Figure Technology Solutions Inc. (NASDAQ:FIGR) saw its share price increase by as much as 13.9 percent to $35.81 apiece, as investors resumed buying positions, supported by three positive analyst ratings and stellar earnings performance in the second quarter of the year.
Q3 Profits Nearly Triple
During the period, the financial technology firm grew its net income by 191 percent to $87.4 million from $29.99 million in the same period last year, while net revenues surged by 113 percent to $225 million from $106 million year-on-year.
Consumer Loan Marketplace (CLM) volume climbed by 132 percent to $4.26 billion from $1.838 billion.
The New York Stock Exchange building. Photo by Дмитрий Трепольский on Pexels
“We delivered our strongest quarter yet, headlined by 132 percent year-over-year volume growth in our [CLM], the addition of over 100 origination partners, and the scaling of our capital-light marketplace, with 65 percent of our volumes now on Figure Connect,” CEO Michael Tannenbaum said.
“With weekly applications now surpassing $1 billion as of July and the pending completion of our Kiavi acquisition, which we expect will significantly grow our platform into adjacent asset classes, we are accelerating our growth flywheel and our first-mover advantage in bringing the capital markets on-chain,” he noted.
For the third quarter of the year, the company is targeting CMV volume of $4.8 billion to $5.2 billion, or an implied growth of 92 percent to 108 percent from the $2.5 billion posted in the same quarter a year earlier.
3 Analysts Say ‘Buy’
Following the results, three analysts reiterated their buy recommendations for shares of Figure Technology Solutions Inc. (NASDAQ:FIGR).
Piper Sandler assigned the highest price target of $65, followed by Needham with $55, and KBW at $45. The said price assessments mark upside potential of 82.69 percent, 54.58 percent, and 26.48 percent, respectively, from the fintech’s closing price as of writing.
Hedge Funds Buy In
Apart from analysts, Figure Technology Solutions Inc. (NASDAQ:FIGR) also earned a solid backing from institutional investors, with the number of participants soaring alongside their committed capital.
Data from Insider Monkey showed that in the first quarter of the year, 51 hedge funds held positions in the company, up from 40 in the quarter previously.
More importantly, their combined holdings increased by 19.3 percent to $673 million from $564 million quarter-on-quarter, signaling their confidence in the fintech’s long-term growth prospects.
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