Recent insider trends for Mattel, Inc. (NASDAQ:MAT) have caught the attention of investors. Analysts study insider data to get a sense of sense of what key shareholders think about the outlook for a particular stock. In the case of MAT, the data has some interesting implications for where the stock might be headed.
Institutions own 98.62% of Mattel, Inc. (MAT)’s shares. The total value of these holdings, in millions, is $5,442. Among active positions in the latest quarter, 252 holders increased their positions by a total of 74.99 million shares, 260 holders decreased the positions by a total of 64.51 million shares, and 79 holders held their positions. This works out to a net increase in ownership of 10.48 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 56 holders initiated new positions by a total of 38.78 million shares and 97 holders exited their positions by a total of 10.34 million shares. This nets out to an increase of 28.44 million shares and is a bullish sign for MAT.
In the last three months, insiders executed a total of 16 trades. 1 of these were buys and 15 were sells. Insider ownership decreased by a total of 92498 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 28 sells, and ownership decreased by a net of 143422 shares.
The analysis of insider buying and selling trends can be extended to the aggregate level. Short interest, which represents the number of a stock’s shares currently being shorted, captures what the market as a whole feels about a stock. Mattel, Inc. (NASDAQ:MAT)’s short interest is 43.16 million shares, or 12.62% of the float. This represents an increase of 12% 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.
In light of the insider ownership and trading data it makes sense to consider technicals to see if they come to a similar 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 Strong sell, which implies that MAT is expected to underperform the market based on prior trading patterns.
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 overvalued.