"Hasbro's market cap of around $11.5 billion could likely absorb a takeover of Mattel, which has seen a almost 50% collapse in its share price this year amid a fast-changing retail market that has already claimed rival Toy R Us Limited by way of a September bankruptcy filing", observes The Street's Baccardax. (NASDAQ MAT) opened at C$14.62 on Monday. Corporate insiders own 0.88% of the company's stock. Mattel's shares have slumped 47 percent this year, valuing the company at $4.8 billion and making it more vulnerable as a takeover target. Mattel had a positive return on equity of 2.51% and a negative net margin of 11.73%. The firm had revenue of C$1.56 billion during the quarter, compared to the consensus estimate of C$1.82 billion. During the same period in the prior year, the business earned $0.70 EPS. Analysts forecast that Mattel Inc. will post $1.28 earnings per share for the current fiscal year.
Several research analysts have weighed in on MAT shares. UBS AG reiterated a "buy" rating and issued a $23.00 price target on shares of Mattel in a research note on Saturday, September 16th. In fact, of the top-five toy items or toy lines out on the market right now, none of them are Hasbro or Mattel.
The report comes close on the heels of the bankruptcy of Toys'R'Us - a major outlet for toy sales - that piled more pressure on an industry already struggling with online competition and lackluster demand for traditional toys. Janus Henderson Group PLC lifted its position in shares of Mattel by 19,570.6% during the 2nd quarter. TheStreet downgraded Mattel from a "c" rating to a "d" rating in a research report on Thursday, October 26th. Six equities research analysts have rated the stock with a hold rating, twelve have given a buy rating and one has given a strong buy rating to the company's stock. The new company could become the world's largest toy company. Hasbro owns Nerf, Transformers, and My Little Pony, while Mattel makes Barbie and American Girl dolls, along with Fisher-Price and Hot Wheels toys.