Stock Analysis

Insiders in Funko, Inc. (NASDAQ:FNKO) are down 40% on their US$1.7m purchase despite recent gains

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NasdaqGS:FNKO
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Insiders who purchased US$1.7m worth of Funko, Inc. (NASDAQ:FNKO) shares over the past year recouped some of their losses after price gained 13% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$678k.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Funko

The Last 12 Months Of Insider Transactions At Funko

Over the last year, we can see that the biggest insider purchase was by Independent Chairman of the Board Charles Denson for US$1.7m worth of shares, at about US$17.35 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$10.39). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Charles Denson.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NasdaqGS:FNKO Insider Trading Volume December 6th 2022

Funko is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Funko Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Funko insiders own about US$5.6m worth of shares (which is 1.1% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Funko Insider Transactions Indicate?

The fact that there have been no Funko insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Funko insiders are doubting the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Funko.

But note: Funko may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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