Hasbro Makes Bid For Rival Toymaker Mattel

11 November, 2017, 10:39 | Author: Leticia Walters
  • Hasbro makes takeover offer for Mattel: Report

As of October 13th, there was short interest totalling 71,863,247 shares, an increase of 13.9% from the September 29th total of 63,072,066 shares. Based on an average daily trading volume, of 7,327,356 shares, the days-to-cover ratio is now 9.8 days.

Mattel's shares jumped 20 per cent in after hours trading, while Hasbro rose 2.2 per cent. The company had a trading volume of 9,871,886 shares, compared to its average volume of 7,648,982.

Analysts believe that the company has the potential to earn average revenue of $1.93 Billion for the current quarter. Mattel has a 1 year low of $12.71 and a 1 year high of $32.48. The company operates in the Consumer Cyclical sector with a market capitalization of 4.57 Million.

Mattel (NASDAQ:MAT) last posted its earnings results on Thursday, October 26th. The company reported $0.09 EPS for the quarter, missing the consensus estimate of $0.58 by ($0.49).

Mattel, Inc. (NASDAQ:MAT) gross margin percentage stands at 42.8% while its operating margin for the past trailing twelve month is 3.4 percent and its overall profit margin (ttm) is -11.7 Percent. The firm's quarterly revenue was down 13.1% on a year-over-year basis. The company's revenue was down 13.1% compared to the same quarter a year ago.

Large investors have recently added to or reduced their stakes in the stock. Penserra Capital Management LLC lifted its stake in shares of Mattel by 26.6% during the second quarter. Hasbro, meanwhile, has gained 18% on the year and closed Friday at $91.45, up 3.1% on the day.

"Both companies would benefit from a merger, but Mattel stockholders might oppose a deal that values the company on its depressed stock price", said Erik Gordon, a professor at the University of Michigan's Ross School of Business. Aberdeen Asset Management PLC UK raised its holdings in Mattel by 43.8% in the 2nd quarter. Institutional investors and hedge funds own 93.01% of the company's stock.

Hasbro, which is trying to diversify its revenue stream, also sought to buy USA movie studio and entertainment company Lions Gate Entertainment Corp this year, but those talks ended without a deal, Reuters reported in August. Jefferies Group LLC reissued a "hold" rating and set a $17.00 price target (down from $19.00) on shares of Mattel in a research note on Friday, July 28th. The company now has an average rating of "Buy" and a consensus price target of $35.53. Finally, Stifel Nicolaus reaffirmed a "hold" rating on shares of Mattel in a research note on Thursday, August 3rd. One investment analyst has rated the stock with a sell rating, five have given a hold rating, eleven have assigned a buy rating and one has assigned a strong buy rating to the company. 0 analysts gave its stock an Outperform rating.

Mattel, Inc. (NASDAQ:MAT) received a Buy rating from 2 analysts.

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