Hasbro, Mattel deal would unite Barbie and Mr. Potato Head

Ann Santiago
November 14, 2017

"Hasbro's market cap of around $11.5 billion could likely absorb a takeover of Mattel, which has seen a almost 50% collapse in its share price this year amid a fast-changing retail market that has already claimed rival Toy R Us Limited by way of a September bankruptcy filing", observes The Street's Baccardax.

A number of other hedge funds and other institutional investors have also recently modified their holdings of MAT. Private Trust Co. NA purchased a new stake in Mattel during the second quarter valued at approximately $209,000. Eaton Vance Management lifted its position in shares of Mattel by 581.7% during the 2nd quarter. Fairpointe Capital LLC now owns 7,993,469 shares of the company's stock valued at $172,099,000 after acquiring an additional 1,560,624 shares during the period. Visionary Asset Management Inc. boosted its stake in Mattel by 5.0% in the second quarter. Hasbro closed at $91.45 a share, up 3 percent, Friday. For the day, Mattel was already up 5% to close at $14.62, but below its Mattel's 52-week high of $32.48. Mattel Inc. The firm has a market cap of $10.14 billion, a PE ratio of 28.35 and a beta of 0.98. Finally, DA Davidson downgraded shares of Mattel from a "neutral" rating to an "underperform" rating and cut their price objective for the company from $22.00 to $18.00 in a report on Thursday, August 3rd.

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Mattel (NASDAQ:MAT) last posted its earnings results on Wednesday, October 19th. "... That prompted S&P Global Ratings to lower its ratings on Mattel's corporate debt, and led one analyst to say that Mattel might be better off as a takeover target". Mattel had a positive return on equity of 2.51% and a negative net margin of 11.73%. The company earned $1.80 billion during the quarter, compared to the consensus estimate of $940.30 million. The firm's revenue for the quarter was up.2% compared to the same quarter a year ago.

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