TLDR
- Figure’s stock jumped 24% on November 14, closing at $42.74, following positive developments
- Bernstein analysts predict a 56% stock price increase to $54 by end of 2026
- The company reported Q3 net revenue of $156 million, up 42% year-over-year
- Figure has filed with the SEC to launch a tokenized stock offering on its own blockchain platform
- The stock has experienced volatility, dropping 22% over the past month before the recent surge
Figure Technology Solutions Inc. experienced a sharp price increase on Friday, climbing over 24% to close at $42.74. The move came after the blockchain lending company filed for regulatory approval to sell tokenized versions of its stock.
Figure Technology Solutions, Inc. Class A Common Stock, FIGR
The $7.4 billion company has been making waves in the financial technology sector. Bernstein analysts issued a bullish forecast predicting the stock will reach $54 by the end of 2026. That represents a 56% increase from current levels.
Strong Third Quarter Performance
Figure’s third quarter results showed solid growth. Net revenue climbed 42% to $156 million compared to the same period last year. Total revenue for the company reached approximately $341 million.
Co-founder and executive chairman Mike Cagney described the company’s performance as “killing it” when discussing the quarterly financials. Revenue per share improved to $1.96.
The company now holds assets valued at over $1.27 billion. Working capital stands at $226 million, while long-term debt sits around $174 million.
Figure completed an initial public offering in September that raised approximately $800 million. The company went public in the US at that time.
Tokenized Stock Offering
On Thursday, Figure announced it had applied to the Securities and Exchange Commission for approval of a unique secondary offering. The company wants to sell tokenized versions of its Class A Common Stock.
These tokens won’t trade on traditional exchanges. Instead, they’ll be available through Figure’s own trading platform.
Cagney stated the second offering will be non-dilutive to existing shareholders since it’s entirely a secondary sale. Investors who purchase the tokenized shares will receive their tokens on Provenance, a $1.5 billion blockchain.
Bernstein analysts called Figure the “leading tokenisation platform for credit.” The company is positioning itself at the intersection of traditional finance and blockchain technology.
The stock has shown volatility over the past month. Between October 20 and November 14, shares traded in a range from $35.47 to $43.62.
Recent Market Turbulence
Figure faced challenges in October when Heloc, a cryptocurrency representing the company’s home equity loans, crashed 81% in a flash event. The crash sent $13 billion worth of loans into turmoil.
The token has since recovered and now trades close to par with Figure’s YLDS dollar stablecoin. However, the incident raised questions about transparency in Figure’s blockchain lending operations.
The company maintains a leverage ratio of 3.2 and shows ample liquidity through its current ratio. Return on invested capital stands at 14.72%.
Figure’s financial reports indicate active management of liabilities. The company appears to be balancing short-term obligations with long-term growth strategies.
The recent price surge reflects renewed investor confidence following the tokenized stock announcement. Market participants are watching to see if the SEC approves this unconventional offering structure.
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