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Mattel - AI Stock Analysis

Analysis generated June 27, 2024

Mattel Inc. is a renowned global toy company engaged in the design, manufacture, and marketing of various toy products. With iconic brands like Barbie, Hot Wheels, and Fisher-Price, Mattel enjoys a robust position in the toy industry. Founded in 1945, the company has built a formidable brand presence worldwide. Despite significant competition in the toy market, Mattel continues to innovate and adapt to changing consumer preferences by expanding into digital and entertainment segments.

Fundamental Analysis

Revenue for the last quarter was $780 million. This represents a substantial decrease of 50.70% compared to the quarter before it, signaling a significant need for concern. However, the year-over-year comparison shows a marginal decrease of 0.61%, which still poses a risk but is less alarming.

Net income for the last quarter amounted to $28 million. Though there's a decrease of 119.20% compared to the previous quarter, indicating potential short-term struggles, the year-over-year increase of 73.44% suggests positive growth.

EBITDA for the last quarter stood at $11 million. This figure has decreased by 106.97% compared to the quarter before, raising concerns. Yet, the year-over-year increase of 87.94% shows a positive trend over the longer term.

The current Price-to-Earnings (P/E) ratio is 19.79. This ratio is within a typical range, indicating neither an undervaluation nor overvaluation based on earnings.

Additionally, there has been recent insider selling activity, which could be interpreted as a bearish signal, suggesting that some of those closest to the company might be losing confidence.

Technical Analysis

Today's stock price for Mattel sits at $16.31. This represents a decrease of 7.22% compared to a month ago, which could be concerning in the short term. Over the past year, the stock price has declined by 14.07%, indicating potential long-term challenges.

The stock trend is currently bearish. The Simple Moving Average over the past 10 days (SMA10) is at 17.10, down from the previous SMA10 of 17.18, suggesting a potential downward trend in price movement. The Relative Strength Index (RSI) is 95.8, indicating an overbought condition that may lead to further bearish movement.

Alternative Data Analysis

According to recent data from popular job boards, Mattel has 356 open positions. This number has increased by 37% in the last couple of months, indicating that the company is looking to grow and expand, which could be a healthy sign.

Mattel’s website has an estimated 5.9 million visitors, with a 7% increase over the past couple of months. This bullish trend might suggest an increase in customer acquisition.

In terms of customer engagement, Mattel has 770,000 followers on Instagram, with no significant change in recent months. On Twitter, Mattel has 210,000 followers, with the number remaining stagnant, potentially indicating a loss in interest in the company.

Furthermore, according to AltIndex’s AI score, which predicts stock prices based on fundamental, technical, and alternative data, Mattel has a score of 40, which signals a sell recommendation.

Conclusion and Recommendation

Based on this comprehensive analysis, Mattel’s stock shows mixed indicators, with some pointing towards growth potential while others signal caution. The substantial decreases in revenue, net income, and EBITDA quarter-over-quarter raise immediate concerns, despite some positive year-over-year trends. On the technical front, the bearish trend and overbought RSI highlight potential downside risks. While the increase in job postings and web traffic suggests a positive outlook, the stagnant social media engagement and insider selling activity provide reasons for caution.

Given the overall analysis, especially the AltIndex AI score of 40 indicating a sell signal, the recommendation leans towards a cautious or selling posture for Mattel’s stock. Investors should be mindful of both the short-term challenges and long-term potential before making any investment decisions.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.