Heather L. Hasson, the Executive Chair of FIGS, Inc. (NYSE:FIGS), recently sold 38,575 shares of the company's Class A Common Stock. The shares were sold at an average price of $6.3246 each, totaling approximately $243,971.
These transactions were conducted to cover tax obligations related to the vesting and settlement of restricted stock units (RSUs), as outlined in a pre-arranged 10b5-1 trading plan. Following the sale, Hasson retains direct ownership of 384,152 shares of Class A Common Stock. Additionally, she holds indirect ownership stakes through the Heather Hasson Revocable Trust and Hollywood Capital Partners (WA:CPAP) LLC.
Hasson also maintains significant holdings in the company, including 2,814,480 shares of Class B Common Stock, which are convertible into Class A shares, and 14,736,782 shares of Class A Common Stock underlying vested options.
In other recent news, Figs Inc (NYSE:FIGS). has seen its shares target increased by Telsey Advisory Group following an adjusted EBITDA that exceeded expectations. The company's earnings performance was attributed to sales slightly surpassing forecasts and favorable operating expense leverage, which offset a weaker gross margin. Figs Inc. has also adjusted its sales outlook upwards for the third quarter and beyond, based on its strong performance in the first half of the year and increased repeat customer frequency.
However, the company has reduced the high end of its previous adjusted EBITDA margin guidance due to anticipated continued gross margin pressures. Despite this, Figs Inc. expects improved marketing strategies and cost management to partially mitigate these pressures. Telsey Advisory Group has recognized Figs Inc.'s strong direct-to-consumer position in the healthcare apparel space and its potential for expansion.
These developments reflect recent changes in Figs Inc.'s business strategy and market performance. While maintaining a cautious stance due to the company's ongoing recovery from previous execution issues, Telsey Advisory Group has raised its price target for Figs Inc. to $7.00.
InvestingPro Insights
To provide additional context to Heather L. Hasson's recent stock sale, let's examine some key financial metrics and insights from InvestingPro for FIGS, Inc.
FIGS currently boasts a market capitalization of $1.13 billion, with a price-to-earnings (P/E) ratio of 42.77. This relatively high P/E ratio suggests that investors have high expectations for the company's future growth. In fact, one of the InvestingPro Tips notes that FIGS is "Trading at a high earnings multiple," which aligns with the observed P/E ratio.
The company's financial health appears solid, with InvestingPro data showing that FIGS "Holds more cash than debt on its balance sheet." This strong liquidity position is further supported by another InvestingPro Tip indicating that "Liquid assets exceed short term obligations." These factors may provide some reassurance to investors regarding the company's financial stability, despite the insider sale.
FIGS has demonstrated impressive profitability, with a gross profit margin of 67.67% for the last twelve months as of Q3 2024. This aligns with an InvestingPro Tip highlighting the company's "Impressive gross profit margins." Such robust margins could indicate strong pricing power and efficient cost management, which are positive indicators for the company's long-term prospects.
It's worth noting that FIGS has shown a strong return over the last three months, with a price total return of 16.61%. This recent performance, coupled with the company's financial metrics, may provide some context for investors evaluating the significance of the insider sale.
For those seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for FIGS, providing a deeper understanding of the company's financial position and market performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.