It’s Time to Buy the Dip in Mattel Inc. [MAT] Stock

Mattel Inc. [MAT] stock is down -0.51 while the S&P 500 has risen 0.66% on Thursday, 12/03/20. While at the time of this article, MAT ATR is sitting at 0.51, with the beta value at 1.38. This stock’s volatility for the past week remained at 2.65%, while it was 3.63% for the past 30-day period. MAT has fallen -$0.08 from the previous closing price of $15.57 on volume of 0.96 million shares.

On 3, December 2020, Mattel Announces Multi-Year Global Licensing Agreement with PGS Entertainment and Technicolor Animation for “Gus – The Itsy Bitsy Knight”. According to news published on Yahoo Finance, Mattel, Inc. (NASDAQ: MAT) today announced that it has entered into a multi-year global licensing agreement with PGS Entertainment, the award-winning kids entertainment distributor, for the upcoming animated preschool series, produced and owned by Technicolor Animation Productions, “Gus – The Itsy Bitsy Knight,” scheduled to premiere on broadcasters across the globe in 2021. Through this agreement, Mattel has the licensing rights to create a full line of Fisher-Price toys based on the property, including figures, playsets, plush, vehicles and more, which is expected to launch in 2022.

Analyst Birdseye View:

The most recent analyst activity for Mattel Inc. [NASDAQ:MAT] stock was on November 06, 2020, when it was Upgrade with a Buy rating from UBS, which also raised its 12-month price target on the stock from $12 to $18. Before that, on November 09, 2020, Jefferies Recapitulated a Hold rating and elevated its amount target to $15. On October 23, 2020, DA Davidson Upgrade a Buy rating and boosted its price target on this stock to $18. On October 05, 2020, Stifel Reiterated a Hold rating and increased its price target from $12 to $12.50. On June 03, 2020, Jefferies Upgrade a Buy rating and increased its price target to $13. On April 17, 2020, Wolfe Research Initiated an Outperform rating and boosted its amount on this stock to $11. On April 16, 2020, Berenberg Initiated a Hold rating and boosted its target amount on this stock to $9.50. KeyBanc Capital Markets elevated its amount target by recapitulating a higher weight for this stock.

In the past 52 weeks of trading, this stock has oscillated between a low of $6.53 and a peak of $16.03. Right now, the middling Wall Street analyst 12-month amount mark is $15.00. At the most recent market close, shares of Mattel Inc. [NASDAQ:MAT] were valued at $15.49. According to the average price forecast, investors can expect a potential return of -5.87%.

FUNDAMENTAL ANALYSIS

Mattel Inc. [NASDAQ:MAT] most recently reported quarterly sales of 1.63 billion, which represented growth of 10.10%. This publicly-traded organization’s revenue is $187,690 per employee, while its income is -$8,896 per employee. This company’s Gross Margin is currently 48.00%, its Operating Margin is 5.80%, its Pretax Margin is -3.51, and its Net Margin is -4.74. Continuing to look at profitability, this corporation’s Return on Assets, Equity, Whole Principal & invested Principal is sitting at -4.04, -37.18, 3.31 and -6.00 respectively.

The Principal structure of this organization shows its whole liability to whole principal at 86.65 and the whole liability to whole assets at 59.93. It shows enduring liability to the whole principal at 84.64 and enduring liability to assets at 0.59 while looking for an extended time period.

Readers are usually of view to make a close observation to the indicators that support and make resistance before moving to any particular stock. As of now, the company’s stock is sitting at 15.43 points at 1st support level, the second support level is making up to 15.28. But as of 1st resistance point, this stock is sitting at 15.76 and at 15.94 for 2nd resistance point.

Mattel Inc. [MAT] reported its earnings at $0.95 per share in the fiscal quarter closing of 9/29/2020. The Analysts for Wall Street were expecting to report its earnings at $0.39/share signifying the difference of 0.56 and 143.60% surprise value. Comparing the previous quarter ending of 6/29/2020, the stated earnings were -$0.26 calling estimates for -$0.34/share with the difference of 0.08 depicting the surprise of 23.50%.

Important Ratio’s To Watch

Meanwhile, turning our focus to liquidity, the Current Ratio for Mattel Inc. [NASDAQ:MAT] is 1.60. Likewise, the Quick ratio is also the same, showing Cash ratio at 0.49. Now if looking for a valuation of this stock’s amount to sales ratio it’s 1.04 and it’s amount to book ratio is 9.56.