Funko, Inc. (NASDAQ:FNKO) director Michael C. Lunsford recently engaged in transactions involving the company's stock, according to the latest Form 4 filing with the Securities and Exchange Commission. On June 14, 2024, Lunsford sold 1,295 shares of Funko's Class A common stock at a weighted average price of $10.266 per share, totaling approximately $13,294 in value.
The sale was executed in multiple transactions with prices ranging from $10.20 to $10.32. The transactions took place following the vesting of restricted stock units (RSUs) on June 13, 2024, where shares were sold to cover tax obligations as per a sell-to-cover instruction. Post-sale, Lunsford's holdings in the company decreased to 121,478 shares of Class A common stock.
It's also reported that on June 13, 2024, Lunsford acquired 4,688 RSUs that convert into Class A common stock on a one-for-one basis. These RSUs were granted on June 13, 2023, and vested fully on the first anniversary of the grant date, contingent on his continued service with Funko through the vesting date.
Investors and followers of Funko, Inc. often monitor insider transactions as they provide insights into how the company's executives and directors are interacting with their own stock. Such transactions can be indicative of the insiders' views on the company's current valuation and future prospects.
In other recent news, Funko Inc . has been making significant strides in its operations and financial performance. The company reported strong Q1 net sales of $216 million and an adjusted EBITDA of $10 million, maintaining their 2024 financial outlook with expected net sales between $1.047 billion and $1.103 billion, and an adjusted EBITDA between $65 million and $85 million. Cynthia Williams, a former executive at Hasbro (NASDAQ:HAS) and Amazon (NASDAQ:AMZN), has been appointed as the new CEO, with a focus on growth opportunities such as direct-to-consumer sales and international expansion.
Furthermore, DA Davidson and B.Riley have increased their price targets for Funko shares, reflecting confidence in Williams' leadership and the company's future performance. DA Davidson raised the price target from $10.50 to $12.00 and B.Riley increased it from $12.00 to $13.00. These adjustments were made following meetings with Williams and a positive outlook on the company's strategic initiatives, including the forthcoming launch of Funko Fusion, a new video game set to be released on September 13.
These are just a few of the recent developments at Funko, demonstrating the company's commitment to growth and profitability under its new leadership.
InvestingPro Insights
Funko, Inc. (NASDAQ:FNKO) has seen a flurry of activity that may interest investors keeping an eye on insider transactions as well as the company's stock performance. According to recent data from InvestingPro, Funko's market capitalization stands at approximately $557.43 million. Despite the insider sales, the company has experienced significant returns over the past week, month, and three months, with a 1-week price total return of 8.95%, a 1-month return of 21.91%, and a 3-month return of 69.39%.
InvestingPro Tips indicate a high shareholder yield, which could be a positive sign for investors seeking value. Additionally, three analysts have revised their earnings upwards for the upcoming period, suggesting that there may be optimism about the company's future earnings potential. However, it is important to note that the company's short-term obligations currently exceed its liquid assets, which could present liquidity concerns.
Looking at Funko's valuation metrics, the company's P/E Ratio is notably negative at -4.2, reflecting challenges in profitability, as also indicated by the last twelve months leading up to Q1 2024. Moreover, analysts do not anticipate the company will be profitable this year, and it has not been profitable over the last twelve months. Despite these challenges, the stock has seen a large price uptick over the last six months, with a 45.16% total return.
For investors seeking a deeper dive into Funko's financial health and stock performance, InvestingPro offers additional tips and insights. As of now, there are more tips available on InvestingPro, which can be accessed by visiting https://www.investing.com/pro/FNKO. Interested readers can also take advantage of an exclusive offer using coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing even more valuable insights to inform their investment decisions.
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