock could be headed next. On 03 December, the shares traded at $13.95 with a light trade volume of 3.728 million shares. After opening the session at $14, the shares went as high as $14.29 and as low as $13.83, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $4.82 billion and now has 345.29 million shares outstanding. Mattel, Inc. (MAT) stock has lost -2.24 percent of market value in 21 trading days.
MAT stock has a trailing 3-year beta of 1.05, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$2.71 a share in the trailing twelve months. The stock’s value has fallen -9.3 percent year to date (YTD) against a decline of -19.18 percent in 12 month’s time. The company’s shares still trade -26.11 percent away from its 1-year high of $18.88 and 14.25 percent up from 52-week low of $12.21. The average consensus rating on the company is 2.8, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.
Mattel, Inc. (MAT) will probably climb 4.23 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $21-month high price target. This represents a whopping 50.54 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $15, which represents a return potential of 7.53 percent when compared to the closing price of the stock of $13.95 on Monday, December 03. The lowest price target for the stock is $10 — slightly more than -28.32 percent from MAT’s current share price.
History has shown that shares in Mattel, Inc. have gone down on 18 different earnings reaction days and are predicted to add 0.05 percent when the company reports upcoming earnings. Investors will get their next glimpse of MAT’s Q4 earnings on February 01. Analysts are forecasting revenue to suffer decline of -10.1 percent to $1.45B in the fiscal fourth quarter, while earnings are seen soaring by nearly -83.33 percent to -$0.12 per share. It earned $0.18 per share, worse than the $0.2, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $1.44B, worse than the $1.49B analysts expected. Earnings are estimated to increase by -466.8 percent this year, 106.4 percent next year and continue to increase by 10 percent annually for the next 5 years.
Let’s take a look at some insider activity at Mattel, Inc. (NASDAQ:MAT) and see the pattern. The earliest insider trade took place on 08/01/2017. Georgiadis Mary Margaret Hasti gathered a total of 12.66 thousand shares of company at average share price of $19.61. The total for the purchase was set at $248.26 thousand. After this transaction, the CEO account balance stood at 116.79 thousand shares. The stock lost -28.86 percent since that insider purchase. On 04/24/2017, Scarborough Dean A, Director, purchased 47 thousand shares at a price per share of $21.95. This added 1.03 million shares to the insider’s fortune and the stock saw a -36.45 percent retreat in value since the news became public. This transaction left 77.57 thousand shares in the Director account.
On 02/13/2017, Executive Chairman Sinclair Christopher A performed a purchase transaction worth $249.57 thousand. This purchase at $25.97 each has added 9.61 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -46.28 percent decrease since the transaction was reported. The insider now is left with 95.59 thousand shares remaining in the account. Gros Richard R, who performs the EVP, Chief HR Officer job, bought 9.61 thousand shares for $250.05 thousand. The acquisition occurred on 02/07/2017 was priced at $26.02 per share. The share price plunged -46.39 percent since the reporting date. Gros Richard R now left with a stake of 14.74 thousand MAT stock worth $205.68 thousand after the insider buying.
The stock is currently hovering around the first support level of $13.76. Below this, the next support is placed in the zone of $13.56. Till the time, the MAT stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 53.14 on daily chart, which may remain a cause for concern. If the price breaks below $13.56 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $14.22 mark may result into a pull-back move towards $14.48 level.
Shares of Mattel, Inc. (MAT) are trading at a P/E ratio of 22.45 times earnings reported for the past 12 months. The industry MAT operates in has an average P/E of 33.78. Its P/E ratio went as low as 16.49X and as high as 29.95 over the 5-year span.Further, it is sporting a 1.05 on the Price-to-Sales ratio. Compare this with the industry average P/S of 9.6. 34.4 percent is the gross profit margin for Mattel, Inc. and operating margin sits at -13 percent. Along with this, the net profit margin is -18 percent.