Charles Denson, a director at
Funko Inc. (FNKO), recently bought 99,300 shares. The buy increased his stake by over 115 percent, and came to a total purchase price of just over $1.7 million.
This marks the first insider buy since August, when a fund with a major ownership stake added to their holdings. Otherwise, company insiders, including both directors and company insiders, have been large sellers of shares.
Overall, insiders own about 14 percent of company shares.
Insider sellers have been missing out, as shares have been trending higher in the past year with 55 percent returns, about 30 points higher than the S&P 500. The maker of licensed pop culture products is still well off of 52-week highs near $27 per share.
Revenue is up 40 percent over the past year, and earnings are up nearly 22 percent. And shares look like a relative value play at 16 times earnings.
Action to take: Shares have been rangebound for the past few months, but as long as the company’s earnings and revenue continue to rise, shares are trading well enough off their highs that they can likely move higher from here.
For traders, options are somewhat thinly-traded. But the May $17.50 calls are a near-the-money trade that could move higher in the next few months. The option last traded for about $2.50, and offer traders mid-to-high double-digit returns if shares trend higher.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.
