5 Best M&A Target Stocks to Buy Now

4. Mattel, Inc. (NASDAQ:MAT)

Short Percentage of Float: 6.62%

Mattel, Inc. (NASDAQ:MAT) is one of the best M&A target stocks to buy now.

Mattel, Inc. (NASDAQ:MAT) moved into the M&A spotlight after Reuters reported on May 8 that Southeastern Asset Management, which owns about 4% of the toy company, urged CEO Ynon Kreiz to consider strategic alternatives, including taking Mattel private or pursuing a sale to Hasbro. The investor argued that weak traditional toy demand and supply-chain pressures called for bolder action, while also pointing to Mattel’s intellectual property portfolio as an asset that could hold more value under a different ownership structure. Southeastern also suggested that a media company could be a potential buyer because of Mattel’s brands and entertainment potential.

The takeover angle is supported by Mattel’s mix of exposure to a challenged toy market and valuable owned franchises. Reuters noted that Mattel has been pushing deeper into entertainment after the success of the “Barbie” movie and has been expanding its IP strategy around properties such as “Masters of the Universe.” Jefferies analysts reportedly said a Hasbro transaction appeared unlikely, but the investor pressure could still push Mattel toward steps aimed at improving shareholder value.

Mattel, Inc. (NASDAQ:MAT) is a toy and entertainment company whose brand portfolio includes Barbie, Hot Wheels, Fisher-Price, American Girl, Thomas & Friends, UNO, Masters of the Universe, Matchbox, Monster High, and Polly Pocket.