Short covering in Mattel Inc (MAT) continues today, following a year-long trend where shares shorted decreased by 6.3 million shares, -10.13%, in 2019 and -3.6 million shares, -6.06%, in February.
Mattel short interest is $771 million; 55.78 million shares shorted; 16.29% of float; stock borrow cost is 30 bps fee (general collateral.)
MATâ€™s stock price is up 35% on the year, and shorts are down $216 million in mark-to-market losses for the year. Mattel shorts were down $266 million in February alone, after they reported sales figures on February 8th, which included strong demand for Barbie, that beat reduced analystsâ€™ expectations. On February 15th, Mattel reported flat forecasted 2019 earnings and shorts made back Â $172 million of their earlier losses.
Today shorts are up an additional $33 million in mark-to-market profits on todayâ€™s -4.23% price move.
We are seeing sizeable short covering today, as shorts cover their positions as they make back most of the losses they incurred over the last two weeks. If todayâ€™s long selling peters out, we may see an upturn in stock price as short covering will boost the effect of any long buying in the stock.
Want deeper insight into the above analysis?
Contact:Â [email protected]
Managing Director Predictive Analytics, S3 Partners, LLC
For more information on S3â€™s reporting, data and analytics solutions, email us at [email protected]. Start your free trial of the BLACK App â€“ the only source of real-time short interest on the Bloomberg Terminal or Thomson Reuters Eikon.
For short side data and access to our research reports go to https://shortsight.com/.
The information herein (some of which has been obtained from third party sources without verification) is believed by S3 Partners, LLC (â€śS3 Partnersâ€ť) to be reliable and accurate.Â 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.Â 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 decisions.