Market observers are closely watching Funko, Inc. as DA Davidson recently revised its financial outlook, significantly lowering earnings estimates for the pop culture collectibles giant’s second quarter of 2025. This notable adjustment, revealed in a research report issued on Tuesday, July 29th, sees analyst K. Cox now projecting earnings of a deeper loss at ($0.45) per share, a considerable reduction from the prior estimate of ($0.22).
Despite the downward revision in earnings forecasts, DA Davidson maintains a “Buy” rating on Funko’s stock, setting a target price of $7.00. This stance contrasts with the broader consensus for Funko’s current full-year earnings, which stands at ($0.12) per share, and DA Davidson’s own FY2025 earnings estimate of ($0.28) EPS, signaling a cautious but still optimistic long-term view from the firm.
The brokerage landscape surrounding Funko (FNKO) has been dynamic, with several other firms also adjusting their positions. Notably, one brokerage downgraded Funko shares from a “hold” to a “sell” rating on July 18th, while The Goldman Sachs Group moved from a “sell” to a “neutral” rating, though lowering their price objective from $7.00 to $5.50 on May 14th, reflecting diverse opinions within the financial analysis community.
Funko’s stock performance reflects this volatile period, with shares opening at $3.84 on Thursday. The company has experienced significant price fluctuations over the past year, recording a one-year low of $3.50 and a high of $14.65, demonstrating the challenging market trends impacting the entertainment collectibles sector and investor confidence.
Further financial scrutiny reveals a market capitalization of $210.97 million for Funko, alongside a P/E ratio of -10.38 and a beta of 0.80, indicating its sensitivity to broader market movements. Key financial health indicators, such as a debt-to-equity ratio of 0.44, a current ratio of 0.85, and a quick ratio of 0.54, suggest areas for potential focus in its operational liquidity and leverage. The stock’s moving averages, $4.59 (50-day) and $7.14 (200-day), highlight a recent downward trend.
The company’s last quarterly earnings report, announced on Thursday, May 8th, showed Funko exceeding analyst expectations with a reported ($0.33) EPS, surpassing the consensus estimate of ($0.43). Despite this beat, the financial results indicated a negative net margin of 1.92% and a negative return on equity of 5.01%, with revenue of $190.74 million slightly missing the consensus but representing an 11.6% year-over-year decline.
Institutional investor activity in Funko’s stock has shown mixed trends, with several firms modifying their holdings. Parcion Private Wealth LLC increased its stake by 64.8%, now owning 19,525 shares, while CWM LLC significantly grew its ownership by 571.4%. Public Employees Retirement System of Ohio also saw a 46.5% increase. Collectively, institutional investors and hedge funds now hold a substantial 99.15% of the stock, underscoring their significant presence in Funko’s ownership structure.
In notable insider trading news, CEO Cynthia W. Williams executed a sale of 47,457 shares on May 21st at an average price of $3.94, totaling over $186,000, reducing her direct ownership by nearly 60%. Another insider also sold 9,580 shares on May 13th for approximately $47,500. These transactions provide further insights into internal perspectives on the company’s financial trajectory and the Funko FNKO market.
Funko, Inc. continues to operate as a prominent pop culture consumer products company, specializing in designing, sourcing, and distributing licensed products globally. Its extensive portfolio includes figures, apparel, homewares, and digital non-fungible tokens, spanning various media and entertainment content, positioning it at the forefront of the collectibles industry amidst evolving market trends.
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