• Research

Oct 27, 2017

S3 Analytics: Short Sellers Get An Early Christmas Present From Mattel

Mattel Inc. (MAT) is down 16% in early morning trading after it reported 3rd quarter earnings significantly below analysts’ estimates and the toy company decided to suspend its dividend.  The sales slump at Mattel continued to deepen in the wake of the bankruptcy at Toys R’ Us and the loss of the Disney princess franchise to Hasbro.  Mattel short sellers are up $184.4 million in mark-to-market profits today.

S3 Partners real-time analytics calculates an all-time high of 74.5 million shares currently short with $1.1 billion dollars at risk.  Despite the record levels of short interest, only 21.8% of the float is being utilized.  Should bearish sentiment continue, short sellers have plenty of additional stock available to sell.  Shares of Mattel trade at general collateral levels, the cheapest fee or easiest to borrow stock.  Hasbro, Mattel’s main competition, has not been as heavily targeted by short sellers.  Short interest remained consistent over the past month at $550 million dollars at risk.

It appears that the new CEO, Margo Georgiadis, plans to increase cost-cutting threefold, reducing the number of products that Mattel makes by 40% in the coming years.  As the market continues to roar ahead into the last quarter 2017, it doesn’t appear that short sellers will take their foot off of the gas anytime soon.

Want deeper insight into the above analysis? Contact:
Brett.Weiss@S3Partners.net
Director, S3 Partners
The information herein (some of which has been obtained from third party sources without verification) is believed by S3 Partners, LLC ('S3 Partners') to be reliable and accurate. Neither S3 Partners nor any of its affiliates makes any representation as to the accuracy or completeness of the information herein or accepts liability arising from its use. Prior to making any decisions based on the information herein, you should determine, without reliance upon S3 Partners, the economic risks and merits, as well as the legal, tax, accounting and investment consequences, of such decision.


To learn more about S3 Short Interest data, BLACKLIGHT Treasury Management, and Counterparty Risk Solutions, click here

To trial the S3 BLACK APP – the Definitive Source of Real-Time Short Interest - type APPS BLACK <GO> on the Bloomberg terminal

The BLACK APP is now available on Thomson Reuters Eikon! For a free trial, go to the App Library and open the App Studio