The Goldman Sachs Group Has Lowered Expectations for Funko (NASDAQ:FNKO) Stock Price

Key Points

• Goldman Sachs has reduced Funko's price target from $5.50 to $2.50, indicating a potential downside of 6.54% from the current stock price, while maintaining a "neutral" rating.
• Funko's recent earnings report showed a loss of ($0.48) per share, missing estimates and reflecting a 21.9% decline in revenue year-over-year.
• In the broader market context, other brokerages have issued mixed ratings on Funko, with one downgrading it to "sell" and another maintaining a "buy" rating, highlighting a divided outlook on the company's future performance.

Funko (NASDAQ:FNKO - Get Free Report) had its price target decreased by equities research analysts at The Goldman Sachs Group from $5.50 to $2.50 in a research report issued on Thursday,Benzinga reports. The brokerage presently has a "neutral" rating on the stock. The Goldman Sachs Group's price objective would suggest a potential downside of 6.54% from the company's current price.

A number of other brokerages also recently weighed in on FNKO. Wall Street Zen downgraded Funko from a "hold" rating to a "sell" rating in a research report on Friday, July 18th. DA Davidson reiterated a "buy" rating and issued a $7.00 price target on shares of Funko in a research note on Monday, July 28th. One equities 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's stock. Based on data from MarketBeat.com, Funko presently has an average rating of "Hold" and an average price target of $9.13.

Funko Price Performance

FNKO stock traded down $0.25 during midday trading on Thursday, reaching $2.68. 965,951 shares of the company's stock traded hands, compared to its average volume of 1,175,248. The company has a 50-day simple moving average of $4.43 and a two-hundred day simple moving average of $6.52. Funko has a 1-year low of $2.22 and a 1-year high of $14.65. The company has a market cap of $146.96 million, a price-to-earnings ratio of -2.21 and a beta of 0.81. The company has a quick ratio of 0.54, a current ratio of 0.64 and a debt-to-equity ratio of 0.02.

Funko (NASDAQ:FNKO - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The company reported ($0.48) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.18) by ($0.30). The company had revenue of $193.47 million during the quarter, compared to the consensus estimate of $206.18 million. Funko had a negative return on equity of 19.97% and a negative net margin of 6.72%. The firm's revenue for the quarter was down 21.9% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.10 earnings per share. On average, analysts anticipate that Funko will post -0.12 earnings per share for the current year.

Insider Activity

In related news, CEO Cynthia W. Williams sold 47,457 shares of Funko stock in a transaction that occurred on Wednesday, May 21st. The shares were sold at an average price of $3.94, for a total value of $186,980.58. Following the completion of the transaction, the chief executive officer directly owned 32,769 shares in the company, valued at approximately $129,109.86. The trade was a 59.15% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 3.27% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in Funko by 4.9% in the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 17,783 shares of the company's stock worth $238,000 after purchasing an additional 828 shares during the last quarter. Price T Rowe Associates Inc. MD increased its position in shares of Funko by 6.2% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 41,181 shares of the company's stock valued at $552,000 after acquiring an additional 2,413 shares during the period. Invesco Ltd. increased its position in shares of Funko by 1.8% during the fourth quarter. Invesco Ltd. now owns 150,771 shares of the company's stock valued at $2,019,000 after buying an additional 2,668 shares during the period. Wells Fargo & Company MN increased its position 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 buying an additional 3,070 shares during the period. Finally, Skandinaviska Enskilda Banken AB publ grew its holdings in shares of Funko by 15.1% during the first quarter. Skandinaviska Enskilda Banken AB publ now owns 27,429 shares of the company's stock valued at $188,000 after buying an additional 3,603 shares during the last quarter. 99.15% of the stock is currently owned by hedge funds and other institutional investors.

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.

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