Funko stock (ticker: FNKO) has seen a significant decline in value recently, with a drop of over 40% this year and a staggering 70% over the past 12 months. On August 16, shares hit a low of $5.27, a level not seen since July 2020. The decline can be attributed to a decrease in demand for toys, which has resulted in Funko issuing disappointing outlooks.
In response to the challenging market conditions, Funko has taken measures such as laying off staff and currently operating without a permanent leader. In December 2022, former CEO Brian Mariotti was brought back to the company to identify operational improvements and drive profitable growth. However, after seven months, Mariotti stepped down as CEO, although he remains a director. He expressed his desire to contribute to Funko again in new and creative ways.
Despite the turbulent times, London-based Working Capital Partners has shown confidence in Funko by acquiring additional shares. From August 16 to August 23, they purchased a total of 625,373 Funko shares at an average price of $5.38 each, amounting to $3.5 million. As a result, Working Capital now owns approximately 12.5% of Funko shares, or 6.2 million shares in total.
Working Capital has become Funko’s second-largest investor, based on information from S&P Capital IQ. Earlier in May, they disclosed an initial investment of 2.4 million shares, representing a 5.1% stake in the company.
It is worth noting that Working Capital Partners declined to provide a comment regarding their recent share purchase.