"Problems At Mattel: Despite 'Barbie' Success, Its Stock Is A Dud. Now An Activist Investor Is Circling" - LA Times
Portfolio Pulse from Benzinga Newsdesk
Despite the success of 'Barbie', Mattel's stock performance has been lackluster, attracting activist investor Barington Capital Group's attention. Barington is pushing for changes, including $2 billion in stock buybacks, and the potential sale of the American Girl and Fisher-Price brands. Mattel's stock has underperformed the S&P 500 by over 20% in the two years before Barington's campaign. Despite a 7% rise in February, challenges remain with declining annual net income and soft toy industry sales. Mattel plans to focus on profit growth and new product introductions in the coming year.
February 28, 2024 | 4:50 pm
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NEUTRAL IMPACT
Mattel faces pressure from Barington Capital Group to implement stock buybacks and possibly sell American Girl and Fisher-Price brands. Despite 'Barbie's' success, stock underperformance and industry challenges persist.
The involvement of Barington Capital Group, advocating for significant corporate actions including stock buybacks and the sale of major brands, could lead to short-term volatility in Mattel's stock. However, the company's recent success with 'Barbie' and plans for profit growth and new product introductions could counterbalance investor concerns, leading to a neutral short-term impact.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100