Figma (NYSE:FIG) Shares Down 7% - Should You Sell?

Key Points

• Figma shares fell ~7% intraday to $18.89 on heavy volume (25.66M, +76% vs. average), trading well below its 50‑day ($24.14) and 200‑day ($35.27) moving averages and with a market cap around $8.37B.
• Q results showed mixed fundamentals: revenue rose 40.1% YoY to $303.8M and EPS beat ($0.08 vs. -$0.20 expected), but the company remains unprofitable with a net margin of -121.9% and negative ROE.
• Sentiment is mixed — product momentum (reintroduced AI "Weave") and some analyst upgrades contrast with governance/competitive concerns after Anthropic’s CPO left the board and notable insider selling (1.06M+ shares sold in 90 days); consensus rating is a "Hold" with a $43.25 target.

Figma, Inc. (NYSE:FIG - Get Free Report) shares fell 7% during mid-day trading on Friday . The company traded as low as $18.71 and last traded at $18.89. 25,658,070 shares changed hands during mid-day trading, an increase of 76% from the average session volume of 14,559,011 shares. The stock had previously closed at $20.32.

Key Headlines Impacting Figma

Here are the key news stories impacting Figma this week:

• Positive Sentiment: Figma reintroduced "Weave" with 20+ new AI-native design workflows, which could boost product differentiation and retention for designers. Reintroducing Figma Weave
• Positive Sentiment: Analyst coverage: Seeking Alpha issued a partial upgrade, signaling some investor confidence in the company's growth trajectory and valuation setup. Figma: Is It Finally Time? Partially (Rating Upgrade)
• Positive Sentiment: Coverage suggests Figma is building a stronger creative presence in Europe, which may support international revenue growth and adoption. Is Figma Building A Stronger Creative Presence In Europe?
• Positive Sentiment: Recent intraday rallies were driven by short-term catalysts highlighted in press coverage, showing the stock remains responsive to news flow. This Propelled Figma’s (FIG) Double-Digit Gain Today
• Neutral Sentiment: Valuation pieces note recent share swings and wide valuation dispersion — useful context but not a direct catalyst. Investors are reassessing multiples after volatile moves. Assessing Figma (FIG) Valuation After Recent Share Price Swings
• Neutral Sentiment: Market commentary explains shifting bets around FIG amid volatility — highlights positioning changes but no single clear directional trigger. Why Market Bets Are Shifting Around Figma Amid Volatility?
• Neutral Sentiment: Pop-culture tie-ins (e.g., collectible figures) surfaced but are peripheral to core SaaS metrics and unlikely to move the stock materially. Figma figures of Bunny Garden 2 characters confirmed
• Negative Sentiment: Board shake-up: Anthropic’s CPO recently left Figma’s board amid reports he may offer a competing product — this raises governance and competitive-risk concerns. Anthropic CPO leaves Figma’s board
• Negative Sentiment: Broader competitive risk: reporting on Anthropic’s next AI model suggests potential disruption to design tools, amplifying investor fears about future competition in AI-assisted design. Anthropic’s Next AI Model Could Disrupt Design Tools
• Negative Sentiment: Public commentary (including on TV) has flagged the stock's decline and negative sentiment, which can accelerate outflows and short-term selling pressure. Jim Cramer Addresses the Reason Behind Figma Stock’s Decline

Wall Street Analyst Weigh In

Several analysts have recently weighed in on the stock. BTIG Research assumed coverage on shares of Figma in a research report on Monday. They set a "neutral" rating for the company. Wall Street Zen raised shares of Figma from a "sell" rating to a "hold" rating in a research report on Sunday, February 8th. Piper Sandler reissued an "overweight" rating and issued a $35.00 price target on shares of Figma in a research report on Thursday, February 19th. The Goldman Sachs Group set a $35.00 price objective on shares of Figma in a research note on Thursday, February 19th. Finally, Wells Fargo & Company dropped their price objective on Figma from $52.00 to $42.00 and set an "overweight" rating on the stock in a report on Thursday, February 19th. Four investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Figma presently has an average rating of "Hold" and a consensus price target of $43.25.

Figma Trading Down 6.7%

The business's fifty day moving average price is $24.14 and its 200 day moving average price is $35.27. The firm has a market capitalization of $8.37 billion and a price-to-earnings ratio of -6.08.

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

Insider Buying and Selling at Figma

In other Figma news, CRO Shaunt Voskanian sold 8,554 shares of the company's stock in a transaction that occurred on Wednesday, February 25th. The stock was sold at an average price of $30.00, for a total transaction of $256,620.00. Following the completion of the sale, the executive directly owned 1,580,181 shares of the company's stock, valued at $47,405,430. This represents a 0.54% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, General Counsel Brendan Mulligan sold 4,817 shares of the stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $26.30, for a total value of $126,687.10. Following the sale, the general counsel directly owned 825,644 shares of the company's stock, valued at $21,714,437.20. The trade was a 0.58% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 1,060,645 shares of company stock valued at $30,526,164. Corporate insiders own 45.20% of the company's stock.

Institutional Investors Weigh In On Figma

Several large investors have recently modified their holdings of the stock. Whittier Trust Co. of Nevada Inc. purchased a new position in Figma in the 3rd quarter valued at $26,000. NewEdge Advisors LLC purchased a new position in Figma during the 3rd quarter worth $26,000. DV Equities LLC purchased a new position in Figma during the 4th quarter worth $26,000. Concord Wealth Partners lifted its stake in shares of Figma by 1,446.8% in the 4th quarter. Concord Wealth Partners now owns 727 shares of the company's stock worth $27,000 after acquiring an additional 680 shares during the period. Finally, Harbour Investments Inc. boosted its holdings in shares of Figma by 1,568.2% in the fourth quarter. Harbour Investments Inc. now owns 734 shares of the company's stock valued at $27,000 after acquiring an additional 690 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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