Funko POP Marvel Spider-Man action figure
Annats22/Dreamstime
Funko stock has roared in 2021, powered by the popularity of its collectible, big-headed vinyl figures, games, and apparel. One director of the company has grabbed up Funko shares like it was Christmas.
Funko (ticker: FNKO
) stock has soared 80% so far this year, compared with a 26% rise in the S&P 500 index. Third-quarter earnings, reported in November, topped estimates, and sales surged 40%.
Even J.P. Morgan analyst Tami Zakaria, who rates Funko stock at Neutral, conceded after the quarterly report that “demand for Funko products remain very strong driven by innovation, introduction of adjacent categories and a strong entertainment slate.” One bummer has been a delay in the launch of Funko NFTs.Director Charles Denson paid $1.7 million over Dec. 16 and 17 for 99,300 Funko shares, an average price of $17.22 each. According to a form he filed with the Securities and Exchange Commission, Denson purchased 60,000 shares through a personal account, and purchased 39,300 shares through trusts. Denson, who joined the board at Funko’s formation in April 2017, now owns 160,108 shares in his personal account.
Funko didn’t respond to a request to make Denson available for comment.
Denson is the CEO of advisory and consulting firm Anini Vista Advisors, and is a former Nike (NKE) executive. Denson last purchased Funko stock on the open market in November 2019, when he paid $500,000 for 36,000 shares, a per-share average price of $13.84.
Zakaria, the analyst, lowered her December 2022 price target on Funko stock to $23 from $25 in her November note. She saw “muted bottom-line flow-through” and “elevated cost and supply-chain pressures” that Funko and peers face.
With Funko stock at $17.42 at the time of Zakaria’s writing, that price “appropriately reflects optimism around a strong recovery in top line, while margins are being squeezed due to ongoing cost inflation,” she wrote.
Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Write to Ed Lin at [email protected] and follow @BarronsEdLin.
