Figma (NYSE:FIG) Stock Gets Price Target Reduction from Royal Bank Of Canada

Key Points

• Royal Bank of Canada cut its Figma price target from $28 to $24, maintaining a “sector perform” rating; the new target implies 28.45% upside from the prior close.
• Figma’s latest quarter beat earnings expectations, with revenue up 42.8% year over year to $391.4 million. Analysts have an overall “Hold” rating and a consensus price target of $30.70.
• Shares fell to $18.68 on Thursday as investors weighed strong growth and guidance against concerns that spending on AI features could pressure margins.

Figma (NYSE:FIG - Get Free Report) had its price objective cut by stock analysts at Royal Bank Of Canada from $28.00 to $24.00 in a report issued on Thursday, Benzinga reports. The firm currently has a "sector perform" rating on the stock. Royal Bank Of Canada's price objective indicates a potential upside of 28.45% from the stock's previous close.

Several other equities research analysts also recently commented on the company. Oppenheimer reiterated a "market perform" rating on shares of Figma in a report on Thursday. Weiss Ratings upgraded shares of Figma from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Tuesday, October 6th. Telsey Advisory Group started coverage on Figma in a research report on Monday. They set a "hold" rating on the stock. Piper Sandler reaffirmed an "overweight" rating on shares of Figma in a research note on Monday, October 26th. Finally, Rothschild & Co Redburn began coverage on Figma in a research note on Monday. They set a "neutral" rating and a $23.00 price objective for the company. Four analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $30.70.

Figma Stock Performance

Shares of FIG traded down $3.44 during mid-day trading on Thursday, reaching $18.68. The company had a trading volume of 20,477,130 shares, compared to its average volume of 16,763,676. Figma has a 52 week low of $16.60 and a 52 week high of $46.79. The firm has a 50-day moving average price of $23.03 and a 200 day moving average price of $23.06. The company has a market capitalization of $8.50 billion, a price-to-earnings ratio of -5.11 and a beta of 1.17.

Figma (NYSE:FIG - Get Free Report) last announced its quarterly earnings results on Wednesday, November 4th. The company reported $0.10 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.22) by $0.32. Figma had a negative net margin of 123.15% and a negative return on equity of 100.03%. The company had revenue of $391.42 million for the quarter. During the same quarter in the previous year, the firm earned $0.10 EPS. The business's revenue for the quarter was up 42.8% on a year-over-year basis. As a group, research analysts forecast that Figma will post -0.75 earnings per share for the current fiscal year.

Insider Activity at Figma

In other Figma news, major shareholder Ventures Vi (Jersey) Lp Index sold 12,475 shares of the firm's stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $25.39, for a total transaction of $316,740.25. Following the completion of the transaction, the insider owned 786,700 shares in the company, valued at $19,974,313. This trade represents a 1.56% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CAO Tyler Herb sold 2,000 shares of the company's stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $30.00, for a total value of $60,000.00. Following the sale, the chief accounting officer directly owned 252,640 shares in the company, valued at $7,579,200. This trade represents a 0.79% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 393,296 shares of company stock valued at $10,858,069 in the last 90 days. 32.26% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Figma

Institutional investors have recently bought and sold shares of the business. Torrey Growth & Income Advisors grew its stake in Figma by 1.3% in the third quarter. Torrey Growth & Income Advisors now owns 105,781 shares of the company's stock worth $2,238,000 after purchasing an additional 1,355 shares in the last quarter. Fulcrum Asset Management LLP purchased a new position in shares of Figma in the 3rd quarter valued at $2,510,000. Allspring Global Investments Holdings LLC bought a new position in Figma in the third quarter worth about $215,000. J. Derek Lewis & Associates Inc. bought a new stake in shares of Figma in the 3rd quarter valued at about $238,000. Finally, Pictet Asset Management Holding SA boosted its holdings in shares of Figma by 26,445.4% in the 3rd quarter. Pictet Asset Management Holding SA now owns 3,072,370 shares of the company's stock valued at $64,581,000 after buying an additional 3,060,796 shares in the last quarter.

Figma News Summary

Here are the key news stories impacting Figma this week:

• Positive Sentiment: Q3 revenue rose 42.8% year over year to $391.4 million, and earnings beat expectations. Figma also forecast Q4 revenue of $402 million to $404 million and raised its 2026 revenue outlook to $1.497 billion–$1.499 billion. Figma forecasts Q4 revenue and raises 2026 outlook
• Positive Sentiment: Figma said repricing AI credit add-ons helped increase user utilization by 40%, indicating stronger engagement and a potential route to monetizing AI features. Figma: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Figma plans to rely on its own design model as it develops AI products and seeks to improve margins; the payoff depends on execution and the economics of delivering those tools. Figma banking on AI credits and in-house model to lift margins
• Negative Sentiment: Investors are concerned that AI features and development are expensive. Those costs could pressure margins, tempering the upbeat revenue growth and guidance and helping explain why shares fell after the earnings release. Figma's stock falls as investors worry that AI momentum is coming at a high price

About Figma

Figma, Inc NYSE: FIG develops collaborative software for designing digital products and user experiences. Its browser-based platform enables teams to create, prototype, review and manage designs in real time, supporting collaboration among designers, developers, product managers and other stakeholders.

The company's product portfolio includes Figma Design, a collaborative interface-design and prototyping tool; FigJam, an online whiteboard for brainstorming and planning; and Dev Mode, which helps developers inspect designs and translate them into software.

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