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Yves Le Pendeven, the Chief Financial Officer of Funko, Inc. (NASDAQ:FNKO), recently reported selling shares of the company’s Class A common stock. According to a Form 4 filing with the Securities and Exchange Commission, Le Pendeven sold a total of 1,326 shares over two separate transactions. The sales took place on March 7 and March 10, with prices ranging from $8.1628 to $8.8808 per share, totaling approximately $11,546. The transactions occurred as Funko’s stock, currently trading at $7.69, has experienced a significant 34% decline over the past week. InvestingPro analysis indicates the stock is currently undervalued, with analysts projecting improved profitability this year.
In addition to the sales, Le Pendeven also reported acquiring shares through the vesting of restricted stock units (RSUs) on March 6 and March 8. These acquisitions totaled 3,631 shares, adding to his holdings in Funko. The acquisitions were made at no cost, as each RSU represents the right to receive one share of Class A common stock. For comprehensive insider trading analysis and additional insights, InvestingPro subscribers can access detailed reports covering executive transactions and company fundamentals.
Following these transactions, Le Pendeven holds 34,809 shares of Funko’s Class A common stock directly. The sales of shares were executed under a pre-arranged trading plan, consistent with Rule 10b5-1, to cover taxes upon the vesting of the restricted stock units. Despite recent market pressure, technical indicators from InvestingPro suggest the stock is in oversold territory, with multiple additional ProTips available for subscribers.
In other recent news, Funko Inc . announced its revised sales guidance for the year 2025, projecting net sales to be between $1.05 billion and $1.082 billion. This adjustment aligns with figures discussed during their earnings call and reflects the company’s cautious outlook amid various market challenges. Funko’s fourth-quarter 2024 earnings exceeded expectations, reporting an earnings per share of $0.08 against a forecast of $0.00 and revenue of $293.7 million, surpassing the expected $285.41 million. Despite this positive earnings report, DA Davidson reduced Funko’s stock target price from $16.00 to $13.00 but maintained a Buy rating due to the company’s strong international sales and ongoing growth initiatives.
Funko’s management has highlighted several risks that could impact future results, including tariffs on Chinese goods and potential retaliatory tariffs on Vietnamese goods. The company is also facing shipping disruptions at the Mexican border, which have affected its first-quarter 2025 guidance. Nevertheless, Funko plans to stimulate year-over-year sales growth in the second half of 2025 by expanding its marketing strategies and leveraging successful international sales tactics in the U.S. market.
Further, Funko’s gross margin improved significantly, rising by 4.8 percentage points year-over-year, with direct-to-consumer sales accounting for 29% of gross sales. The company has also reduced its debt from $273.6 million to $182.8 million. These developments, alongside strategic initiatives, provide a basis for optimism despite the challenges posed by tariffs and economic uncertainties.
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