In a recent financial disclosure, Heather L. Hasson, the Executive Chair of FIGS, Inc. (NYSE:FIGS), a company specializing in medical apparel, reported selling shares of the company's stock. The transaction, which took place on September 5, 2024, involved the sale of 2,983 shares at a price of $6.19 per share, amounting to a total of approximately $18,464.
This sale was conducted to cover the required taxes and fees associated with the vesting and settlement of Restricted Stock Units (RSUs). According to the footnotes in the disclosure, these shares were sold pursuant to a 10b5-1 instruction letter, which was set up in advance to allow the automated sale of shares to meet tax obligations. The filing emphasized that the shares were not sold for any reason other than to cover these required expenses.
The filing also noted that following the transaction, Hasson retained a substantial interest in the company. While the direct ownership following the sale was listed as 422,727 shares of Class A Common Stock, Hasson also beneficially owns additional shares through various trusts, including 2,814,480 shares of Class B Common Stock, which can be converted into Class A shares, and 14,508,981 shares of Class A Common Stock underlying vested options.
Investors often monitor the buying and selling activities of company insiders like Hasson for insights into their perspective on the company's current valuation and future prospects. The disclosed sale represents a routine financial transaction to satisfy tax obligations related to equity compensation and is a common practice among corporate executives.
In other recent news, Figs Inc (NYSE:FIGS). delivered an adjusted EBITDA that surpassed expectations, leading Telsey Advisory Group to raise its price target on the company's shares. This performance was attributed to sales slightly above forecasts and favorable operating expense leverage. Figs Inc. has revised its sales outlook upwards, surpassing the midpoint of prior consensus estimates, reflecting confidence in the ongoing business momentum. However, the company also anticipates persistent gross margin pressures.
In other developments, Figs Inc. appointed Sarah Oughtred, a former lululemon (NASDAQ:LULU) executive, as its new Chief Financial Officer. Oughtred's appointment is part of the company's expansion strategy in the healthcare apparel market. The company also reported a slight decrease in net revenues, but surpassed expectations with an adjusted EBITDA margin of 10.9%.
In the company's annual meeting, shareholders re-elected three Class III directors and endorsed the executive pay structure. The company also reported a robust increase in international net revenues by 29%, aligning with its strategy of product innovation and market expansion. These are among the recent developments at Figs Inc.
InvestingPro Insights
As investors digest the recent financial disclosure from Heather L. Hasson, Executive Chair of FIGS, Inc. (NYSE:FIGS), it's worth noting the company's financial health and market performance. FIGS, known for its medical apparel, has demonstrated robust financials with a gross profit margin of 68.02% in the last twelve months as of Q2 2024, underscoring its ability to maintain profitability in its core operations.
Despite the routine nature of Hasson's stock sale, FIGS has experienced notable market activity, with its stock price taking a significant hit over the last week, declining by 12.8%. This could suggest a market reaction to insider transactions or other external factors influencing investor sentiment. The company's current market capitalization stands at $913.25 million, with a P/E ratio of 49.95, indicating that investors are willing to pay a premium for its earnings, which is further supported by an InvestingPro Tip highlighting the company's high earnings multiple.
InvestingPro Tips also reveal that FIGS holds more cash than debt on its balance sheet, providing the company with financial flexibility and potentially reducing risk for investors. Moreover, FIGS is expected to remain profitable this year, with analysts predicting positive outcomes despite a forecasted drop in net income.
For those interested in a deeper dive into FIGS' financials and market performance, InvestingPro offers additional tips and insights. Currently, there are 11 more InvestingPro Tips available for FIGS at https://www.investing.com/pro/FIGS, providing valuable perspectives for investors considering this stock.
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