DA Davidson Comments on Funko's Q2 Earnings (NASDAQ:FNKO)

Key Points

• DA Davidson has cut its Q2 2025 earnings per share (EPS) estimates for Funko from ($0.22) to ($0.45), maintaining a "Buy" rating with a price target of $7.00.
• Funko's shares recently opened at $3.90 and have a fifty-day moving average price of $4.59, indicating a significant drop from a one-year high of $14.65.
• Over 99% of Funko's stock is owned by institutional investors, with notable buying activity in recent quarters, suggesting ongoing interest despite the company's bearish earnings outlook.

Funko, Inc. (NASDAQ:FNKO - Free Report) - DA Davidson lowered their Q2 2025 EPS estimates for Funko in a note issued to investors on Tuesday, July 29th. DA Davidson analyst K. Cox now anticipates that the company will post earnings per share of ($0.45) for the quarter, down from their prior forecast of ($0.22). DA Davidson currently has a "Buy" rating and a $7.00 target price on the stock. The consensus estimate for Funko's current full-year earnings is ($0.12) per share. DA Davidson also issued estimates for Funko's FY2025 earnings at ($0.28) EPS.

Funko (NASDAQ:FNKO - Get Free Report) last posted its quarterly earnings data on Thursday, May 8th. The company reported ($0.33) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.43) by $0.10. Funko had a negative net margin of 1.92% and a negative return on equity of 5.01%. The company had revenue of $190.74 million for the quarter, compared to analyst estimates of $191.96 million. During the same quarter last year, the firm posted ($0.17) earnings per share. The business's quarterly revenue was down 11.6% on a year-over-year basis.

Other analysts have also recently issued research reports about the stock. The Goldman Sachs Group raised shares of Funko from a "sell" rating to a "neutral" rating and dropped their price objective for the stock from $7.00 to $5.50 in a report on Wednesday, May 14th. Wall Street Zen downgraded Funko from a "hold" rating to a "sell" rating in a report on Friday, July 18th. One research analyst has rated the stock with a sell rating, two have issued a hold rating and two have issued a buy rating to the company. According to data from MarketBeat, Funko has an average rating of "Hold" and a consensus target price of $9.88.

Funko Stock Up 0.7%

Shares of FNKO stock traded up $0.03 during mid-day trading on Thursday, reaching $3.62. 370,970 shares of the company were exchanged, compared to its average volume of 1,089,454. The company has a market capitalization of $198.59 million, a P/E ratio of -9.77 and a beta of 0.82. The business's 50 day simple moving average is $4.58 and its 200 day simple moving average is $6.98. The company has a debt-to-equity ratio of 0.44, a quick ratio of 0.54 and a current ratio of 0.85. Funko has a fifty-two week low of $3.48 and a fifty-two week high of $14.65.

Institutional Investors Weigh In On Funko

Large investors have recently added to or reduced their stakes in the stock. American Century Companies Inc. lifted its position in Funko by 18.5% in the fourth quarter. American Century Companies Inc. now owns 680,231 shares of the company's stock worth $9,108,000 after purchasing an additional 106,037 shares during the period. Vanguard Group Inc. increased its stake in shares of Funko by 2.7% in the fourth quarter. Vanguard Group Inc. now owns 1,958,331 shares of the company's stock valued at $26,222,000 after buying an additional 50,877 shares in the last quarter. ExodusPoint Capital Management LP acquired a new stake in shares of Funko in the fourth quarter valued at $342,000. Landscape Capital Management L.L.C. acquired a new stake in shares of Funko in the fourth quarter valued at $3,606,000. Finally, Wells Fargo & Company MN increased its stake in shares of Funko by 18.0% in the fourth quarter. Wells Fargo & Company MN now owns 20,090 shares of the company's stock valued at $269,000 after buying an additional 3,070 shares in the last quarter. Institutional investors own 99.15% of the company's stock.

Insider Activity at Funko

In related news, CEO Cynthia W. Williams sold 47,457 shares of the business's stock in a transaction that occurred on Wednesday, May 21st. The stock was sold at an average price of $3.94, for a total value of $186,980.58. Following the completion of the sale, the chief executive officer owned 32,769 shares of the company's stock, valued at approximately $129,109.86. The trade was a 59.15% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Andrew David Oddie sold 9,580 shares of the business's stock in a transaction that occurred on Tuesday, May 13th. The shares were sold at an average price of $4.96, for a total value of $47,516.80. Following the completion of the sale, the insider directly owned 52,203 shares of the company's stock, valued at approximately $258,926.88. The trade was a 15.51% decrease in their position. The disclosure for this sale can be found here. Insiders own 3.27% of the company's stock.

Funko Company Profile

Funko, Inc, a pop culture consumer products company, designs, sources, and distributes licensed pop culture products in the United States, Europe, and internationally. The company provides media and entertainment content, including movies, television (TV) shows, video games, music, and sports; figures, handbags, backpacks, wallets, apparel, accessories, plush products, homewares, and digital non-fungible tokens; and art prints and vinyl records, posters, soundtracks, toys, books, games, and other collectibles.