Figma (NYSE:FIG) Shares Down 8.7% - Here's What Happened

Key Points

• Shares fell 8.7% to about $17.51 on Thursday (traded as low as $17.70) on 3.9M shares, a 73% drop versus average volume, giving the company a market cap near $7.6 billion.
• Analysts' consensus rating is a Hold with an average price target of $43.25 (4 Buys, 10 Holds, 1 Sell), well above the current share price.
• Figma beat quarterly EPS estimates ($0.08 vs. -$0.20) and revenue rose 40.1% to $303.8M, but the company remains unprofitable with negative margins and ROE, and insiders have sold roughly 1.06M shares recently, including the CEO's 250,000-share sale.

Shares of Figma, Inc. (NYSE:FIG - Get Free Report) fell 8.7% on Thursday . The stock traded as low as $17.70 and last traded at $17.5080. 3,907,352 shares traded hands during trading, a decline of 73% from the average session volume of 14,599,185 shares. The stock had previously closed at $19.17.

Analyst Upgrades and Downgrades

Several research firms have weighed in on FIG. Wall Street Zen upgraded Figma from a "sell" rating to a "hold" rating in a report on Sunday, February 8th. Piper Sandler reiterated an "overweight" rating and set a $35.00 target price on shares of Figma in a report on Thursday, February 19th. Oppenheimer began coverage on Figma in a report on Wednesday, March 25th. They set a "market perform" rating on the stock. Weiss Ratings reiterated a "sell (e+)" rating on shares of Figma in a report on Monday, December 29th. Finally, BTIG Research assumed coverage on Figma in a report on Monday, April 13th. They set a "neutral" rating on the stock. Four research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $43.25.

Figma Stock Down 10.3%

The company has a market capitalization of $7.59 billion and a P/E ratio of -5.51. The business has a fifty day moving average price of $23.84 and a 200 day moving average price of $34.23.

Figma (NYSE:FIG - Get Free Report) last issued its quarterly earnings results on Wednesday, February 18th. The company reported $0.08 EPS for the quarter, beating analysts' consensus estimates of ($0.20) by $0.28. The company had revenue of $303.78 million for 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% compared to the same quarter last year. As a group, equities analysts forecast that Figma, Inc. will post -0.69 earnings per share for the current year.

Insider Buying and Selling at Figma

In related news, General Counsel Brendan Mulligan sold 4,817 shares of the company's stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $26.30, for a total transaction of $126,687.10. Following the sale, the general counsel owned 825,644 shares in the company, valued at approximately $21,714,437.20. This represents a 0.58% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Dylan Field sold 250,000 shares of the company's stock in a transaction dated Thursday, February 26th. The stock was sold at an average price of $30.80, for a total value of $7,700,000.00. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 1,060,645 shares of company stock valued at $30,526,164 in the last ninety days. Insiders own 45.20% of the company's stock.

Institutional Trading of Figma

Several institutional investors and hedge funds have recently bought and sold shares of FIG. Voya Investment Management LLC bought a new stake in Figma during the third quarter worth about $3,412,000. VERITY Wealth Advisors bought a new stake in Figma during the third quarter worth about $519,000. Tripletail Wealth Management LLC bought a new stake in Figma during the third quarter worth about $53,000. Renaissance Capital LLC bought a new stake in Figma during the third quarter worth about $2,439,000. Finally, SOA Wealth Advisors LLC. bought a new stake in Figma during the third quarter worth about $39,000.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.