AlphaQuest LLC Increases Mattel Stake Significantly in Q2

AlphaQuest LLC has significantly increased its investment in Mattel, Inc. by acquiring an additional 28,705 shares, boosting its stake by an impressive 600.3% during the second quarter of 2023. As reported in its latest Form 13F filing with the Securities and Exchange Commission (SEC), the firm now holds a total of 33,487 shares valued at approximately $660,000.

This development comes amid a broader trend among institutional investors. Other notable changes in holdings include Trust Co. of Vermont, which raised its stake in Mattel by 995.8% in the first quarter, now owning 1,315 shares worth about $26,000. Similarly, Parallel Advisors LLC increased its position by 189.9% during the same period, resulting in ownership of 1,609 shares valued at approximately $32,000. Additionally, IFP Advisors Inc raised its stake by 90.6%, and Atlas Capital Advisors Inc acquired a new position valued around $59,000.

With institutional investors and hedge funds controlling 97.15% of Mattel’s stock, the company’s shareholder landscape is heavily influenced by large financial entities.

Analysts Adjust Ratings

Analysts have also recently revised their ratings on Mattel. On October 22, 2023, Cfra Research downgraded the stock from a “moderate buy” to a “hold” rating. Roth Capital set a price target of $20.00 and assigned a “neutral” rating. In a similar vein, JPMorgan Chase & Co. lowered its price objective from $25.00 to $23.00, while DA Davidson reduced its target from $30.00 to $25.00, maintaining a “buy” rating. Currently, MarketBeat.com indicates that four analysts have rated the stock as a “buy,” while five have issued a “hold” rating.

Mattel’s Recent Performance

Mattel’s stock performance has shown volatility. On October 21, 2023, the company reported earnings per share of $0.89 for the latest quarter, falling short of the consensus estimate of $1.05 by $0.16. Its revenue of $1.74 billion also missed expectations of $1.86 billion, representing a year-over-year decline of 5.9%. The company noted a net margin of 8.27% and a return on equity of 20.60%.

At the time of reporting, shares of Mattel traded at $19.04, with a market capitalization of $6.13 billion. The stock has a 52-week range, with a low of $13.94 and a high of $22.07. The company’s financial metrics include a price-to-earnings ratio of 14.21 and a debt-to-equity ratio of 0.77.

As Mattel looks ahead, it has set guidance for fiscal year 2025, projecting earnings per share between $1.540 and $1.660. Analysts anticipate that the company will post an EPS of $1.70 for the current fiscal year.

With the toy and entertainment landscape constantly evolving, investor interest in Mattel remains strong, driven by its extensive portfolio of brands, including Barbie, Hot Wheels, and Fisher-Price. The ongoing adjustments from institutional investors and analysts reflect a keen observation of the company’s potential and market positioning in the coming quarters.