Is Mattel Getting Bought Out? $6 Billion Authentic Brands Deal Rumor Triggers Massive Rally

Mattel, Inc. (NASDAQ:MAT) stock edged higher in premarket trading Friday after surging more than 18% on Thursday, as takeover speculation involving Authentic Brands Group fueled investor interest.

Reports suggested Authentic Brands could pay more than $20 per share, representing roughly a 58% premium to Mattel’s $12.66 Wednesday close.

Authentic Brands Takeover Chatter Drives Mattel Rally

Authentic Brands has reportedly held private discussions about acquiring Mattel in a deal that could value the toy company at $6 billion or more, compared with its roughly $3.6 billion market capitalization before the report.

The discussions remain preliminary, and no formal offer has been announced.

The stock’s surge also comes after a volatile stretch tied to leadership transition risk, with shares previously down on CEO succession news ahead of an Oct. 2 handoff.

Mattel said Chairman and CEO Ynon Kreiz will step down Oct. 2. Board member Roger Lynch will become chairman that day and is expected to assume the CEO role by Nov. 2.

MAT Technical Picture Improves After Rally

Thursday’s surge pushed Mattel to $15.10, placing the stock 11.1% above its 20-day SMA and 5.4% above its 50-day SMA.

However, shares remained 5.1% below the 200-day SMA and were still down 12.66% over the past 12 months.

MACD remained above its signal line with a positive histogram, pointing to improving short-term momentum.

The broader moving-average structure remains weaker, with the 20-day SMA below the 50-day and the 50-day below the 200-day SMA.

Key resistance sits near $15.50, while support is around $14.00.

Mattel Earnings and Analyst Outlook

Mattel’s next major scheduled catalyst is its estimated Oct. 20 earnings report.

Wall Street expects EPS of $1.01, up from 89 cents a year earlier, on revenue of $1.84 billion versus $1.74 billion in the prior-year period.

Mattel trades at a price-to-earnings ratio of about 11.2 times.

The stock carries a Hold consensus rating with an average analyst price forecast of $15.83 across seven analysts, ranging from $12 to $22.

Recent analyst actions include Argus Research maintaining Buy with a $22 forecast on Aug. 25, Roth Capital maintaining Neutral while lowering its forecast to $15 on July 14, and Citigroup maintaining Neutral while cutting its forecast to $15 on July 10.

MAT Price Action: Mattel shares were up 0.73% at $15.15 during premarket trading on Friday, according to Benzinga Pro data.

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