Does Mattel (MAT) have Attractive Growth Prospects?
Ariel Investments, an investment management company, released its “Ariel Small-Cap Value Strategy” fourth-quarter investor letter. A copy of the same can be downloaded here. In the fourth quarter, the Ariel Small Cap Value Tax-Exempt Composite gained 13.37% gross of fees compared to an 8.42% return for the Russell 2000 Value Index and a 6.23% gain for the Russell 2000 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Ariel Small-Cap Value Strategy highlighted stocks like Mattel, Inc. (NASDAQ:MAT) in the fourth quarter 2022 investor letter. Headquartered in El Segundo, California, Mattel, Inc. (NASDAQ:MAT) is an entertainment company that designs and produces toys and consumer products. On March 14, 2023, Mattel, Inc. (NASDAQ:MAT) stock closed at $16.28 per share. One-month return of Mattel, Inc. (NASDAQ:MAT) was -12.66%, and its shares lost 30.55% of their value over the last 52 weeks. Mattel, Inc. (NASDAQ:MAT) has a market capitalization of $5.791 billion.
Ariel Small-Cap Value Strategy made the following comment about Mattel, Inc. (NASDAQ:MAT) in its Q4 2022 investor letter:
"Toy manufacturer, Mattel, Inc. (NASDAQ:MAT) also weighed on relative returns in the quarter. Although sales came in slightly lower than expectations, strong gross margins drove a solid earnings beat. MAT maintained its full-year revenue outlook but lowered its EPS guide to account for Fx headwinds and greater promotions and discounts on high price-point items. We remain encouraged by management’s execution on its strategy to grow market share, improve profitability and generate higher levels of cash flow. We continue to view MAT as an undervalued asset with attractive growth prospects, particularly with the reintroduction of the Disney Princess and Frozen toy lines, Trolls, the global launch of Monster High, and product support around the highly anticipated Barbie movie in 2023."
Photo by Elena Mishlanova on Unsplash
Mattel, Inc. (NASDAQ:MAT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Mattel, Inc. (NASDAQ:MAT) at the end of the fourth quarter which was 33 in the previous quarter.
We discussed Mattel, Inc. (NASDAQ:MAT) in another article and shared the list of best value stocks to buy according to Legendary Bill Miller. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
