Finance

Are Mattel, Inc. (MAT)’s Recent Ownership and Insider Trends a Sign of Things to Come?

Recent insider trends for Mattel, Inc. (NASDAQ:MAT) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on MAT is anything to go by, investors should pay attention.

Institutions own 103.04% of Mattel, Inc. (MAT)’s shares. The total value of these holdings, in millions, is $6,247. Among active positions in the latest quarter, 217 holders increased their positions by a total of 68.72 million shares, 255 holders decreased the positions by a total of 47.81 million shares, and 71 holders held their positions. This works out to a net increase in ownership of 20.92 million shares, and suggests that institutions are feeling bullish about the stock.

Among new and sold out positions, 44 holders initiated new positions by a total of 11.64 million shares and 92 holders exited their positions by a total of 9.03 million shares. This nets out to an increase of 2.62 million shares and is a bullish sign for MAT.

In the last three months, insiders executed a total of 3 trades. 3 were sells. Insider ownership decreased by a total of 64443 shares, which suggests that MAT’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 5 buys and 29 sells, and ownership decreased by a net of 183292 shares.



Analysts often look at short interest, or the number of shares currently being shorted by investors, to aid in their outlook for a particular stock. Mattel, Inc. (NASDAQ:MAT)’s short interest is 76.8 million shares, or 22.46% of the float. This represents an increase of 7% in the number of shares being shorted compared to the previous reading, and implies that investors felt more pessimistic about the stock during the past two weeks.

Given what the insider ownership patterns are saying, it makes sense to consider the technicals to see if these pieces of information reach the same conclusion about the outlook for MAT. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that MAT is a buy, which implies that MAT is expected to outperform the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bearish. Technical indicators (also) suggest that Mattel, Inc. (NASDAQ:MAT) is undervalued.

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