FNKO - Funko Rallies On Q1 2024 Results: Sell The News (Technical Analysis)
2024-07-01 16:34:30 ET
Summary
- Funko stock rallied on Q1-2024 results in May and is still experiencing increased momentum.
- The company is showing slow financial recovery with its right-sizing strategy; it recently appointed a new CEO.
- The company's stock usually experiences a seasonal rally between late April and the end of July. The company's stock is on a two-year downtrend.
- The company's products remain popular and Funko engages with its fan-base.
- I continue my rating of a Sell. Investors will want to see more improved financial performance and some stock price uptrend.
Funko ( FNKO ) reported improved Q1-2024 financial results back in May. The company is seeing the fruits of its right-sizing strategy. Inventory is low, margins are high, and debt is being paid down. I covered Funko last November on Seeking Alpha and changed my rating of Hold to Sell. By April 2024, the stock price had dropped to its second 52 week low of the year. The stock has gained 43% since I covered it, and it recovered from the low. I looked deeper into whether these gains set a new uptrend. I’ve decided that it is a seasonal cycle and not a new uptrend. I continue my rating of Sell. Although the company is showing improvement, it is not clear if there will be long-term growth in its stock price or better future financial performance....
Funko Rallies On Q1 2024 Results: Sell The News (Technical Analysis)