Michael C. Lunsford, a director at Funko, Inc. (NASDAQ:FNKO), recently engaged in transactions involving the company's Class A common stock, according to the latest SEC filings. On October 1, 2024, Lunsford sold 7,361 shares at prices ranging from $11.92 to $12.11, with the total value of the shares sold amounting to approximately $88,443.
The transactions come after Lunsford acquired 17,000 shares on September 30, 2024, through the vesting of restricted stock units (RSUs). The RSUs were granted to Lunsford on August 7, 2024, and vested at the end of September, contingent on his continued service with the company. Following the vesting of the RSUs and the subsequent sale to cover taxes, Lunsford's holdings in Funko decreased but still amounted to 108,613 shares of Class A common stock.
Investors and followers of Funko, a company known for its pop culture-related collectibles and toys, often monitor insider transactions as they can provide insights into the company's financial health and the confidence level of its executives and directors. The sale by Lunsford is part of the normal course of events when RSUs vest and is often done to cover tax obligations associated with the vesting.
For those interested in the details of the transactions, the specific prices at which Lunsford sold the shares have been disclosed, with a weighted average price of $12.0152 per share. The director has also committed to providing full information regarding the number of shares sold at each separate price within the reported range, if requested.
The transactions were formally reported in an SEC Form 4 document, signed by an attorney-in-fact on behalf of Michael C. Lunsford on October 2, 2024.
In other recent news, Funko, a prominent pop culture consumer products company, has reported a series of significant developments. The company has seen a rise in earnings and revenue, with a 3% increase in net sales, hitting $248 million, and a strong adjusted EBITDA of $28 million, exceeding expectations. Furthermore, Funko has maintained its full-year guidance, projecting net sales to range between $1.047 billion and $1.103 billion and adjusted EBITDA to reach between $65 million and $85 million.
Funko also announced a partnership with the National Football League (NFL), allowing the company to offer custom Pop! Yourself figures featuring t-shirts and hoodies with logos from any of the 32 NFL teams. This collaboration is anticipated to attract additional consumers to Funko's diverse product range and significantly contribute to the company's growth. B.Riley has reaffirmed its Buy rating on Funko shares following this announcement.
In addition, B.Riley has increased its price target for Funko shares to $15.00, up from the previous $13.00, following a non-deal roadshow with Funko's management. This decision is based on the firm's optimism about Funko's potential for accelerated sales growth and AEBITDA margin expansion anticipated for 2025 and beyond.
In a move highlighting Funko's commitment to retaining its executive talent, the company has granted a monthly relocation stipend and other benefits to Chief Commercial Officer Andrew Oddie, due to his temporary move to the Greater Los Angeles area and additional responsibilities. This decision is part of Funko's ongoing strategy to strengthen its leadership team and operational capabilities.
InvestingPro Insights
Adding context to Michael C. Lunsford's recent stock transactions, Funko Inc . (NASDAQ:FNKO) has been experiencing some notable market performance. According to InvestingPro data, the company has seen a strong return over the last three months, with a 25.27% price total return. Even more impressive is the 91.68% price total return over the last six months, indicating significant investor interest in the stock.
However, it's important to note that despite these positive price movements, Funko faces some financial challenges. An InvestingPro Tip reveals that the company is not expected to be profitable this year, which aligns with the reported operating income of -$27.93 million for the last twelve months as of Q2 2023. This could explain why four analysts have revised their earnings downwards for the upcoming period, another insight provided by InvestingPro.
The company's revenue for the last twelve months stands at $1.07 billion, with a gross profit margin of 35.82%. While these figures show Funko's substantial market presence in the collectibles industry, the negative operating income margin of -2.62% suggests ongoing profitability challenges.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and metrics beyond what's mentioned here. In fact, there are 8 more InvestingPro Tips available for Funko, providing a deeper understanding of the company's financial position and market performance.
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