Mattel (MAT) Stock News

The analyst firm raised its rating on the toy maker from Neutral, signaling a more favorable view on the stock.

Privately held Zuru Group is reported to be weighing a takeover offer for Mattel, following a similar report about Authentic Brands Group. Activist investors Ariel Investments and Southeastern Asset Management have publicly called for a sale. Mattel shares rose 2.8% on the news. The company's financial performance has weakened, with Barbie billings declining and an operating loss in the first half of 2026. Q3 results are due later this month.

Ariel Investments Co-CEO John Rogers says Ynon Kreiz's exit as Mattel CEO played a big part in the firm's push for strategic alternatives. Rogers told CNBC that Kreiz had a solid restructuring plan but Ariel is impatient under new CEO Roger Lynch and sees Mattel shares as undervalued.

Ariel Investments, with a 5.4% stake, sent a letter to Mattel's board urging exploration of a sale, merger, or asset divestiture. Mattel acknowledged the letter. The push follows a reported approach from Authentic Brands Group at over $20 per share. Mattel shares jumped 19% last week on that news.

Ariel Investments said Mattel could command a significant premium in a potential sale, suggesting the toy maker's shares are undervalued under its current structure.

Ariel Investments said Mattel shares are significantly undervalued under the current corporate structure. The firm did not disclose specific valuation metrics or a price target.

Ariel Investments, with a 5.4% stake, sent a letter to Mattel's board urging a formal exploration of strategic alternatives, including a sale. Mattel acknowledged the letter. The move follows a report of takeover interest from Authentic Brands Group and a CEO transition.

Authentic Brands Group has made an approach to acquire Mattel for a reported $6 billion or more, per the Wall Street Journal. The offer values Mattel at over $20 per share, a roughly 58% premium.