Why Shares of Mattel Bounced Back Today

Shares of toy maker Mattel (NASDAQ: MAT) surged on Monday, erasing the loss suffered last week following the company's disastrous third quarter. Speculation about a possible takeover seems to be the main driver. The stock was up about 11.5% at 3:45 p.m. EDT.

A report from Gerrick Johnson, an analyst at BMO Capital Markets, suggested that Mattel could be a takeover target after its dismal results. Mattel's third-quarter earnings report featured a double-digit revenue decline, a steep drop in earnings, and the suspension of the dividend. The Toys R Us bankruptcy was a major headwind, but Mattel has been facing weak demand for its core brands for years.

Image source: Mattel.

Source: Fool.com