DA Davidson Issues Pessimistic Forecast for Funko Earnings

Key Points

• DA Davidson downgraded its FY2026 earnings per share estimate for Funko from $0.42 to $0.31, maintaining a "Buy" rating with a target price of $7.00.
• Goldman Sachs has shifted Funko's rating from "sell" to "neutral," lowering its price target from $7.00 to $5.50.
• Funko reported a quarterly earnings loss of ($0.33) per share, slightly beating analyst expectations but seeing an 11.6% decrease in revenue compared to the previous year.

Funko, Inc. (NASDAQ:FNKO - Free Report) - Investment analysts at DA Davidson decreased their FY2026 EPS estimates for shares of Funko in a report issued on Tuesday, July 29th. DA Davidson analyst K. Cox now anticipates that the company will earn $0.31 per share for the year, down from their previous forecast of $0.42. 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.

Funko (NASDAQ:FNKO - Get Free Report) last posted its quarterly earnings results on Thursday, May 8th. The company reported ($0.33) EPS for the quarter, beating the consensus estimate 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 firm 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. Funko's revenue for the quarter was down 11.6% compared to the same quarter last year.

FNKO has been the topic of several other research reports. The Goldman Sachs Group upgraded shares of Funko from a "sell" rating to a "neutral" rating and cut their price target for the company from $7.00 to $5.50 in a report on Wednesday, May 14th. Wall Street Zen lowered shares of Funko from a "hold" rating to a "sell" rating in a research note on Friday, July 18th. One investment analyst has rated the stock with a sell rating, two have issued a hold rating and two have given a buy rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $9.88.

Funko Trading Down 6.5%

NASDAQ FNKO traded down $0.25 during mid-day trading on Wednesday, hitting $3.59. The company's stock had a trading volume of 2,305,725 shares, compared to its average volume of 1,091,899. Funko has a 52-week low of $3.48 and a 52-week high of $14.65. The stock's fifty day simple moving average is $4.58 and its two-hundred day simple moving average is $6.98. The company has a debt-to-equity ratio of 0.44, a current ratio of 0.85 and a quick ratio of 0.54. The firm has a market capitalization of $197.23 million, a P/E ratio of -9.70 and a beta of 0.81.

Insider Buying and Selling

In other news, insider Andrew David Oddie sold 9,580 shares of the firm'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 transaction of $47,516.80. Following the completion of the sale, the insider owned 52,203 shares of the company's stock, valued at approximately $258,926.88. This trade represents a 15.51% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Cynthia W. Williams sold 47,457 shares of Funko stock in a transaction on Wednesday, May 21st. The stock was sold at an average price of $3.94, for a total transaction of $186,980.58. Following the completion of the transaction, the chief executive officer directly owned 32,769 shares of the company's stock, valued at approximately $129,109.86. This represents a 59.15% decrease in their position. The disclosure for this sale can be found here. 3.27% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Funko

A number of hedge funds have recently added to or reduced their stakes in FNKO. American Century Companies Inc. boosted its holdings 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. boosted its holdings in Funko by 2.7% in the fourth quarter. Vanguard Group Inc. now owns 1,958,331 shares of the company's stock worth $26,222,000 after purchasing an additional 50,877 shares during the period. ExodusPoint Capital Management LP bought a new stake in Funko in the fourth quarter valued at $342,000. Landscape Capital Management L.L.C. acquired a new position in shares of Funko during the fourth quarter valued at $3,606,000. Finally, Wells Fargo & Company MN boosted its holdings in shares of Funko by 18.0% during the fourth quarter. Wells Fargo & Company MN now owns 20,090 shares of the company's stock valued at $269,000 after acquiring an additional 3,070 shares during the period. Institutional investors and hedge funds own 99.15% of the company's stock.

About Funko

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.