Mattel Inc. (MAT) Raised 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 presently has a $35.00 target price on the stock. Zacks Investment Research’s price objective 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.”
A number of other analysts have also weighed in on the stock. Vetr upgraded shares of Mattel from a “sell” rating to a “buy” rating and set a $36.30 target price on the stock in a research report on Monday, August 15th. MKM Partners restated a “hold” rating and issued a $33.00 target price on shares of Mattel in a research report on Tuesday, July 12th. B. Riley restated a “buy” rating and issued a $38.00 target price on shares of Mattel in a research report on Wednesday, May 25th. Monness Crespi & Hardt upgraded shares of 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. Finally, Piper Jaffray Cos. restated a “neutral” rating and issued a $30.00 target price (up previously from $28.00) on shares of Mattel in a research report on Friday, July 22nd. Six investment analysts have rated the stock with a hold rating, eleven have issued a buy rating and two have assigned a strong buy rating to the company’s stock. The stock has an average rating of “Buy” and a consensus price target of $35.07.
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Shares of Mattel (NASDAQ:MAT) traded down 0.333% during mid-day trading on Wednesday, hitting $31.425. 751,222 shares of the company’s stock traded hands. Mattel has a 52 week low of $19.45 and a 52 week high of $34.76. The firm has a 50-day moving average of $33.00 and a 200 day moving average of $32.33. The company has a market cap of $10.70 billion, a PE ratio of 31.114 and a beta of 0.93.
Mattel (NASDAQ:MAT) last announced its earnings results on Wednesday, July 20th. The company reported ($0.02) earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of ($0.05) by $0.03. Mattel had a net margin of 6.17% and a return on equity of 16.23%. The firm had revenue of $957.30 million for the quarter, compared to analyst estimates of $937.85 million. During the same quarter in the prior year, the business posted $0.01 EPS. The business’s revenue was down 3.1% compared to the same quarter last year. Equities research analysts predict that Mattel will post $1.34 EPS for the current year.
The business also recently declared a quarterly dividend, which was paid on Friday, September 16th. Shareholders of record on Tuesday, August 23rd were paid a $0.38 dividend. This represents a $1.52 annualized dividend and a yield of 4.82%. The ex-dividend date of this dividend was Friday, August 19th. Mattel’s dividend payout ratio (DPR) is currently 149.02%.
In other Mattel news, EVP Geoffrey H. Walker sold 7,128 shares of Mattel stock in a transaction on Tuesday, August 30th. The shares were sold at an average price of $33.57, for a total value of $239,286.96. Following the completion of the sale, the executive vice president now directly owns 39,348 shares of the company’s stock, valued at $1,320,912.36. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. 0.88% of the stock is currently owned by company insiders.
Several hedge funds and other institutional investors have recently modified their holdings of the stock. Bollard Group LLC boosted its position in Mattel by 1.2% in the second quarter. Bollard Group LLC now owns 4,078 shares of the company’s stock valued at $128,000 after buying an additional 48 shares during the period. Mizuho Asset Management Co. Ltd. boosted its position in Mattel by 130.4% in the second quarter. Mizuho Asset Management Co. Ltd. now owns 4,258 shares of the company’s stock valued at $133,000 after buying an additional 2,410 shares during the period. Checchi Capital Advisers LLC boosted its position in Mattel by 4.2% in the second quarter. Checchi Capital Advisers LLC now owns 5,573 shares of the company’s stock valued at $174,000 after buying an additional 226 shares during the period. IFP Advisors Inc boosted its position in Mattel by 67.1% in the first quarter. IFP Advisors Inc now owns 5,265 shares of the company’s stock valued at $177,000 after buying an additional 2,114 shares during the period. Finally, Tower Research Capital LLC TRC boosted its position in Mattel by 268.4% in the second quarter. Tower Research Capital LLC TRC now owns 5,688 shares of the company’s stock valued at $178,000 after buying an additional 4,144 shares during the period. Hedge funds and other institutional investors own 95.49% of the company’s stock.
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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