Mattel (NASDAQ:MAT) stock is a hot topic on Friday after activist investor Barrington Capital expressed interest in making changes at the family entertainment company.
Barrington Capital takes issue with the fact that MAT stock is down 13.2% over the last two years. The activist investor notes that this has the company’s shares lagging 22.3% behind the S&P 500.
Barrington has presented Mattel Executive Chairman and CEO Ynon Kreiz with a few measures to overcome this problem and create shareholder value. That includes seeking strategic alternatives for the Fisher-Price and American Girl brands.
More Changes to Save MAT Stock
Other recommendations from Barrington include ceasing excessive stock-based compensation. It also wants the company to enact a $2 billion share repurchase program “with an accelerated share repurchase program.”
Finally, Barrington Capital is seeking management changes. It wants Mattel to split the positions of Chairman and CEO. Instead, it wants the Leader Director of the Board of Directors to become Chairman. The investor believes this would lead to better management of the company.
Mattel says that it is aware of the letter from Barrington Capital and is in the process of reviewing the activist investor’s suggestions. The company also says that it looks forward to engaging with Barrington, just like it does with all investors.
MAT stock is up 3.2% as of Friday morning.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
