Sell Alert: Steve Totzke Cashes Out $1.39M In Mattel Stock

Steve Totzke, President at Mattel MAT, reported an insider sell on May 13, according to a new SEC filing.

What Happened: Totzke opted to sell 73,778 shares of Mattel, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The transaction's total worth stands at $1,394,191.

Tracking the Tuesday's morning session, Mattel shares are trading at $18.88, showing a up of 0.48%.

Unveiling the Story Behind Mattel

Mattel markets toy products that are sold to its wholesale customers and direct to retail consumers. The company offers products for children and families, including toys for infants and preschoolers, girls and boys, youth electronics, hand-held and other games, puzzles, educational toys, media-driven products, and plush and fashion-related toys. Mattel's owned portfolio includes Barbie, Hot Wheels, Fisher-Price, Thomas & Friends, and American Girl. In addition, it currently manufactures toy products for its segments both internally and externally (through manufacturing partners). More than 50% of its net sales are generated from North America, with the remainder stemming from international markets.

Mattel's Economic Impact: An Analysis

Revenue Challenges: Mattel's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -0.62%. This indicates a decrease in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.

Insights into Profitability:

• Gross Margin: Achieving a high gross margin of 48.04%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Mattel's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of -0.08.

Debt Management: With a high debt-to-equity ratio of 1.28, Mattel faces challenges in effectively managing its debt levels, indicating potential financial strain.

Market Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 22.91, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.23 is above industry norms, reflecting an elevated valuation for Mattel's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 9.33, Mattel presents an attractive value opportunity.

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

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Navigating the Impact of Insider Transactions on Investments

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

A Deep Dive into Insider Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.

Check Out The Full List Of Mattel's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.