Michael C. Lunsford, a director of Funko, Inc. (NASDAQ 🙂), recently sold a significant portion of his holdings in the company. According to a Form 4 filing with the Securities and Exchange Commission, Lunsford sold 97,000 shares of Funko’s Class A common stock on November 15, 2024, at a price of $10.40 per share. This transaction amounted to approximately $1,008,800.
Following the sale, Lunsford retains ownership of 11,613 shares of the company. The transaction was executed directly by Lunsford and was not part of a share exchange. This sale reflects a substantial reduction in its stake in the company, indicating a possible change in its investment strategy.
Funko, known for its pop culture-themed toys and collectibles, continues to navigate a competitive market landscape. Investors and analysts will be watching to see how this insider transaction could affect the company’s stock performance.
In other recent news, Funko, Inc. reported its third-quarter financial results for 2024, which highlighted net sales of $293 million, a gross margin of 41%, and adjusted EBITDA of $31 million. The company also adjusted its full-year net sales forecast to a range of $1.037 billion to $1.05 billion and raised its adjusted EBITDA guidance to between $85 million and $90 million. In particular, Funko is seeing growth in its direct-to-consumer (DTC) sales, especially in Canada, and is amplifying its marketing efforts for the upcoming holiday season.
Additionally, Funko’s guidance for the fourth quarter anticipates net sales between $280 million and $294 million, with gross margins of 38% to 40%. The company plans to intensify promotional activities, which could lead to a decrease in gross margins due to increased marketing expenses. Additionally, Funko is diversifying its supply base to mitigate tariff risks, and currently one-third of its products are manufactured in China.
These are recent developments and reflect the company’s focus on strategic initiatives to drive growth and profitability. Despite challenges in the wholesale channel and global market uncertainties, Funko’s proactive measures in cost reduction, operational efficiency and marketing strategies demonstrate its commitment to navigating the changing retail landscape.
InvestingPro Insights
Director Michael C. Lunsford’s recent sale of Funko (NASDAQ:FNKO) stock comes at a time when the company’s stock has shown mixed performance. According to data from InvestingPro, Funko shares have seen a significant total price return of 45.83% over the past year, despite a drop of 16.59% in the last month. This volatility aligns with advice from InvestingPro that the stock has “done poorly over the past month.”
Funko’s financial health presents a complex picture. While the company is not currently profitable, with a negative P/E ratio of -13.4 over the trailing twelve months, a tip from InvestingPro suggests that “analysts predict the company will be profitable this year.” This forecast could potentially explain why insiders like Lunsford could be adjusting their positions.
The company’s revenue for the trailing twelve months is $1.05 billion, with a gross profit margin of 37.43%. However, Funko has seen a 7.96% revenue decline over the same period, which may be a factor in the recent insider selling activity.
For investors looking for a more comprehensive analysis, InvestingPro offers five additional tips for Funko, providing deeper insights into the company’s financial prospects and market position.
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