Heather Hasson, Executive Chair of FIGS, Inc. (NYSE:FIGS), a company specializing in medical apparel, recently sold shares in a transaction on June 4, 2024. The total value of the shares sold amounted to over $15,000, with the price per share being $5.1864.
The transaction involved the sale of 3,011 shares of Class A Common Stock, which was executed to cover required taxes and fees due upon the vesting and settlement of Restricted Stock Units (RSUs). Following this transaction, Hasson still retains a substantial interest in the company, with 465,859 shares of Class A Common Stock remaining under direct ownership, as well as additional interests through various trusts and vested options.
It's important to note that these sales were made in accordance with a pre-arranged 10b5-1 trading plan, which was established on May 9, 2023. Such plans allow company insiders to sell shares at predetermined times to avoid accusations of insider trading. The sales reported were solely to satisfy tax obligations related to the RSUs and not for any other market-driven purpose.
Aside from her direct holdings, Hasson also has indirect interests through the Heather Hasson Revocable Trust, which holds 8,338 shares, and Hollywood Capital Partners LLC, which holds 141 shares. Hasson is a managing member of Hollywood Capital Partners LLC but disclaims beneficial ownership of these securities except to the extent of her pecuniary interest.
Investors and followers of FIGS, Inc. often look to the trading activities of company insiders like Hasson for insights into the company's health and the confidence that its leaders have in its future prospects. While such transactions are common and often tax-related, they are still closely monitored by the investment community.
In other recent news, healthcare apparel brand FIGS reported a marginal decrease of 2.8% in its Q1 2024 net revenues, amounting to $210 million. However, the company surpassed expectations with an adjusted EBITDA margin of 10.9%. Despite the slight dip in revenues, FIGS demonstrated resilience by raising its full-year net revenue outlook to a range of -2% to +2% compared to 2023.
The company's international net revenues grew substantially by 29%. FIGS is also expanding its retail footprint with a new store slated to open in Philadelphia and is investing in improving its fulfillment capabilities to support larger scale and global distribution.
These recent developments show the company's commitment to product innovation, market expansion, and profitability. A significant part of the company's business, over 20%, is now from non-scrub products, indicating successful diversification efforts. The company's future expectations, as reported by analysts, include an adjusted EBITDA margin for 2024 projected to be between 9.5% and 10.5%.
InvestingPro Insights
Amidst the backdrop of Heather Hasson's recent stock transactions, FIGS, Inc. continues to demonstrate robust financial health, as evidenced by its impressive gross profit margins, which stood at 68.56% for the last twelve months as of Q1 2024. This figure showcases the company's ability to maintain profitability in its specialized sector of medical apparel. Additionally, FIGS has been prudent with its balance sheet management, holding more cash than debt, which provides a cushion for operational flexibility and potential investments.
Investors considering the company's stock will find that FIGS is trading at a relatively low Price-to-Earnings (P/E) ratio of 42.48 relative to its near-term earnings growth. This metric, along with a PEG ratio of 0.56 for the same period, suggests that the stock may be undervalued given its growth potential. However, it's also trading at a high earnings multiple, which could indicate expectations of strong future earnings.
For those interested in further insights, there are additional InvestingPro Tips available, providing a more in-depth analysis of FIGS, Inc. These tips can be accessed through InvestingPro's platform, which currently lists 10 more tips that could be crucial for investors. To enhance your investment strategy and gain access to these valuable insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
While the executive chair's sale of shares was for tax-related purposes, the company's solid financial metrics and positive analyst predictions for profitability this year may instill confidence among investors. With the company's next earnings date slated for August 1, 2024, stakeholders will be keen to see if FIGS can maintain its trajectory and continue to capitalize on its market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.