Stock Traders Buy Large Volume of Call Options on FIGS (NYSE:FIGS)

Key Points

• FIGS call-option activity doubled: Investors purchased 2,026 call options, versus an average daily volume of 1,014, signaling increased speculative or bullish interest.
• Shares showed strong momentum: FIGS traded at $17.85, near its 52-week high of $19.18, with the stock above its 50-day and 200-day moving averages.
• Analyst sentiment remains moderately bullish: Seven analysts rate FIGS a Buy and four a Hold, producing a “Moderate Buy” consensus and an average price target of $18.71; the company also recently exceeded earnings and revenue expectations.

FIGS, Inc. (NYSE:FIGS - Get Free Report) was the recipient of unusually large options trading activity on Tuesday. Stock investors bought 2,026 call options on the company. This is an increase of approximately 100% compared to the typical daily volume of 1,014 call options.

FIGS Stock Performance

FIGS traded up $0.11 during trading on Tuesday, reaching $17.85. 3,978,421 shares of the stock were exchanged, compared to its average volume of 3,281,736. The stock has a market cap of $2.97 billion, a P/E ratio of 54.09 and a beta of 1.06. FIGS has a twelve month low of $6.96 and a twelve month high of $19.18. The stock's 50 day moving average price is $14.00 and its two-hundred day moving average price is $12.98.

FIGS (NYSE:FIGS - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported $0.15 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.07 by $0.08. FIGS had a net margin of 8.72% and a return on equity of 12.53%. The firm had revenue of $196.62 million for the quarter, compared to analyst estimates of $186.17 million. During the same period in the prior year, the firm posted $0.04 earnings per share. The company's quarterly revenue was up 28.8% compared to the same quarter last year. Equities research analysts predict that FIGS will post 0.32 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the company. Telsey Advisory Group lowered their target price on FIGS from $17.00 to $16.00 and set a "market perform" rating for the company in a research note on Friday, August 7th. BTIG Research lifted their price target on shares of FIGS from $20.00 to $22.00 and gave the stock a "buy" rating in a research report on Friday, August 7th. The Goldman Sachs Group reiterated a "neutral" rating and issued a $16.00 price objective on shares of FIGS in a research report on Friday, August 7th. Weiss Ratings upgraded FIGS from a "hold (c+)" rating to a "buy (b-)" rating in a report on Monday. Finally, Barclays lifted their price objective on shares of FIGS from $17.00 to $20.00 and gave the company an "overweight" rating in a report on Friday, August 7th. Seven analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat.com, FIGS presently has an average rating of "Moderate Buy" and a consensus price target of $18.71.

Key FIGS News

Here are the key news stories impacting FIGS this week:

• Positive Sentiment: Technical breakout: FIGS broke above a key buy point and was identified as the top-performing stock in the apparel industry group, suggesting strong institutional and momentum-driven demand. Out Of Nowhere, This Small-Cap Company Becomes No. 1 Apparel Stock
• Positive Sentiment: Near a 52-week high: Coverage noted FIGS reaching a new 52-week high, reinforcing the bullish technical picture and prompting discussion about whether the stock remains attractive to investors. FIGS Hits New 52-Week High - Time to Buy?
• Positive Sentiment: Heavy call-option activity: Investors purchased 2,026 FIGS call options, twice the stock’s average daily call volume of 1,014. The surge points to increased speculative or bullish interest, although options activity alone does not guarantee future gains.
• Positive Sentiment: Momentum appeal: Zacks characterized FIGS as a strong momentum stock, which may attract trend-following investors while the shares continue to outperform. Here's Why Figs is a Strong Momentum Stock

Institutional Investors Weigh In On FIGS

Hedge funds have recently bought and sold shares of the company. Tidal Investments LLC increased its position in FIGS by 69.6% during the second quarter. Tidal Investments LLC now owns 27,467 shares of the company's stock worth $281,000 after buying an additional 11,270 shares during the last quarter. Integrated Wealth Concepts LLC acquired a new stake in shares of FIGS in the second quarter valued at approximately $41,000. IFP Advisors Inc lifted its position in shares of FIGS by 120.2% in the second quarter. IFP Advisors Inc now owns 4,389 shares of the company's stock valued at $45,000 after buying an additional 2,396 shares during the last quarter. Navellier & Associates Inc. boosted its stake in shares of FIGS by 118.8% during the 2nd quarter. Navellier & Associates Inc. now owns 44,128 shares of the company's stock worth $451,000 after acquiring an additional 23,957 shares during the period. Finally, Wellington Management Group LLP bought a new position in shares of FIGS during the 2nd quarter worth approximately $12,304,000. 92.21% of the stock is currently owned by institutional investors and hedge funds.

FIGS Company Profile

FIGS, Inc NYSE: FIGS is a healthcare apparel and lifestyle company that designs and sells clothing, footwear, accessories and other products for healthcare professionals. Its product portfolio includes medical scrubs, lab coats, jackets, underscrubs, shoes, bags and related essentials designed for use in clinical and professional settings.

Founded in 2013 by Heather Hasson and Trina Spear, FIGS built its business around modern, performance-oriented alternatives to traditional medical uniforms.

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