Mattel Inc. (NASDAQ: MAT) stock fell -1.56% on Friday to $22.77 against a previous-day closing price of $23.13. With 2.87 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.32 million shares. During the session, the Leisure company that operates in wider Consumer Cyclical sector, reached to the highest price of $23.27 whereas the lowest price it dropped to was $22.51. The 52-week range on MAT shows that it touched its highest point at $26.99 and its lowest point at $17.94 during that stretch. It currently has a 1-year price target of $31.55. Beta for the stock currently stands at 1.25.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of MAT was down-trending over the past week, with a drop of -0.31%, but this was up by 0.71% over a month. Three-month performance dropped to -12.39% while six-month performance rose 6.60%. The stock gained 4.40% in the past year, while it has gained 5.61% so far this year. A look at the trailing 12-month EPS for MAT yields 3.11 with Next year EPS estimates of 1.94. For the next quarter, that number is 0.74. This implies an EPS growth rate of 614.00% for this year and 29.71% for next year. EPS is expected to grow by 10.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 22.70%.
Float and Shares Shorts:
At present, 352.21 million MAT shares are outstanding with a float of 350.85 million shares on hand for trading. On Jul 14, 2022, short shares totaled 21.5 million, which was 6.10% higher than short shares on Jun 14, 2022. In addition to Mr. Ynon Kreiz as the firm’s Exec. Chairman & CEO, Mr. Richard Dickson serves as its Pres & COO.
Through their ownership of 100.39% of MAT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 72.05% of MAT, in contrast to 27.06% held by mutual funds. Shares owned by individuals account for 1.54%. As the largest shareholder in MAT with 12.83% of the stake, PRIMECAP Management Co. holds 45,237,859 shares worth 45,237,859. A second-largest stockholder of MAT, Edgepoint Investment Group, Inc., holds 36,625,167 shares, controlling over 10.39% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in MAT, holding 31,609,006 shares or 8.97% stake. With a 7.76% stake in MAT, the Vanguard PRIMECAP Fund is the largest stakeholder. A total of 27,357,438 shares are owned by the mutual fund manager. The American Funds Growth Fund of Ame, which owns about 6.25% of MAT stock, is the second-largest Mutual Fund holder. It holds 22,041,666 shares valued at 492.19 million. EdgePoint Global Portfolio holds 6.19% of the stake in MAT, owning 21,803,700 shares worth 486.88 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MAT since 16 analysts follow the stock currently. There are 12 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With MAT analysts setting a high price target of $45.00 and a low target of $24.00, the average target price over the next 12 months is $32.17. Based on these targets, MAT could surge 97.63% to reach the target high and rise by 5.4% to reach the target low. Reaching the average price target will result in a growth of 41.28% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. MAT will report FY 2022 earnings on 02/08/2023. Analysts have provided yearly estimates in a range of $1.60 being high and $1.44 being low. For MAT, this leads to a yearly average estimate of $1.50. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Mattel Inc. surprised analysts by $0.12 when it reported $0.18 EPS against a consensus estimate of $0.06. The surprise factor in the prior quarter was $0.12. Based on analyst estimates, the high estimate for the next quarter is $0.78 and the low estimate is $0.71. The average estimate for the next quarter is thus $0.74.
Dividends & Yield:
In terms of dividends, MAT has a dividend of $1.31 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and MAT currently yields $1.03. In the past year, MAT’s dividend yield has been $1.03, but when looking at the stock over the past five years, its yield has been $5.51.
Summary of Insider Activity:
Insiders traded MAT stock several times over the past three months with 9 Buys and 1 Sells. In these transactions, 92,341 shares were bought while 7,947 shares were sold. The number of buy transactions has increased to 21 while that of sell transactions has risen to 12 over the past year. The total number of shares bought during that period was 1,399,172 while 670,180 shares were sold.