Figma (NYSE:FIG) Reaches New 52-Week Low - Should You Sell?

Key Points

• Shares of Figma hit a new 52-week low of $19.82 on Friday and last traded around $20.20 on heavy volume, trading well below its 50‑day ($26.13) and 200‑day ($38.88) moving averages.
• The company reported revenue up 40.1% to $303.78 million and beat EPS estimates ($0.08 vs. -$0.20), but remains unprofitable with a negative net margin of 121.87% and a negative return on equity of 97.03%.
• Analysts are mixed with a consensus Hold rating and a $43.25 price target amid recent upgrades and cuts (RBC lowered its target to $31), while insiders have sold about 1.62 million shares in the last 90 days and still own 45.2% of the stock.

Shares of Figma, Inc. (NYSE:FIG - Get Free Report) reached a new 52-week low during mid-day trading on Friday . The stock traded as low as $19.82 and last traded at $20.1950, with a volume of 12957163 shares. The stock had previously closed at $22.15.

Wall Street Analysts Forecast Growth

Several research firms recently commented on FIG. Barclays upgraded Figma to a "neutral" rating in a research note on Thursday, January 8th. Oppenheimer began coverage on shares of Figma in a research report on Wednesday. They set a "market perform" rating on the stock. Weiss Ratings reiterated a "sell (e+)" rating on shares of Figma in a research note on Monday, December 29th. Royal Bank Of Canada lowered their price objective on Figma from $38.00 to $31.00 and set a "sector perform" rating for the company in a research note on Thursday, February 19th. Finally, Wall Street Zen raised shares of Figma from a "sell" rating to a "hold" rating in a report on Sunday, February 8th. Four equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Figma has a consensus rating of "Hold" and a consensus price target of $43.25.

Figma Stock Performance

The firm has a market cap of $8.90 billion and a price-to-earnings ratio of -6.47. The firm's 50 day moving average is $26.13 and its 200-day moving average is $38.88.

Figma (NYSE:FIG - Get Free Report) last announced its earnings results on Wednesday, February 18th. The company reported $0.08 earnings per share for the quarter, beating the consensus estimate of ($0.20) by $0.28. The firm had revenue of $303.78 million during the quarter. Figma had a negative return on equity of 97.03% and a negative net margin of 121.87%.The business's revenue for the quarter was up 40.1% on a year-over-year basis.

Insider Activity

In other news, CTO Kris Rasmussen sold 205,438 shares of the firm's stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $25.01, for a total value of $5,138,004.38. Following the transaction, the chief technology officer directly owned 10,418,905 shares in the company, valued at $260,576,814.05. This trade represents a 1.93% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Dylan Field sold 250,000 shares of the business's stock in a transaction on Wednesday, January 14th. The shares were sold at an average price of $32.63, for a total transaction of $8,157,500.00. The SEC filing for this sale provides additional information. Insiders have sold a total of 1,616,377 shares of company stock valued at $49,751,858 in the last 90 days. 45.20% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. SC US Ttgp LTD. acquired a new position in shares of Figma during the 3rd quarter worth approximately $1,310,305,000. ICONIQ Capital LLC bought a new position in shares of Figma in the third quarter valued at $1,108,879,000. a16z Capital Management L.L.C. bought a new position in shares of Figma in the third quarter valued at $842,687,000. JPMorgan Chase & Co. raised its position in Figma by 119.4% during the fourth quarter. JPMorgan Chase & Co. now owns 6,643,939 shares of the company's stock worth $248,284,000 after acquiring an additional 3,615,198 shares in the last quarter. Finally, Baillie Gifford & Co. raised its position in Figma by 93.8% during the fourth quarter. Baillie Gifford & Co. now owns 5,763,613 shares of the company's stock worth $215,386,000 after acquiring an additional 2,789,986 shares in the last quarter.

About Figma

Figma is a San Francisco–based software company that offers a web-based platform for interface design, prototyping and collaboration. Its flagship product, Figma, enables teams to create and refine user interfaces, vector graphics and design systems directly in a browser, eliminating the need for local installations. The platform's real-time collaboration features allow multiple stakeholders—designers, developers and product managers—to edit and comment simultaneously, streamlining workflows and reducing version control issues.

In addition to its core design tool, Figma provides FigJam, a digital whiteboarding solution that facilitates brainstorming sessions, wireframing and diagramming.

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