FIGS (NYSE:FIGS) Shares Gap Down - Time to Sell?

Key Points

• FIGS stock gapped down ~27% — shares opened at $12.15 after closing $15.37 and were trading near $11.27 on heavy volume following the report.
• Q1 results beat and guidance was raised — GAAP EPS $0.03 vs $0.01 est., revenue $159.9M (+28% YoY), and FY‑2026 revenue guidance raised to roughly $719.5M–$732.1M, above Street consensus.
• Insider selling and concerns about margins/forward clarity likely fueled the sell‑off — several Rule 10b5‑1 insider sales were reported, the stock trades at a high P/E (~58.7), and analysts’ average target sits near $15.93.

FIGS, Inc. (NYSE:FIGS - Get Free Report) gapped down prior to trading on Friday . The stock had previously closed at $15.37, but opened at $12.15. FIGS shares last traded at $11.2740, with a volume of 2,251,423 shares traded.

Key FIGS News

Here are the key news stories impacting FIGS this week:

• Positive Sentiment: Q1 results beat expectations — GAAP EPS $0.03 vs. $0.01 est., revenue $159.9M vs. $153.2M est.; revenue +28% YoY and net margin ~5.4%. FIGS Releases First Quarter 2026 Financial Results
• Positive Sentiment: Company raised FY‑2026 revenue guidance to roughly $719.5M–$732.1M, above Street consensus (~$706M), signaling continued top‑line strength. Q1 Financial Highlights Presentation
• Neutral Sentiment: Management commentary and details are available in the Q1 earnings call transcript — useful for assessing guidance cadence, margin commentary and inventory/marketing plans. FIGS Q1 2026 Earnings Call Transcript
• Neutral Sentiment: Corporate PR: FIGS announced a long‑term partnership with actor/advocate Noah Wyle to support healthcare workforce issues — brand/CSR positive but unlikely to move near‑term fundamentals. FIGS and Noah Wyle Partnership
• Negative Sentiment: Insider selling: Chairman Heather Hasson sold 32,385 shares and CFO Sarah Oughtred sold 23,597 shares (both reported as Rule 10b5‑1 plan trades). Even if pre‑planned, these sales can raise short‑term selling pressure or investor concern about insider timing. Heather Hasson Sells 32,385 Shares of FIGS Stock
• Negative Sentiment: Despite the beats and raised revenue guide, the stock dropped sharply on the report — headlines note a notable sell‑off, suggesting investors may have judged margins, forward EPS clarity, or valuation less favorably. Figs delivers impressive Q1 but stock drops

Analyst Ratings Changes

FIGS has been the topic of several recent analyst reports. Wall Street Zen raised FIGS from a "buy" rating to a "strong-buy" rating in a research report on Saturday, February 28th. BTIG Research reaffirmed a "buy" rating and issued a $20.00 price target on shares of FIGS in a research report on Friday, April 24th. The Goldman Sachs Group raised FIGS from a "strong sell" rating to a "hold" rating in a research report on Friday, February 27th. Morgan Stanley lifted their price target on FIGS from $8.00 to $15.00 and gave the stock an "equal weight" rating in a research report on Monday, April 13th. Finally, Barclays raised FIGS from a "hold" rating to a "strong-buy" rating in a research report on Friday, February 27th. Two research analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, FIGS presently has a consensus rating of "Moderate Buy" and an average target price of $15.93.

FIGS Trading Down 27.3%

The company has a market cap of $1.86 billion, a price-to-earnings ratio of 58.74 and a beta of 1.12. The company has a fifty day moving average price of $15.08 and a two-hundred day moving average price of $12.10.

FIGS (NYSE:FIGS - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported $0.03 earnings per share for the quarter, topping the consensus estimate of $0.01 by $0.02. FIGS had a return on equity of 8.41% and a net margin of 5.43%.The company had revenue of $159.90 million for the quarter, compared to analyst estimates of $153.15 million. The company's revenue was up 28.0% compared to the same quarter last year. Sell-side analysts anticipate that FIGS, Inc. will post 0.24 EPS for the current fiscal year.

Insider Transactions at FIGS

In other news, Chairman Heather L. Hasson sold 32,385 shares of FIGS stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $14.33, for a total transaction of $464,077.05. Following the sale, the chairman owned 1,433,807 shares of the company's stock, valued at approximately $20,546,454.31. This trade represents a 2.21% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Catherine Eva Spear sold 62,335 shares of FIGS stock in a transaction that occurred on Thursday, April 2nd. The stock was sold at an average price of $14.44, for a total value of $900,117.40. Following the sale, the chief executive officer directly owned 1,794,964 shares in the company, valued at $25,919,280.16. The trade was a 3.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 685,516 shares of company stock valued at $11,233,441. 29.44% of the stock is owned by corporate insiders.

Institutional Trading of FIGS

Institutional investors have recently bought and sold shares of the stock. Y Intercept Hong Kong Ltd boosted its stake in FIGS by 943.4% in the 3rd quarter. Y Intercept Hong Kong Ltd now owns 261,232 shares of the company's stock valued at $1,748,000 after buying an additional 236,195 shares in the last quarter. Vanguard Group Inc. boosted its stake in FIGS by 4.6% in the 3rd quarter. Vanguard Group Inc. now owns 9,609,320 shares of the company's stock valued at $64,286,000 after buying an additional 425,189 shares in the last quarter. Western Standard LLC acquired a new stake in FIGS in the 3rd quarter valued at $1,863,000. Jennison Associates LLC acquired a new stake in FIGS in the 4th quarter valued at $5,717,000. Finally, ProShare Advisors LLC boosted its stake in FIGS by 24.7% in the 3rd quarter. ProShare Advisors LLC now owns 963,560 shares of the company's stock valued at $6,446,000 after buying an additional 190,592 shares in the last quarter. Institutional investors and hedge funds own 92.21% of the company's stock.

About FIGS

FIGS, Inc operates as a direct-to-consumer designer and retailer of medical apparel and accessories. The company offers a range of products tailored to the needs of healthcare professionals, including scrub sets, lab coats, tops, bottoms, outerwear, footwear, and performance fabrics designed for comfort, durability, and antimicrobial protection. Through its e-commerce platform and a growing network of retail stores, FIGS provides customizable uniforms and accessories with a focus on innovative materials and functional design features such as four-way stretch fabrics, moisture-wicking technology, and multiple secure pockets.

Founded in 2013 by Heather Hasson and Trina Spear, FIGS set out to disrupt the traditional medical uniform market by emphasizing both form and function.

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