FIGS Should I Buy
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Figs Inc (FIGS) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company has demonstrated strong financial growth, positive analyst sentiment, and promising long-term growth drivers such as international expansion and product innovation. Despite insider selling and overbought technical indicators, the stock's recent earnings beat and upward revisions in price targets suggest a favorable long-term outlook.
The stock is currently in a bullish trend with moving averages (SMA_5 > SMA_20 > SMA_200) confirming upward momentum. The MACD histogram is positive at 0.739, indicating bullish momentum, but it is contracting. RSI_6 at 92.424 signals an overbought condition, suggesting potential short-term pullback. Key resistance levels are R1: 16.666 and R2: 18.343, with support at S1: 11.238 and S2: 9.561.
Strong Q4 financial performance with 33% YoY revenue growth and 900% YoY EPS growth.
Analysts have raised price targets significantly, with BTIG setting a target of $20 and multiple upgrades from Goldman Sachs, KeyBanc, and Barclays.
Positive momentum in international expansion and product innovation.
Market sentiment is supported by a low Open Interest Put-Call Ratio (0.
and Option Volume Put-Call Ratio (0.35), indicating bullish sentiment.
Insiders are selling, with a significant 1848.51% increase in selling activity over the last month.
RSI indicates the stock is overbought, suggesting potential short-term pullback.
Gross margin has decreased by 6.49% YoY, which may raise concerns about profitability trends.
In Q4 2025, Figs reported a 33% YoY revenue increase to $201.9M, a net income surge of 881.8% YoY to $18.5M, and EPS growth of 900% YoY to $0.10. However, gross margin dropped by 6.49% YoY to 62.94%. The financial performance highlights strong demand and profitability improvements, despite some margin compression.
Analysts are overwhelmingly positive on FIGS. BTIG raised its price target to $20, citing strong momentum and growth potential. Goldman Sachs upgraded the stock to Neutral from Sell, with a price target of $14, acknowledging stronger-than-expected business improvements. KeyBanc, Barclays, and Roth Capital also upgraded the stock, emphasizing international expansion, product innovation, and profitable growth.
