Shares of Mattel
traded higher late on Thursday after The Wall Street Journal reported activist investor Barington Capital had built an undisclosed stake in the company.
The stock rose 4.3% to $19.05 in after-hours trading. Shares are down 14% in the last year.
On Thursday, the WSJ reported that Barington sent a letter to Mattel Chief Executive Ynon Kreiz telling him the company should pursue strategic alternatives for its Fisher-Price and American Girl businesses.
Barington founder James Mitarotonda also said in the letter that the toymaker should pull back on stock-based compensation and launch a $2 billion share buyback.