In a recent move that has caught the attention of the market, Steve Totzke, the President and Chief Commercial Officer of Mattel Inc . (NASDAQ:MAT), sold a significant number of shares in the company. Over the course of three separate transactions, Totzke parted with a total of 73,778 shares, resulting in proceeds exceeding $1.39 million.
The sales took place between May 9 and May 13, with prices for the shares ranging from $18.891 to $18.9. The first transaction on May 9 involved 23,662 shares at a weighted average price of $18.891, as noted in a footnote which also indicates that the actual transactions occurred at prices between $18.825 and $18.91. The following day, Totzke sold 4,900 shares at $18.90 each, and on May 13, an additional 45,216 shares were sold at the same price.
Following these transactions, Totzke still holds a substantial number of Mattel shares. The filings show that, excluding indirect holdings in the company's 401(k) plan, Totzke's direct ownership in Mattel stands at 101,902 shares.
The disclosed indirect holdings in the company's 401(k) plan amount to 19,100 shares of common stock, which is part of a balance totaling $360,416.99 in the Mattel Stock Fund of the Personal Investment Plan, as calculated by the third-party administrator.
Investors often monitor insider transactions as they can provide insights into the executives' perspectives on the company's valuation and future prospects. The sale of shares by a high-level executive like Totzke is a noteworthy event that may be of interest to current and potential shareholders.
For those looking to follow up on the details of these transactions, the complete information is available upon request, as per the filings.
InvestingPro Insights
As investors digest the news of Steve Totzke's share sales in Mattel Inc. (NASDAQ:MAT), it's crucial to consider the broader financial context of the company. Mattel's current Market Cap stands at approximately $6.46 billion, reflecting the scale of the company within the toys and games industry. The P/E Ratio, a key indicator of market expectations about future earnings, is 22.67, suggesting investors are willing to pay a higher price for earnings today in anticipation of growth. Adjusting for the last twelve months as of Q1 2024, the P/E Ratio settles slightly lower at 21.27.
Looking at profitability, Mattel has been successful over the last twelve months, with an Operating Income Margin of 11.94%, indicating efficient management and a solid grasp on operational costs. This is further supported by a robust Gross Profit Margin of 48.71%, showcasing the company's ability to maintain a significant markup on its products.
When considering investment opportunities, the InvestingPro Tips for Mattel provide further insights. Notably, the company has a perfect Piotroski Score of 9, which is a strong indicator of financial health. Additionally, Mattel is expected to be profitable this year, with net income projected to grow. These factors may reassure investors about the company's stability and potential for growth, despite recent insider sales.
To gain a deeper understanding of Mattel's financial health and future prospects, investors can explore additional InvestingPro Tips available on the platform. Currently, there are 10 more tips listed for Mattel, which can be accessed with a subscription. Remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing a comprehensive toolkit for making informed investment decisions.
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