John Rogers’ Top 5 Stock Picks

4. Mattel, Inc. (NASDAQ: MAT)

Value: $277,922,000
Change in Position Size: -7%
Percent of John Rogers’ 13F Portfolio: 3.1%

Mattel Inc. is a California-based toy company which owns major brands like Barbie, Polly Pocket, Hot Wheels, Matchbox, UNO, Star Wars, and Toy Story. For the fourth quarter of 2020, Mattel’s net sales were up 10% to $1.6 billion. MAT‘s reported gross margin of 51.4%, signals a 300 basis points improvement. MAT’s reported net income was $130.5 million while its adjusted EBITDA was up 53% to $283.8 million.

With a $303.9 million stake in Mattel, Mason Hawkin’s Southeastern Asset Management owns 17.4 million shares of the company as of the end of the fourth quarter of 2020. Our database shows that 25 hedge funds held stakes in Mattel as of the end of the fourth quarter, versus 26 funds in the third quarter.

In their Q3 2020 Investor Letter, Longleaf Partners’ highlighted a few stocks and Mattel Inc (NASDAQ:MAT) is one of them. Here is what Longleaf Partners’ stated:

“Mattel (21%, 1.25%), the classic toy company, was another strong contributor in the quarter. Although this year’s revenues will be down due to global lockdowns shutting stores, the company is on track to increase its annual earnings before interest, taxes, depreciation and amortization (EBITDA) with higher gross margins and the successful execution of its outsourced manufacturing strategy. Barbie delivered another excellent performance, gaining seven points of U.S. doll market share in the second quarter, while growing its revenues as competitors shrunk. Mattel also released a new Barbie special on Netflix in September, part of a promising long-term push into intellectual property licensing. American Girl, a brand that has struggled for years, doubled its digital sales during the quarter as well. With higher profitability, shoppers returning to stores and a strong new digital media presence behind its biggest brands, CEO Ynon Kreiz’s strategy is beginning to pay off.”