Tracy D. Daw, the Chief Legal Officer of Funko, Inc. (NASDAQ:FNKO), a company known for its pop culture collectibles, has recently sold 10,000 shares of the company's Class A common stock. The sale, which took place on September 13, was executed at a price of $12.00 per share, resulting in a total transaction value of $120,000.
The transaction was made public through a Form 4 filing with the Securities and Exchange Commission, which was filed on September 17. According to the filing, the shares sold by Daw were part of a pre-arranged 10b5-1 trading plan. Such plans allow company insiders to establish predetermined trading arrangements for selling stocks at a future date, providing a defense against potential accusations of insider trading.
Following the sale, Daw's direct ownership in Funko's Class A common stock has decreased to 6,362 shares. It's important to note that this figure does not include any common units beneficially owned by Daw.
Investors often monitor insider sales as they can provide insights into executives' perspectives on the company's current valuation and future prospects. However, sales made under 10b5-1 plans are typically less indicative of an insider’s belief about the company's future and more about personal financial planning.
Funko, Inc., headquartered in Everett, Washington, operates within the toys and games sector, producing a wide array of licensed pop culture collectibles. The company's products are diverse, ranging from vinyl figures to plush toys, and are popular among collectors and fans of various entertainment franchises.
Investors and analysts continue to watch insider activity and company performance for signs of growth potential and value in the market. Funko's stock performance and future sales by company insiders will be of particular interest to the investment community as they assess the company's trajectory in a competitive industry.
In other recent news, Funko has been making significant strides in its business operations. The pop culture consumer products company reported a 3% increase in net sales in its Q2 earnings call, reaching $248 million, and a robust adjusted EBITDA of $28 million, surpassing expectations. Funko has maintained its full-year guidance, expecting net sales to range between $1.047 billion and $1.103 billion and adjusted EBITDA to hit between $65 million and $85 million.
In addition, Funko has announced a partnership with the National Football League (NFL), enabling it to offer custom Pop! Yourself figures featuring t-shirts and hoodies with logos from any of the 32 NFL teams. B.Riley, following this announcement, reaffirmed its Buy rating on Funko shares and raised its price target for Funko shares to $15.00, up from the previous $13.00.
Furthermore, Funko has made changes to the compensation arrangement for its Chief Commercial Officer, Andrew Oddie, including a monthly relocation stipend and other benefits due to his temporary move to the Greater Los Angeles area and additional responsibilities. These recent developments underscore Funko's commitment to retaining its executive talent and supporting their transition as they take on more significant roles within the company.
InvestingPro Insights
Tracy D. Daw's recent sale of Funko, Inc. shares has put the spotlight on the company's financial metrics and market performance. According to InvestingPro data, Funko has a market capitalization of approximately $608.98 million. Despite challenges, the company has witnessed a significant return over the last week, with a price total return of 10.52%. Over the last six months, the stock has seen a remarkable uptick, with a 77.9% price total return, reflecting a strong investor sentiment.
InvestingPro Tips indicate that while Funko is trading at a high EBITDA valuation multiple, analysts have revised their earnings downwards for the upcoming period, and they do not anticipate the company will be profitable this year. The company's P/E ratio stands at -13.01, and it has not been profitable over the last twelve months. These factors are crucial for investors considering the implications of insider sales and the company's valuation in the market.
For those looking for more in-depth analysis, there are additional InvestingPro Tips available that could provide further insights into Funko's financial health and stock performance. These tips are part of the comprehensive resources offered by InvestingPro, which can be accessed for Funko at https://www.investing.com/pro/FNKO.
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