Figma (NYSE:FIG) Shares Down 5.7% - Here's What Happened

Key Points

• Figma shares fell 5.7% on Tuesday, trading as low as $22.80 before closing at $22.6590. Trading volume was well below average, with about 3.86 million shares changing hands versus a 17.47 million average.
• Analyst sentiment remains mixed, with five Buy ratings, ten Hold ratings, and one Sell rating. The consensus price target is $32.67, while recent firms like Piper Sandler and Wells Fargo kept bullish ratings but reduced or maintained targets.
• Figma’s latest earnings showed strong revenue growth but ongoing losses, as quarterly revenue rose 46.1% year over year to $333.44 million and EPS beat estimates at $0.10. However, the company still posted negative margins and analysts expect a full-year loss of $0.79 per share.

Figma, Inc. (NYSE:FIG - Get Free Report)'s share price traded down 5.7% during trading on Tuesday . The company traded as low as $22.80 and last traded at $22.6590. 3,864,376 shares changed hands during trading, a decline of 78% from the average daily volume of 17,467,949 shares. The stock had previously closed at $24.02.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on the stock. Piper Sandler reiterated an "overweight" rating and set a $30.00 price target on shares of Figma in a research note on Thursday, June 25th. Morgan Stanley cut their target price on Figma from $44.00 to $38.00 and set an "equal weight" rating for the company in a research note on Friday, May 15th. Citigroup initiated coverage on Figma in a research note on Wednesday, June 17th. They issued a "buy" rating and a $36.00 price target on the stock. Wells Fargo & Company reduced their target price on Figma from $42.00 to $36.00 and set an "overweight" rating for the company in a report on Friday, June 26th. Finally, Oppenheimer restated a "market perform" rating on shares of Figma in a research report on Thursday, June 25th. Five analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, Figma has an average rating of "Hold" and a consensus price target of $32.67.

Figma Stock Performance

The company has a fifty day simple moving average of $21.28 and a two-hundred day simple moving average of $23.85. The company has a market capitalization of $9.85 billion and a price-to-earnings ratio of -6.45.

Figma (NYSE:FIG - Get Free Report) last posted its quarterly earnings results on Thursday, May 14th. The company reported $0.10 EPS for the quarter, beating the consensus estimate of ($0.17) by $0.27. Figma had a negative return on equity of 98.51% and a negative net margin of 123.83%.The company had revenue of $333.44 million during the quarter. The business's revenue for the quarter was up 46.1% on a year-over-year basis. As a group, analysts expect that Figma, Inc. will post -0.79 EPS for the current year.

Insider Activity

In other news, General Counsel Brendan Mulligan sold 18,741 shares of the business's stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $25.04, for a total transaction of $469,274.64. Following the completion of the sale, the general counsel directly owned 987,986 shares of the company's stock, valued at $24,739,169.44. The trade was a 1.86% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Kris Rasmussen sold 327,046 shares of the company's stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $25.07, for a total value of $8,199,043.22. Following the sale, the chief technology officer owned 9,771,529 shares of the company's stock, valued at approximately $244,972,232.03. The trade was a 3.24% 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 have sold a total of 733,309 shares of company stock valued at $17,824,756 in the last ninety days. 32.26% of the stock is owned by company insiders.

Institutional Investors Weigh In On Figma

A number of institutional investors have recently added to or reduced their stakes in FIG. Vanguard Group Inc. purchased a new position in shares of Figma in the 3rd quarter worth about $2,282,000. US Bancorp DE purchased a new stake in shares of Figma during the 3rd quarter worth about $31,000. Blair William & Co. IL acquired a new stake in Figma during the 3rd quarter worth approximately $460,000. Banque Cantonale Vaudoise purchased a new position in Figma in the third quarter valued at approximately $271,000. Finally, Franklin Resources Inc. acquired a new position in Figma during the third quarter valued at approximately $9,084,000.

Figma Company Profile

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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