Michael C. Lunsford, a director at 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 totaled approximately $1,008,800.
Following the sale, Lunsford retains ownership of 11,613 shares in the company. The transaction was executed directly by Lunsford and was not part of an equity swap. This sale reflects a substantial reduction in his stake in the company, signaling a potential shift in his investment strategy.
Funko, known for its pop culture-themed collectibles and toys, continues to navigate a competitive market landscape. Investors and analysts will be watching closely to see how this insider transaction might impact the company’s stock performance.
In other recent news, Funko, Inc. reported its third-quarter financial results for 2024, which highlighted a 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 projection to between $85 million and $90 million. Notably, Funko is experiencing growth in its direct-to-consumer (DTC) sales, especially in Canada, and is amplifying its marketing efforts for the upcoming holiday season.
In addition, Funko’s fourth quarter guidance anticipates net sales between $280 million and $294 million, with gross margins of 38% to 40%. The company plans to escalate promotional activities, potentially leading to a decrease in gross margins due to increased marketing expenditures. Furthermore, Funko is diversifying its supply base to mitigate tariff risks, with a third of its products currently being 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 shifting retail landscape.
InvestingPro Insights
The recent sale of Funko (NASDAQ:FNKO) shares by director Michael C. Lunsford comes at a time when the company’s stock has shown mixed performance. According to InvestingPro data, Funko’s stock has experienced a significant 45.83% price total return over the past year, despite a 16.59% decline in the last month. This volatility aligns with an InvestingPro Tip indicating that the stock “has fared poorly over the last 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 last twelve months, an InvestingPro Tip suggests that “analysts predict the company will be profitable this year.” This forecast could potentially explain why insiders like Lunsford might be adjusting their positions.
The company’s revenue for the last twelve months stands at $1.05 billion, with a gross profit margin of 37.43%. However, Funko has experienced a revenue decline of 7.96% over the same period, which may be a factor in the recent insider selling activity.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips for Funko, providing deeper insights into the company’s financial outlook and market position.
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