Mason Hawkins’ Top 5 Stock Picks

2. Mattel, Inc. (NASDAQ:MAT)

Southeastern Asset Management’s Q1 2023 Stake: $207.4 million

Mattel, Inc. (NASDAQ:MAT) is an American multinational toy manufacturing and entertainment company founded in Los Angeles by Harold Matson and the husband-and-wife duo of Elliot and Ruth Handler in January 1945. The company’s first-quarter revenue of $814.6 million beat Street estimates by $73.86 million. It generated over $206 million in operating cash flow, showing an increase of $63 million from the prior-year quarter. Southeaster Asset Management reported holding more than 11.2 million MAT shares at the close of Q1 2023.

During the month of April, DA Davidson reaffirmed its Buy rating on Mattel, Inc. (NASDAQ:MAT) while assigning a price target of $23. The investment firm specifically emphasized the potential of Mattel’s direct-to-consumer segment.

The number of hedge funds tracked by Insider Monkey owning stakes in Mattel, Inc. (NASDAQ:MAT) grew to 31 in Q1 2023, from 27 in the previous quarter. These stakes have a collective value of roughly $984 million. Ken Griffin Citadel Investment Group is one of the firm’s biggest shareholders with stakes worth approximately $82.32 million

Ariel Investments mentioned Mattel, Inc. (NASDAQ:MAT) in its Q4 2022 investor letter. Here is what the firm has to say:

“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.”