Insider Trading and Recent Developments at Funko, Inc.

Andrew David Oddie, the Chief Commercial Officer of Funko, Inc. (NASDAQ:FNKO), has recently sold a significant number of shares in the company. According to the latest filings, Oddie sold a total of 32,682 shares of Funko’s Class A Common Stock, resulting in nearly $393,000 in proceeds. The shares were sold at an average price ranging from $12.0202 to $12.0322.

The transactions took place over two consecutive days, with Oddie selling 10,800 shares on September 23 and another 21,882 shares on September 24. The sales were conducted under a pre-arranged 10b5-1 trading plan, which allows insiders to establish a predetermined schedule for buying or selling shares to avoid accusations of insider trading.

In addition to the sales, Oddie also acquired shares through the exercise of options on both days. On September 23, he exercised options to acquire 10,800 shares at a price of $4.01 per share. The following day, he exercised options for an additional 21,882 shares at the same price, totaling $131,054 for the transactions.

After these transactions, Oddie’s direct ownership in the company stands at 40,372 shares of Class A Common Stock. The recent filings do not reflect any common units the executive may beneficially own.

Investors often monitor insider transactions as they can provide insights into an executive’s view of the company’s current valuation and future prospects. However, sales made under a 10b5-1 trading plan are typically less indicative of insider sentiment, as they are planned in advance to avoid potential conflicts with insider trading laws.

Funko, Inc., headquartered in Everett, Washington, is known for its array of pop culture consumer products, including its highly recognizable collectible figurines. The company operates within the games, toys, and children’s vehicles sector, excluding dolls and bicycles.

Recent Financial Performance

In other recent news, Funko has reported a 3% increase in net sales, reaching $248 million, and a robust adjusted EBITDA of $28 million, surpassing expectations. The company 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 a strategic move, Funko has partnered with the National Football League (NFL) to offer custom Pop! Yourself figures featuring t-shirts and hoodies with logos from any of the 32 NFL teams. This development has led B.Riley to reaffirm its Buy rating on Funko shares, as well as increase its price target from $13.00 to $15.00, citing optimism for accelerated sales growth and AEBITDA margin expansion anticipated for 2025 and beyond. Furthermore, Funko has announced changes to the compensation arrangement for its Chief Commercial Officer, Andrew Oddie, granting him a monthly relocation stipend and other benefits due to his temporary move to the Greater Los Angeles area and additional responsibilities. These recent developments reflect Funko’s commitment to strategic growth and executive talent retention.

InvestingPro Insights

As Funko, Inc. (NASDAQ:FNKO) navigates the dynamic market of pop culture consumer products, recent insider transactions have drawn attention to the company’s stock performance and valuation. InvestingPro data offers a glimpse into some key financial metrics that could provide context to these insider moves.

Funko’s market capitalization sits at approximately $648.36 million, indicating its size within the sector. Despite notable price movements, with a 97.38% price total return over the last six months and a 53.77% return over the last year, the company’s P/E ratio is currently negative at -13.99, reflecting challenges in profitability. The adjusted P/E ratio for the last twelve months as of Q2 2024 further emphasizes this, standing at -11.46. The company’s revenue has experienced a decline of 10.33% in the same period, which may concern investors looking for growth.

InvestingPro Tips highlight that Funko is trading near its 52-week high, with the price at 98.85% of this peak. This could signal strength in investor confidence or, as another tip suggests, indicate that the stock is in overbought territory, with an RSI suggesting caution. Furthermore, the recent significant price uptick over the last six months might prompt investors to consider the sustainability of this growth.

For those interested in deeper analysis, InvestingPro provides additional insights. There are currently 11 more InvestingPro Tips available for Funko, Inc., which can be accessed to help investors make more informed decisions about their investment strategies.

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