Mattel, Inc. (NASDAQ:MAT) stock was down today on a couple bits of bad news for the toy company.
The first bit of bad news to hit MAT stock is a drop to its debt rating. This had the company’s debt rating dropping two ranks to B+. The move was made by Fitch Ratings, which has concerns about the company’s leverage ratio and access to credit from U.S banks.
“Execution missteps, including the inability of the company to effectively respond to evolving play patterns and ongoing retail challenges, with retailers cutting back on inventory purchases, and most recently the September 2017 bankruptcy of Toys ‘R’ Us, Inc., have pressured operating results and cash flow,” Fitch Rating said in a statement obtained by TheStreet.
Following the drop to its debt rating, Mattel, Inc. also saw Jefferies analysts drop their rating for MAT stock. This had the firm cutting the stock from its previous rating of “Hold” to a new rating of “Underperform.”
Jefferies analysts also provided an update to their price target for MAT stock. Unlike with the stock rating, the analysts increased their price target. The new price target is $13, while the previous one was $12.50.
The drop in ratings for Mattel, Inc. stock comes after a disappointing fourth quarter of 2017. The company reported losses per share of 74 cents during the period, which was a major drop from third-quarter earnings per share of 9 cents. It also didn’t come anywhere close to Wall Street’s earnings per share estimate of 17 cents for the quarter.
MAT stock was down 3% as of noon Monday.
As of this writing, William White did not hold a position in any of the aforementioned securities.