The State Board of Administration of Florida Retirement System has recently announced that they have reduced their stake in Mattel, Inc. (NASDAQ:MAT) by 4.8% in the 4th quarter. According to their most recent Form 13F filing with the Securities and Exchange Commission (SEC), the institutional investor held 366,490 shares of the company’s stock after selling off 18,520 shares during this time period. With a total value worth $6,538,000 at the end of the same reporting period, it can be seen that this move raises many questions about where Mattel is headed in terms of future growth.
Mattel (NASDAQ:MAT) reported its quarterly earnings results on April 26th, showing an earning per share (EPS) of ($0.24) for the quarter. This result was slightly better than what analysts had anticipated as it beat consensus estimates of ($0.26) by $0.02. Furthermore, Mattel’s revenue for the same quarter was also higher than expectations at $814.60 million compared to analyst estimates of $740.74 million.
While these numbers hold some hope for Mattel, it should be noted that its business’s quarterly revenue was down by a staggering 21.8% on a year-over-year basis; meanwhile, during the corresponding period last year, Mattel posted $0.08 EPS- a stark contrast to this year’s ongoing losses.
Overall, sell-side analysts anticipate that Mattel will post an EPS of around 1.16 for this current year; although things may look relatively stable for Mattel at present-thanks to prudent cost-cutting strategies-the real question remains about how much staying power they have left in terms of long-term financial stability and future growth prospects.
Currently trading at just above $15 per share-and with troubling financials-Mattel’s future remains up in arms; however-only time will tell how the company fares, especially in these alarming and uncertain economic times. Nevertheless, with sound financial management and a solid growth strategy in place, it is still possible for Mattel to recover from its current financial slump and get back on a sustainable growth trajectory.
Institutional Investors Strongly Invest in Mattel Inc.
Mattel Inc., an American multinational toy manufacturing company, has recently gained attention from various large investors who have either added to or reduced their stakes in the company. As of May 11, 2023, Keybank National Association OH owned 30,020 shares of Mattel, valued at $536,000, after acquiring an additional 2,090 shares in the last quarter. Similarly, Kingsview Wealth Management LLC purchased a new stake in the third quarter of 2022 with a value of approximately $1.87 million.
Furthermore, Royal Bank of Canada lifted its position in shares of Mattel by 174.1% since the third quarter of 2022. The bank now maintains ownership of approximately 666,431 shares valued at $12.62 million after acquiring an additional 423,319 shares in the last quarter. Other notable institutional investors that have increased their stakes include Profund Advisors LLC and Dimensional Fund Advisors LP.
With such substantial investments being made by prominent institutions in Mattel’s stock market performance across NASDAQ:MAT over time will be worth examining closely to determine whether the company can continue to deliver its projected earnings per share (EPS) growth rate of over three times its industry average PEG ratio.
Currently ranked as one of America’s largest toy makers based on quarterly financials and market capitalization valuations from May 11th trading data show that NASDAQ:MAT opened at $18.30 on Thursday whereas its year low was at $15.36 and its year high was seen at $26.58 over a period between July 2022-June2013 . At present Mattel’s fifty day simple moving average is $17.36 and its two hundred day simple moving average is currently calculated at $18.09- both reflecting steady albeit slow growth for this industry giant.
In terms of ratios considering investing strategies for Nasdaq :MAT stock purchase potentialities. The company’s current ratio is healthy at 2.44 while its quick ratio of 1.45 also indicates strong liquidity ratios, but what about the debt-to-equity ratio of 1.20? Will this weigh heavy on investors’ decision-making regarding investing in Mattel Inc.? Only time will tell as the market now needs to analyze Mattel’s monthly financial statements ensuring that its growth projections for FY2030 attainable and accurate.
Overall, despite the challenges faced by the toy-manufacturing industry over recent years, Mattel has managed to maintain a steady performance backed by consistent investment from notable institutional investors. As such, experts remain optimistic about the company’s future prospects. Investors should monitor its performance closely in the coming months to determine whether it warrants further investments in its stocks.
