Figma (NYSE:FIG) Shares Gap Down After Insider Selling

Key Points

• Figma shares gapped down ahead of trading, opening at $20.67 after closing at $21.67, following insider selling activity.
• Two executives sold stock under pre-arranged Rule 10b5-1 plans: CRO Shaunt Voskanian sold 8,629 shares and CFO Praveer Melwani sold 30,460 shares, reducing their holdings slightly.
• Analyst sentiment remains mixed, with an average Hold rating and a consensus price target of $32.67, while the company recently beat earnings expectations despite still posting negative margins.

Figma, Inc. (NYSE:FIG - Get Free Report) shares gapped down prior to trading on Thursday following insider selling activity. The stock had previously closed at $21.67, but opened at $20.67. Figma shares last traded at $21.5440, with a volume of 2,338,521 shares changing hands.

Specifically, CRO Shaunt Voskanian sold 8,629 shares of Figma stock in a transaction on Monday, July 6th. The shares were sold at an average price of $20.62, for a total transaction of $177,929.98. Following the sale, the executive owned 1,764,672 shares of the company's stock, valued at $36,387,536.64. The trade was a 0.49% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Praveer Melwani sold 30,460 shares of the company's stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $20.48, for a total transaction of $623,820.80. Following the completion of the transaction, the chief financial officer directly owned 1,711,526 shares of the company's stock, valued at approximately $35,052,052.48. The trade was a 1.75% decrease in their ownership of the stock. 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.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on FIG shares. Citigroup began coverage on Figma in a research report on Wednesday, June 17th. They set a "buy" rating and a $36.00 target price on the stock. Weiss Ratings restated a "sell (e+)" rating on shares of Figma in a research note on Tuesday, May 19th. Piper Sandler reissued an "overweight" rating and set a $30.00 target price on shares of Figma in a report on Thursday, June 25th. BTIG Research started coverage on shares of Figma in a research report on Monday, April 13th. They issued a "neutral" rating on the stock. Finally, Bank of America assumed coverage on shares of Figma in a report on Tuesday. They issued a "buy" rating and a $30.00 price target for the company. Five investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $32.67.

Figma Price Performance

The firm has a market capitalization of $9.58 billion and a P/E ratio of -6.27. The firm's fifty day moving average price is $20.60 and its 200-day moving average price is $24.71.

Figma (NYSE:FIG - Get Free Report) last released its earnings results on Thursday, May 14th. The company reported $0.10 earnings per share for the quarter, topping analysts' consensus estimates of ($0.17) by $0.27. The firm had revenue of $333.44 million during the quarter. Figma had a negative return on equity of 98.51% and a negative net margin of 123.83%.The business's revenue for the quarter was up 46.1% compared to the same quarter last year. Analysts expect that Figma, Inc. will post -0.8 earnings per share for the current year.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Parallel Advisors LLC raised its position in shares of Figma by 3,890.0% in the first quarter. Parallel Advisors LLC now owns 1,197 shares of the company's stock valued at $25,000 after purchasing an additional 1,167 shares during the period. NewEdge Advisors LLC acquired a new position in Figma during the third quarter worth $26,000. DV Equities LLC acquired a new stake in shares of Figma during the 4th quarter worth about $26,000. Concord Wealth Partners boosted its holdings 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 in the last quarter. Finally, Harbour Investments Inc. grew its holdings in shares of Figma by 1,568.2% during the fourth quarter. Harbour Investments Inc. now owns 734 shares of the company's stock worth $27,000 after purchasing an additional 690 shares during the last quarter.

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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