What Happened?
Shares of healthcare apparel company Figs (NYSE:FIGS) fell 3.7% in the afternoon session after investors appeared to take profits following a recent run-up in the company's shares.
The decline followed the healthcare apparel company's stock reaching a new 52-week high of $12.28. This peak was supported by recent positive news, including third-quarter 2025 earnings that surpassed market expectations. The company reported earnings per share of $0.05 on revenue of $151.7 million, beating forecasts. However, some technical indicators suggested the stock had become overbought, which can often lead to a pullback as traders sell to lock in recent gains.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Figs? Access our full analysis report here.
What Is The Market Telling Us
Figs’s shares are extremely volatile and have had 30 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was about 2 months ago when the stock gained 13.2% on the news that the company reported strong third-quarter financial results that significantly beat Wall Street's expectations.
The healthcare apparel company's revenue grew 8.2% year-over-year to $151.7 million, exceeding analyst forecasts. This growth was complemented by a significant earnings beat, with adjusted earnings per share of $0.05, more than double the consensus estimate of $0.02. A key driver for the strong results was improved profitability; Figs' operating margin swung from a loss of 6.2% in the same quarter last year to a profit of 6.4%. Investors reacted positively to the strong top- and bottom-line performance and signs of increased operational efficiency.
Figs is up 101% since the beginning of the year, and at $11.82 per share, it is trading close to its 52-week high of $12.20 from December 2025. Investors who bought $1,000 worth of Figs’s shares at the IPO in May 2021 would now be looking at an investment worth $393.57.
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