Figure Technology Solutions, Inc. (NASDAQ: FIGR) experienced a notable increase in its stock price, rising by 7.2% on Tuesday. This uptick followed an upgrade from The Goldman Sachs Group, which raised its price target for the stock from $51.00 to $58.00 and maintained a buy rating. The stock reached a high of $56.24 during trading, ultimately closing at $55.98.
In total, approximately 2,301,388 shares were traded, a significant decline of 49% compared to the average daily volume of 4,499,885 shares. Prior to this surge, the stock had closed at $52.23.
Multiple analysts have recently evaluated Figure Technology Solutions, reflecting increasing interest in the company. On November 17, Bank of America raised its target price from $41.00 to $47.00 while issuing a “neutral” rating. Additionally, Jefferies Financial Group initiated coverage on October 6, assigning a “hold” rating with a target price of $40.00.
Analysts at Keefe, Bruyette & Woods also weighed in, adjusting their price target from $52.00 to $62.00 and providing an “outperform” rating on January 8. Piper Sandler increased their price objective from $50.00 to $55.00 with an “overweight” rating. Lastly, Weiss Ratings reaffirmed a “hold (C-)” rating on December 29.
According to data from MarketBeat.com, the stock currently holds a consensus rating of “Moderate Buy” with a target price of $55.13.
Institutional Investment Activity
Recent trading activity indicates a growing interest from institutional investors in Figure Technology Solutions. Orland Properties Ltd made a significant move by acquiring a new position valued at approximately $319,187,000 during the third quarter. Other notable investors include Vanguard Group Inc., which purchased a stake worth about $91,751,000, and Duquesne Family Office LLC, which acquired shares valued at $76,989,000.
Additionally, Pantera Capital Partners LP and Capital World Investors purchased new positions valued at approximately $56,114,000 and $50,918,000, respectively, during the same period.
Company Overview and Financial Performance
Figure Technology Solutions has a market capitalization of $9.81 billion and a price-to-earnings (P/E) ratio of 163.82. The company has recently reported a strong financial performance, with earnings results published on November 13, 2023. For the quarter, Figure reported earnings per share (EPS) of $0.34, exceeding consensus estimates of $0.16 by $0.18. The company’s revenue for the quarter amounted to $156.03 million.
Figure Technology Solutions aims to redefine capital markets through blockchain-based technology. The company’s innovative solutions facilitate next-generation lending, trading, and investing across sectors such as consumer credit and digital assets. By utilizing a blockchain ledger, Figure enhances customer service, improves speed and efficiency, and increases standardization and liquidity in its operations.
As the company continues to develop integrated marketplaces, it targets the sizeable consumer credit market, estimated at around $2 trillion, and the rapidly expanding cryptocurrency and digital asset market, valued at approximately $4 trillion.
Investors and analysts alike will be keen to follow further developments as Figure Technology Solutions positions itself in the evolving landscape of capital markets.
