Mattel (NASDAQ:MAT) Shares Gap Down on Disappointing Earnings

Mattel, Inc. (NASDAQ:MAT)’s share price gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $21.06, but opened at $15.08. Mattel shares last traded at $15.6520, with a volume of 12,711,492 shares trading hands.

The company reported $0.39 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.53 by ($0.14). Mattel had a net margin of 7.44% and a return on equity of 20.72%. The company had revenue of $1.77 billion for the quarter, compared to the consensus estimate of $1.85 billion. During the same period last year, the business posted $0.35 earnings per share. The firm’s quarterly revenue was up 7.3% compared to the same quarter last year. Mattel has set its FY 2026 guidance at 1.180-1.300 EPS.

More Mattel News

Here are the key news stories impacting Mattel this week:

• Positive Sentiment: New content and licensing deals could support future revenue (Teenage Mutant Ninja Turtles collaboration with Paramount). Teenage Mutant Ninja Turtles Deal
• Positive Sentiment: Brand extensions and product launches (American Girl 40th anniversary items; new Masters of the Universe movie toys) provide longer‑term monetization opportunities. American Girl Anniversary Masters of the Universe Toys
• Neutral Sentiment: Analyst sentiment is mixed: Zacks upgraded MAT from “strong sell” to “hold,” signaling reduced downside risk but not a clear bullish catalyst. Zacks Upgrade
• Negative Sentiment: Q4 results missed revenue and EPS estimates; management flagged softer holiday demand, discounting, and margin headwinds — the earnings/guidance shock drove a ~25–30% plunge in the stock. Q4 Results & Guidance
• Negative Sentiment: Analysts cut targets and ratings after the print: Goldman lowered its price target to $16 with a “neutral” rating, and JPMorgan downgraded to “underweight” with a $14 target — adding selling pressure. Goldman Sachs PT Cut JPMorgan Downgrade
• Negative Sentiment: Management plans ~ $150M of digital/operational investment and will take full ownership of Mattel163 — strategic for long‑term gaming exposure but a near‑term drag on margins and cash flow. Mattel163 Acquisition

Wall Street Analyst Weigh In

Several research analysts recently commented on the stock. Jefferies Financial Group decreased their target price on shares of Mattel from $25.00 to $19.00 and set a “buy” rating on the stock in a research note on Wednesday. DA Davidson cut their price target on shares of Mattel from $25.00 to $18.00 and set a “buy” rating on the stock in a report on Wednesday. Roth Mkm set a $16.00 price objective on shares of Mattel in a research note on Wednesday. Weiss Ratings reiterated a “hold (c+)” rating on shares of Mattel in a report on Wednesday, December 24th. Finally, Citigroup cut Mattel from a “buy” rating to a “neutral” rating and cut their target price for the stock from $25.00 to $16.00 in a research note on Wednesday. Three research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Mattel presently has an average rating of “Hold” and an average price target of $18.38.

Hedge Funds Weigh In On Mattel

Institutional investors have recently bought and sold shares of the stock. Cornerstone Planning Group LLC lifted its holdings in Mattel by 537.7% in the third quarter. Cornerstone Planning Group LLC now owns 1,352 shares of the company’s stock worth $25,000 after buying an additional 1,140 shares during the period. Quarry LP bought a new position in shares of Mattel in the 3rd quarter worth approximately $28,000. Los Angeles Capital Management LLC purchased a new position in shares of Mattel in the 4th quarter valued at approximately $31,000. Traub Capital Management LLC bought a new stake in shares of Mattel during the second quarter valued at approximately $40,000. Finally, Farther Finance Advisors LLC boosted its position in shares of Mattel by 107.5% during the fourth quarter. Farther Finance Advisors LLC now owns 2,023 shares of the company’s stock valued at $40,000 after purchasing an additional 1,048 shares in the last quarter. 97.15% of the stock is owned by institutional investors.

Mattel Stock Performance

The company has a 50 day moving average of $20.55 and a two-hundred day moving average of $19.10. The company has a debt-to-equity ratio of 1.04, a current ratio of 2.15 and a quick ratio of 1.18. The company has a market capitalization of $4.93 billion, a PE ratio of 12.58, a PEG ratio of 1.87 and a beta of 0.70.

Mattel Company Profile

Mattel, Inc is a leading global toy company headquartered in El Segundo, California. Founded in 1945 by Harold “Matt” Matson and Elliot and Ruth Handler, the company has grown into a major player in the toy and family products industry. Mattel designs, manufactures, and markets a broad range of toys, games and entertainment products under well-known brands, including Barbie, Hot Wheels, Fisher-Price, American Girl, Thomas & Friends, UNO and Matchbox. In addition to its proprietary labels, Mattel holds licenses with global entertainment franchises, partnering with Disney, Warner Bros., WWE and other studios to create character-driven play experiences.