Mattel, Inc. (Nasdaq: MAT) stock began coming back to earth on Wednesday after it spiked as much as 16 percent the day before amid continuing rumors of a buyout from competitor Hasbro (HAS).
Mattel stock fell 1 percent on Wednesday as trading volume dropped from Tuesday’s peaks. MAT stock spiked about 2 p.m. on Tuesday and finished up 10 percent for the day. Hasbro stock jumped about 4 percent at the same time.
While the movement has been welcomed by Mattel investors, it left Wall Street analysts scratching their heads.
“We cannot point to any specific reason for the stocks’ moves, except to note that there has been media speculation in recent months about HAS acquiring MAT,” D.A. Davidson analyst Linda Bolton Weiser says.
In November, Mattel reportedly turned down a buyout offer from Hasbro.
Weiser says the only other positive news this week for toy companies was the NPD Group retail weekly sales report that covered the Christmas holiday. The report showed a big boost for toys from the infant to preschooler market, Weiser says.
Mattel stock has taken a beating in the past year amid declining sales numbers. Mattel took a major hit when retail partner Toys ‘R’ Us filed for bankruptcy in September. Toys ‘R’ Us, which once accounted for up to 10 percent of Mattel’s total sales, announced on Wednesday it will be closing 180 of its stores starting in February.
Hasbro and Mattel have discussed a merger on several occasions in the past, including in 1996 and 2015. But even with Mattel’s price tag down 42 percent from a year ago, Argus research analyst John Staszak says…
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