Overview
BofA Securities moved Figure Technology (NASDAQ:FIGR) from a Neutral rating to Underperform on Tuesday and marginally reduced its price target to $42.00 from $43.00. The new target sits below the current market price of $52.31 and in line with the consensus low target of $43.
Price performance and momentum
BofA noted that FIGR has experienced a substantial rise since going public, gaining 109% in the five months after its initial public offering. Data referenced by BofA show a strong recent run, with InvestingPro indicating a 68.15% price return over the last six months. The stock has, however, shown short-term weakness, dropping 16.68% over the past week.
Valuation concerns cited by BofA
The firm’s downgrade centers on valuation. BofA highlighted that Figure Technology is trading at 46 times its estimated 2027 earnings per share, a multiple the analyst described as "the highest multiple in our coverage." Supporting data show an extremely high current trailing P/E of 134.77 and a Price/Book ratio of 9.59, metrics that BofA and the referenced data imply place the stock well above its Fair Value estimate.
Market positioning and insider activity
BofA also pointed to other market signals. Short interest in FIGR remains low, at roughly 2%, indicating limited bearish positioning despite the equity’s sharp appreciation. In addition, the firm noted insider selling in the fourth quarter of 2025, which it flagged as potential profit-taking by executives and board members following the stock’s gains.
Company developments
Separately, Figure Technology disclosed the launch of its On-Chain Public Equity Network, a platform designed to permit companies to list equity directly on a public blockchain. That system will enable continuous trading of blockchain-registered equities and represents a material product initiative for the company.
Analyst divergence
Other brokerages maintain a more bullish posture. Piper Sandler raised its price target to $75 from $55 while keeping an Overweight rating, citing Figure’s pre-release of selected fourth-quarter 2025 metrics that showed consumer loan marketplace volumes more than 20% above Piper Sandler’s forecast. Mizuho increased its target to $64 from $56 while reiterating an Outperform rating and pointing to multiple catalysts in fintech and payments.
Bernstein reaffirmed an Outperform rating and set a $72 price target, naming Figure Technology its "top pick for 2026." Texas Capital Securities began coverage with a Buy rating and a $82 target, implying about 21% upside from the current trading level. These actions illustrate a range of analyst expectations about Figure’s growth prospects within blockchain and financial technology.
Bottom line
BofA’s downgrade underscores valuation risk as the primary concern at current prices, while several other firms have increased targets or initiated coverage with bullish stances following stronger-than-expected operational metrics. The stock’s recent volatility, limited short interest, and fourth-quarter 2025 insider sales are among the market signals highlighted in conjunction with Figure’s product rollout for on-chain equity trading.