Figs Inc (NYSE: FIGS) ended nearly 20% up on Thursday after legendary investor Ron Baron said it was one of the largest investments he’s made recently.
How much did Baron invest in Figs?
This morning on CNBC’s “Squawk Box”, Baron revealed to have put in a hundred million dollars in the California-based healthcare apparel brand.
We’ve added $100 million in Figs, which you haven’t heard very much about, but you will soon. It’s the Lululemon of healthcare.
Baron is convinced the NYSE-listed firm has a product that’s superior enough to be seen as a disruptor. Brand power, a large addressable market, and “new product lines” were among other reasons why he recommends buying this stock.
As of the end of June, Baron Capital owned 2.4 million shares of Figs Inc.
Grasso agrees with Baron’s outlook
Earlier this month, Figs reported market-beating results for its fiscal second quarter. Agreeing to Baron’s outlook in a separate CNBC interview, Steve Grasso (Chief Executive at Grasso Global) said:
I am constructive on the name. Ron’s comments this morning goosed that stock and now we have a little bit of momentum. I do see some value in it. I’m looking for higher prices in this one.
At $11.91, Figs closed just above its 100-day MA on Thursday. For the year, the stock is still down more than 55%.
Michael Soenen – the Lead Independent Director at Figs also bought over 10,000 shares last week, which speaks to the insider confidence in the future of the company. Figs expects up to $530 million in revenue this year.
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