5 Stocks to Buy According to John Rogers’ Ariel Investments

2. Mattel, Inc. (NASDAQ:MAT)

Ariel Investments’ Stake Value: $393,539,000
Percentage of Ariel Investments’ 13F Portfolio: 3.49%
Number of Hedge Fund Holders: 38

Mattel, Inc. (NASDAQ:MAT) is a toy company that creates, manufactures, and sells its products worldwide. North America, International, and American Girl are the company’s segments. As per Insider Monkey’s database for Q1 2022, 38 hedge funds held stakes in Mattel, Inc. (NASDAQ:MAT), up from 29 in the previous quarter. These stakes hold a total value of roughly $1.32 billion.

Mattel, Inc. (NASDAQ:MAT) has been a part of Ariel Investments’ portfolio since the fourth quarter of 2010. The hedge fund initiated its position in the company with shares worth over $27.12 million. At the end of Q1 2022, the fund held a $393.54 million stake in Mattel, Inc. (NASDAQ:MAT), which accounted for 3.49% of John Rogers’ portfolio.

In its Q4 2021 investor letter, Longleaf Partners Fund mentioned Mattel, Inc. (NASDAQ:MAT). Here is what the fund said:

“Mattel (24%, 1.40%; 16%, 0.96%), the global toy and media company, was a strong contributor in the fourth quarter and for the year. Despite store closures in Asia causing -20% regional revenues during the third quarter, Mattel’s consolidated sales still grew 8% due to its strong North American recovery. Barbie sales remain impressive as they have been for years, American Girl is finally returning to growth and Fisher Price is also recovering. The company is successfully passing through inflated costs with higher pricing and without losing volume. Despite the impressive results, the stock trades too low at less than 14x forward earnings, and that is before Mattel begins to monetize its massive non-earning asset Intellectual Property portfolio. Our appraisal of the value grew by more than 30% this year.”