Stifel Nicolaus Has Lowered Expectations for Figma (NYSE:FIG) Stock Price

Key Points

• Stifel Nicolaus lowered Figma’s price target from $25 to $22 and maintained a “hold” rating, implying only 0.96% upside from the $21.79 share price.
• Analyst sentiment remains cautious: Figma has a consensus “hold” rating and an average price target of $31.56, with four Buy, nine Hold, and one Sell rating.
• Figma beat quarterly EPS estimates and reported 48.2% year-over-year revenue growth to $370.08 million, but it continues to post deeply negative margins; insiders have also sold $34.3 million of stock over the past 90 days.

Figma (NYSE:FIG - Get Free Report) had its price target lowered by equities research analysts at Stifel Nicolaus from $25.00 to $22.00 in a report released on Wednesday, Benzinga reports. The brokerage currently has a "hold" rating on the stock. Stifel Nicolaus' price objective indicates a potential upside of 0.96% from the stock's current price.

A number of other brokerages have also weighed in on FIG. Piper Sandler restated an "overweight" rating and issued a $30.00 price objective on shares of Figma in a research report on Thursday, June 25th. Morgan Stanley set a $33.00 price objective on Figma in a report on Thursday, August 6th. Royal Bank Of Canada reiterated a "sector perform" rating on shares of Figma in a research report on Thursday, August 6th. Weiss Ratings raised Figma from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Tuesday, October 6th. Finally, Wells Fargo & Company dropped their target price on Figma from $34.00 to $30.00 and set an "overweight" rating for the company in a research report on Monday. Four investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $31.56.

Figma Stock Down 0.8%

Shares of NYSE FIG opened at $21.79 on Wednesday. Figma has a 1-year low of $16.60 and a 1-year high of $67.68. The company has a 50-day moving average of $24.05 and a two-hundred day moving average of $22.03.

Figma (NYSE:FIG - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $0.08 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.22) by $0.30. Figma had a negative net margin of 123.15% and a negative return on equity of 100.03%. The company had revenue of $370.08 million for the quarter. During the same quarter in the previous year, the company posted $0.09 earnings per share. Figma's revenue for the quarter was up 48.2% on a year-over-year basis. As a group, sell-side analysts forecast that Figma will post -0.75 earnings per share for the current year.

Insider Activity

In related news, General Counsel Brendan Mulligan sold 211,599 shares of the business's stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $29.79, for a total transaction of $6,303,534.21. Following the completion of the transaction, the general counsel owned 727,952 shares in the company, valued at approximately $21,685,690.08. The trade was a 22.52% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Kris Rasmussen sold 261,301 shares of the company's stock in a transaction that occurred on Wednesday, July 29th. The shares were sold at an average price of $25.07, for a total transaction of $6,550,816.07. Following the completion of the sale, the chief technology officer directly owned 9,492,946 shares of the company's stock, valued at $237,988,156.22. The trade was a 2.68% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 1,315,299 shares of company stock worth $34,303,773 in the last ninety days. Company insiders own 32.26% of the company's stock.

Institutional Trading of Figma

A number of large investors have recently made changes to their positions in the company. Greylock XIV GP LLC acquired a new stake in shares of Figma during the second quarter worth about $1,056,824,403. Cosmic Management LLC acquired a new position in shares of Figma in the 4th quarter valued at approximately $151,535,000. Bank of America Corp DE grew its position in shares of Figma by 428.1% in the 1st quarter. Bank of America Corp DE now owns 4,180,575 shares of the company's stock valued at $88,377,000 after purchasing an additional 3,388,902 shares during the period. Arrowstreet Capital Limited Partnership bought a new stake in Figma during the 1st quarter worth approximately $36,600,000. Finally, SC US Ttgp LTD. increased its stake in Figma by 5.8% during the 1st quarter. SC US Ttgp LTD. now owns 26,728,171 shares of the company's stock worth $565,034,000 after purchasing an additional 1,466,851 shares in the last quarter.

Figma Company Profile

Figma, Inc is a collaborative software company that provides browser-based tools for designing, prototyping and developing digital products. Its platform enables product designers, developers, researchers, marketers and other stakeholders to work together on user interfaces and digital experiences in real time.

The company's product portfolio includes Figma Design for interface design and prototyping, FigJam for collaborative brainstorming and whiteboarding, and Dev Mode, which helps developers inspect designs and translate them into working products.

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