What's Going On With Mattel Stock After Earnings?

Mattel, Inc. MAT shares are trading higher Wednesday after the company posted better-than-expected first-quarter adjusted earnings per share results. Here's a look at the details.

The Details:

Mattel reported quarterly losses of 5 cents per share which beat the analyst consensus estimate of losses of 12 cents per share.

Quarterly sales came in at $810 million, missing the analyst consensus estimate of $831.8 million by 2.62% and representing a 0.56% decrease in sales year-over-year.

Mattel said gross billings in its North America segment increased by 1%, driven by growth in Vehicles (primarily Hot Wheels) and Action Figures, Building Sets and Games, partly offset by declines in Infant, Toddler and Preschool (primarily Baby Gear) and Dolls (primarily Disney Princess and Disney Frozen).

The company expects full-year adjusted earnings in a range of $1.35 to $1.45 per share, versus the $1.39 estimate. 

Following the print, DA Davidson analyst Linda Bolton Weiser maintained Mattel with a Buy rating and raised the price target on the stock from $26 to $27. Also, Roth MKM maintained its Neutral rating and $21 price target on Mattel.

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Should I Sell My MAT Stock?

When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return.

Shares of Mattel have increased by 14% in the past year. An investor who bought shares of Mattel at the beginning of the year would make a profit of $0.57 per share if they sold it today.

Mattel shares have an all-time high of $26.97, representing 39.42% upside from current levels.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Mattel stock currently has an RSI of 65.56, indicating neutral conditions.

For access to advanced charting and analysis tools and stock data, check out Benzinga PRO. Try it for free.

MAT Price Action: According to Benzinga Pro, Mattel shares are up 3.82% at $19.45 at the time of publication Wednesday.

Image: 1319631 from Pixabay