Figure Technology Solutions (NASDAQ:FIGR) Stock Falls 6.9% - Here's Why

Key Points

• Figure Technology Solutions shares fell 6.9% to $29.69, with trading volume about 30% below the average session volume.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and a $52.88 price target, despite several firms recently lowering their targets.
• The company exceeded quarterly earnings expectations, reporting $0.35 in EPS versus the $0.24 consensus estimate and $218.45 million in revenue. Insiders have sold 67,650 shares worth approximately $2.16 million over the past three months.

Shares of Figure Technology Solutions, Inc. (NASDAQ:FIGR - Get Free Report) dropped 6.9% on Monday. The stock traded as low as $29.77 and last traded at $29.69. Approximately 3,242,365 shares were traded during trading, a decline of 30% from the average session volume of 4,608,175 shares. The stock had previously closed at $31.90.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on FIGR. Needham & Company LLC reissued a "buy" rating and issued a $55.00 price target on shares of Figure Technology Solutions in a research note on Thursday, August 20th. Wall Street Zen raised shares of Figure Technology Solutions from a "sell" rating to a "hold" rating in a report on Saturday, August 15th. Piper Sandler dropped their target price on shares of Figure Technology Solutions from $75.00 to $65.00 and set an "overweight" rating on the stock in a research report on Wednesday, July 15th. Zacks Research upgraded shares of Figure Technology Solutions from a "hold" rating to a "strong-buy" rating in a research report on Monday, August 17th. Finally, Keefe, Bruyette & Woods decreased their price target on shares of Figure Technology Solutions from $55.00 to $45.00 and set an "outperform" rating on the stock in a research note on Monday, July 13th. Two investment analysts have rated the stock with a Strong Buy rating, six have given a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $52.88.

Figure Technology Solutions Stock Performance

The company has a market cap of $5.45 billion and a price-to-earnings ratio of 31.54. The firm's 50 day simple moving average is $32.97 and its 200-day simple moving average is $33.12. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.86 and a current ratio of 1.86.

Figure Technology Solutions (NASDAQ:FIGR - Get Free Report) last issued its earnings results on Thursday, August 13th. The company reported $0.35 EPS for the quarter, beating analysts' consensus estimates of $0.24 by $0.11. The business had revenue of $218.45 million during the quarter. Figure Technology Solutions had a net margin of 33.45% and a return on equity of 18.90%. On average, sell-side analysts predict that Figure Technology Solutions, Inc. will post 1.2 EPS for the current year.

Insider Buying and Selling

In related news, insider David Stevens sold 47,650 shares of Figure Technology Solutions stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $31.38, for a total transaction of $1,495,257.00. Following the transaction, the insider owned 376,599 shares in the company, valued at approximately $11,817,676.62. This trade represents a 11.23% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Minchung Kgil sold 8,000 shares of the business's stock in a transaction on Monday, August 24th. The stock was sold at an average price of $38.69, for a total value of $309,520.00. Following the transaction, the chief financial officer directly owned 483,651 shares in the company, valued at $18,712,457.19. This trade represents a 1.63% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 67,650 shares of company stock worth $2,157,537 over the last three months. Corporate insiders own 26.60% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of FIGR. Fred Alger Management LLC purchased a new stake in shares of Figure Technology Solutions in the fourth quarter valued at about $67,386,000. Capital World Investors boosted its holdings in Figure Technology Solutions by 4.2% in the 4th quarter. Capital World Investors now owns 1,458,424 shares of the company's stock valued at $59,562,000 after purchasing an additional 58,424 shares during the last quarter. Norges Bank purchased a new stake in shares of Figure Technology Solutions in the 4th quarter valued at approximately $32,672,000. Granahan Investment Management LLC increased its holdings in shares of Figure Technology Solutions by 40.6% during the 1st quarter. Granahan Investment Management LLC now owns 935,400 shares of the company's stock worth $31,757,000 after buying an additional 269,882 shares during the last quarter. Finally, Maplelane Capital LLC purchased a new stake in shares of Figure Technology Solutions during the 1st quarter valued at approximately $23,120,000.

Figure Technology Solutions Company Profile

Figure Technology Solutions, Inc is a financial technology company that develops and operates digital platforms for lending and other financial services. Its technology is designed to streamline the origination, underwriting, servicing and funding of loans through automated processes and data-driven tools.

The company's offerings have included home equity financing, personal loans and related lending products, delivered directly to consumers and through institutional or other financial-services partners.

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