Here’s Why Funko Inc. (FNKO) can Beat the Pack

A group of investors led by investment firm The Chernin Group has agreed to buy a 25% interest in collectible figure producer Funko Inc. (NASDAQ: FNKO). The announcement fueled an almost 30% increase in the company’s stock price at the May 6th auction. FNKO shares corrected to $19.65 on May 9.

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A group of investors is paying $263 million for Funko shares, or $21 a share, from ACON Investments. eBay, former Disney CEO Bob Iger, and famed sports agent Rich Paul are among the members of the consortium.

eBay will become the primary site for reselling Funko figures as part of the agreement. The two firms also want to collaborate on the development of special new items. It’s worth noting that FNKO is constantly attentive to market needs and works hard to create figures of the most popular characters. Funko makes collectible figures of a wide range of characters, from movie heroes to real-life celebrities.

Typically, such toys are given as gifts to collectors or enthusiasts of movies, comic books, and music. The selling of collectible Pop! depicting popular characters from comic books, video games, TV shows, and movies today accounts for the majority of Funko’s earnings. Often, a firm will introduce a new collection around the time of movie or series debuts. This results in great sales and the broadest potential client base for FNKO.

Funko Inc. (FNKO) released its first-quarter earnings last Friday. Net sales surged 63 percent year over year to $308.3 million, while net income grew 31% to $14.5 million. Full-year net sales are expected to grow nearly 30% to $1.3 billion, with adjusted net income ranging between $98.6 million and $103.8 million.

The stock has a year-to-date return of 4.52%. Its seven-day performance, though, is 18.44%. The stock’s price index has improved by 10.39% in the last month, and it has grown by 13.72% in the last three months. Its six-month performance was 3.53%, while its 52-week performance was -15.37%.