Mattel Stock Falls 11%, Hitting 52-Week Low

Shares of Mattel Inc. fell 11% to hit a new 52-week low amid nervousness about earnings, analysts said. Shares of the world’s largest toy maker lost $2.13 to close at $16.88 on the New York Stock Exchange. Wall Street expects the El Segundo-based company to earn 67 cents a share in its third quarter, according to the latest consensus from First Call/Thomson Financial. Merrill Lynch analyst Hayley Kissell downgraded the stock, a source at the brokerage company said, but the analyst was not immediately available for comment. Mattel has had several rough quarters as it struggled to cope with declining sales of Barbie dolls, but has also moved to transform itself into a family-products company with more diverse lines of dolls and an expanded cache of computer-related products. Rumors that Mattel may be looking at other acquisitions have added to the recent stock price weakness, analysts said. Rumors also circulated that pressure on Mattel Chief Executive Jill Barad may be building as the stock continues to take a beating.