On September 25, 2023, financial news revealed that Nordea Investment Management AB had reduced its stake in shares of FIGS, Inc. (NYSE:FIGS) by 28.1% during the second quarter of the year. According to the company’s most recent 13F filing with the Securities and Exchange Commission (SEC), the institutional investor now owns 306,935 shares of FIGS stock after selling 119,761 shares. This reduction in stake resulted in Nordea Investment Management AB owning approximately 0.18% of FIGS, which amounts to a value of $2,505,000 at the end of the said quarter.
FIGS is traded on the New York Stock Exchange under the ticker symbol FIGS and opened at a price of $5.59 on Friday. The firm currently has a market capitalization of $940.90 million and operates with a price-to-earnings ratio of 79.80. The P/E/G ratio stands at 3.85 and reflects the relationship between the stock’s price-to-earnings ratio and its expected growth rate over time.
In terms of market performance, FIGS has exhibited a beta value of 1.43, indicating that its share prices are relatively more volatile compared to the overall market’s movements. At present, the company’s fifty-day moving average is recorded at $6.53 while its two-hundred day moving average stands at $7.04.
It is worth noting that over a one-year period, FIGS has experienced a low point of $5.31 per share and reached as high as $10.20 per share. These figures demonstrate some volatility in FIGS’ stock price within a span of twelve months.
As an institutional investor reduces its stake in FIGS, it could indicate various factors influencing their decision-making process. While it is difficult to ascertain specific reasons without additional information provided by Nordea Investment Management AB, market conditions, financial performance, or the investor’s own investment strategies could be contributing factors.
As always, investors and stakeholders are advised to conduct thorough research and analysis before making any investment decisions. Keeping track of such developments within the financial markets ensures an informed understanding of the companies and their positions in the market.
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FIGS, Inc.: Institutional Investors Show Confidence in Textile Company’s Growth
FIGS, Inc., a prominent company in the textile industry, has recently attracted the attention of hedge funds and other institutional investors. One of these investors, Atria Wealth Solutions Inc., acquired a new stake in FIGS during the first quarter of this year, with an estimated value of around $270,000. Similarly, Ameriprise Financial Inc. increased its stake in the company by 62.2% during the same period, now owning approximately 549,854 shares valued at $3,404,000.
Another major investor, JPMorgan Chase & Co., significantly raised its stake in FIGS by 171.1% during the first quarter as well. The bank now owns 354,503 shares worth $2,194,000 after acquiring an additional 223,740 shares. Front Street Capital Management Inc. also entered the market and bought a new position in FIGS for approximately $66,000 during the same period.
Most notably among these investments is Prentice Capital Management LP’s stake in FIGS which stands at an impressive $2,033,000. These investments by institutional investors demonstrate a high degree of confidence in FIGS’ potential growth and stability within the industry.
However, it is equally important to note that despite these positive outcomes for FIGS from institutional investments; there have been significant sales by company insiders as well. Heather L. Hasson sold a total of 27,965 shares on June 26th at an average price of $8.05 per share resulting in a transaction value of $225,118.25. Ms.Hasson is currently reported to own 1,3311432 shares which are valued at $10 million dollars.
Additionally,CFO Daniella Turenshine also sold a considerable number of shares amounting to 4 ,201 on July 6th at an average price per unit/share was cited as being around seven dollars forty eight cents. According to reports, the company’s Chief Financial Officer now holds 436,000 shares valued at an equivalent of approximately $3,261,280. Despite these sales however, corporate insiders continue to own a significant 21.40% of the company’s stock, demonstrating a continued vested interest in FIGS’ success and future growth.
Looking beyond investment activities and insider sales, it is interesting to examine FIGS’ financial performance. The company recently released its earnings results for the second quarter of the fiscal year on August 3rd with reported earnings per share of $0.02. Although this may appear modest at first glance, FIGS managed to maintain a net margin of 2.62% and a return on equity of 6.17%.
Revenue for the quarter came in at $138.13 million , surpassing analyst estimates which projected revenue of $133.07 million.The figures represent a 13% increase compared to the same period last year which indicates positive growth for FIGS Insiders within sell-side firms anticipate that FIGS will post earnings per share of approximately $0.08 for this fiscal year.
It is important to note that despite positive performance indicators and institutional investments mentioned earlier, some brokerage firms have expressed their reservations about FIGS’ current position in the market.Raymond James downgraded its rating from “outperform” to “market perform” while Telsey Advisory Group maintained its ‘outperform’ rating and issued a target price of $11. Known as one firm that has never shied away from offering criticism is Barclays Bank PLC.With an ‘underweight’ rating they noted concerns on FIGs final price,rising from $5USD TO reach levels upwards up about seventy percent.Due diverse ratings by analysts Bloomberg data tells us that Fig having achieved what would typically be considered “half way between” consensus results we currently give them hold rating with an approximate expected target price of $9.02.
FIGS´future remains uncertain as it continues to navigate the volatile and ever-changing market conditions. However, despite these challenges, the company’s established presence along with its reputation for quality craftsmanship is likely to contribute heavily to its long-term success. With a diverse range of institutional investors showing confidence in FIGS’ growth potential and positive financial performance, it is clear that this company continues to attract considerable attention within the industry. Investors and analysts will be closely monitoring FIGS over the coming months as they strive for continued growth and prosperity.
