Funko's (FNKO) "Buy" Rating Reaffirmed at DA Davidson

Key Points

• DA Davidson has reiterated a "buy" rating for Funko (NASDAQ:FNKO) with a price target of $7.00, implying a potential upside of 64.71% from the current stock price.
• Multiple analysts have differing views on the stock, with one lowering it to a "sell" rating and another moving it from "sell" to "neutral," resulting in an average rating of "Hold" and a consensus target price of $9.88.
• Funko's shares recently traded at $4.25, and the company reported a net loss of $0.33 per share for the last quarter, although this was better than expected by analysts.

Funko (NASDAQ:FNKO - Get Free Report)'s stock had its "buy" rating reiterated by DA Davidson in a note issued to investors on Monday,Benzinga reports. They presently have a $7.00 price objective on the stock. DA Davidson's price target would indicate a potential upside of 94.99% from the company's current price. DA Davidson also issued estimates for Funko's Q2 2025 earnings at ($0.45) EPS, FY2025 earnings at ($0.28) EPS and FY2026 earnings at $0.31 EPS.

A number of other brokerages have also recently commented on FNKO. Wall Street Zen cut shares of Funko from a "hold" rating to a "sell" rating in a research note on Friday, July 18th. The Goldman Sachs Group upgraded shares of Funko from a "sell" rating to a "neutral" rating and dropped their target price for the company from $7.00 to $5.50 in a research report on Wednesday, May 14th. One equities research analyst has rated the stock with a sell rating, two have given a hold rating and two have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $9.88.

Funko Stock Performance

Shares of NASDAQ FNKO traded down $0.25 during midday trading on Monday, reaching $3.59. 2,305,725 shares of the stock were exchanged, compared to its average volume of 1,094,428. The firm has a market cap of $197.23 million, a price-to-earnings ratio of -9.70 and a beta of 0.80. Funko has a twelve month low of $3.48 and a twelve month high of $14.65. The firm has a 50-day simple moving average of $4.59 and a two-hundred day simple moving average of $7.14. The company has a quick ratio of 0.54, a current ratio of 0.85 and a debt-to-equity ratio of 0.44.

Funko (NASDAQ:FNKO - Get Free Report) last issued its quarterly earnings data on Thursday, May 8th. The company reported ($0.33) EPS for the quarter, topping analysts' consensus estimates of ($0.43) by $0.10. The business had revenue of $190.74 million for the quarter, compared to analysts' expectations of $191.96 million. Funko had a negative net margin of 1.92% and a negative return on equity of 5.01%. The business's revenue was down 11.6% on a year-over-year basis. During the same quarter last year, the company earned ($0.17) EPS. As a group, analysts anticipate that Funko will post -0.12 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Andrew David Oddie sold 9,580 shares of the stock in a transaction dated 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 in the company, valued at $258,926.88. This represents a 15.51% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Cynthia W. Williams sold 47,457 shares of the stock in a transaction dated Wednesday, May 21st. The shares were sold at an average price of $3.94, for a total transaction 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 $129,109.86. This trade represents a 59.15% decrease in their ownership of the stock. The disclosure for this sale can be found here. 3.27% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Nomura Holdings Inc. raised its holdings in shares of Funko by 19.8% during the 4th quarter. Nomura Holdings Inc. now owns 2,452,923 shares of the company's stock worth $32,845,000 after acquiring an additional 404,849 shares during the period. Vanguard Group Inc. raised its holdings in shares of Funko by 2.7% during the 4th quarter. Vanguard Group Inc. now owns 1,958,331 shares of the company's stock worth $26,222,000 after acquiring an additional 50,877 shares during the period. Dimensional Fund Advisors LP raised its holdings in shares of Funko by 17.9% during the 4th quarter. Dimensional Fund Advisors LP now owns 1,544,963 shares of the company's stock worth $20,688,000 after acquiring an additional 234,981 shares during the period. Marshall Wace LLP raised its holdings in shares of Funko by 384.3% during the 4th quarter. Marshall Wace LLP now owns 1,542,440 shares of the company's stock worth $20,653,000 after acquiring an additional 1,223,939 shares during the period. Finally, Assenagon Asset Management S.A. raised its position in Funko by 952.8% in the first quarter. Assenagon Asset Management S.A. now owns 1,235,437 shares of the company's stock valued at $8,475,000 after purchasing an additional 1,118,090 shares during the period. Hedge funds and other institutional investors 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.