Figma (NYSE:FIG) Shares Gap Up - Here's What Happened

Key Points

• Shares gapped up premarket — FIG opened at $18.73 vs. a $17.70 close and was last around $18.34 on volume of ~4.08 million, reflecting a roughly 7.2% gain.
• Analysts are mixed: the consensus rating is "Hold" with an average price target of $43.25, while several firms recently trimmed their targets (e.g., RBC to $31, Stifel to $30) and ratings remain clustered around hold/buy.
• Fundamentals are mixed — Figma beat EPS expectations ($0.08 vs. -$0.20) with revenue up 40.1% to $303.8M, but the company remains unprofitable (negative net margin and ROE), and insiders have sold material amounts of stock in recent months.

Shares of Figma, Inc. (NYSE:FIG - Get Free Report) gapped up before the market opened on Friday . The stock had previously closed at $17.70, but opened at $18.73. Figma shares last traded at $18.3390, with a volume of 4,075,573 shares.

Wall Street Analyst Weigh In

Several brokerages have weighed in on FIG. Royal Bank Of Canada dropped their price objective on Figma from $38.00 to $31.00 and set a "sector perform" rating for the company in a report on Thursday, February 19th. Stifel Nicolaus dropped their price target on shares of Figma from $40.00 to $30.00 and set a "hold" rating for the company in a research note on Thursday, February 19th. The Goldman Sachs Group set a $35.00 price objective on shares of Figma in a report on Thursday, February 19th. Morgan Stanley set a $44.00 price objective on shares of Figma in a research note on Thursday, February 19th. Finally, Barclays upgraded shares of Figma to a "neutral" rating in a research report on Thursday, January 8th. Four 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. According to MarketBeat, the company has an average rating of "Hold" and a consensus price target of $43.25.

Figma Stock Up 7.2%

The company's fifty day simple moving average is $23.11 and its two-hundred day simple moving average is $32.50. The company has a market capitalization of $8.43 billion and a price-to-earnings ratio of -6.08.

Figma (NYSE:FIG - Get Free Report) last announced its quarterly earnings results on Wednesday, February 18th. The company reported $0.08 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.20) by $0.28. The company had revenue of $303.78 million during the quarter. Figma had a negative net margin of 121.87% and a negative return on equity of 97.03%. Figma's revenue for the quarter was up 40.1% on a year-over-year basis. Equities research analysts expect that Figma, Inc. will post -0.69 earnings per share for the current year.

Insiders Place Their Bets

In related news, CRO Shaunt Voskanian sold 8,554 shares of the company's stock in a transaction on Wednesday, February 25th. The shares were sold at an average price of $30.00, for a total value of $256,620.00. Following the completion of the transaction, the executive directly owned 1,580,181 shares of the company's stock, valued at approximately $47,405,430. This represents a 0.54% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Dylan Field sold 250,000 shares of the business's stock in a transaction dated Thursday, February 26th. The shares were 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 sold 1,060,645 shares of company stock worth $30,526,164 in the last three months. 45.20% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Figma

Institutional investors have recently bought and sold shares of the company. SC US Ttgp LTD. bought a new position in shares of Figma during the 3rd quarter worth approximately $1,310,305,000. ICONIQ Capital LLC acquired a new stake in Figma in the 3rd quarter valued at $1,108,879,000. a16z Capital Management L.L.C. bought a new stake in Figma during the 3rd quarter worth about $842,687,000. JPMorgan Chase & Co. boosted its stake in shares of Figma by 119.4% during the 4th quarter. JPMorgan Chase & Co. now owns 6,643,939 shares of the company's stock worth $248,284,000 after buying an additional 3,615,198 shares during the last quarter. Finally, Baillie Gifford & Co. grew its holdings in shares of Figma by 93.8% in the 4th quarter. Baillie Gifford & Co. now owns 5,763,613 shares of the company's stock valued at $215,386,000 after acquiring an additional 2,789,986 shares in 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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