Mattel (MAT) Is Strong On High Volume Today

Trade-Ideas LLC identified Mattel (MAT) as a strong on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Mattel

(

MAT

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Mattel as such a stock due to the following factors:

  • MAT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $103.8 million.
  • MAT has traded 1.5 million shares today.
  • MAT is trading at 3.93 times the normal volume for the stock at this time of day.
  • MAT is trading at a new high 3.03% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on MAT:

Mattel, Inc. designs, manufactures, and markets a range of toy products worldwide. The company operates in three segments: North America, International, and American Girl. The stock currently has a dividend yield of 6.5%. MAT has a PE ratio of 26. Currently there are 3 analysts that rate Mattel a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Mattel has been 5.3 million shares per day over the past 30 days. Mattel has a market cap of $7.9 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 1.30 and a short float of 21.3% with 17.01 days to cover. Shares are down 23.1% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Mattel as a

hold

. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

Highlights from the ratings report include:

  • Net operating cash flow has significantly increased by 128.29% to $18.44 million when compared to the same quarter last year. In addition, MATTEL INC has also vastly surpassed the industry average cash flow growth rate of 10.53%.
  • The gross profit margin for MATTEL INC is rather high; currently it is at 52.34%. Regardless of MAT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MAT's net profit margin of 12.48% compares favorably to the industry average.
  • MAT, with its decline in revenue, underperformed when compared the industry average of 1.2%. Since the same quarter one year prior, revenues fell by 11.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • MATTEL INC's earnings per share declined by 31.9% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, MATTEL INC reported lower earnings of $1.46 versus $2.60 in the prior year. For the next year, the market is expecting a contraction of 13.7% in earnings ($1.26 versus $1.46).
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Leisure Equipment & Products industry average. The net income has significantly decreased by 32.6% when compared to the same quarter one year ago, falling from $331.84 million to $223.78 million.

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