Figma (NYSE:FIG) Stock Price Down 16.6% Following Weak Earnings

Key Points

• Figma's stock plunged 16.6% following the release of its earnings report, which showed a loss of ($0.07) per share against an expected profit of $0.08.
• The company's revenue for the quarter was reported at $249.64 million, slightly exceeding analysts' expectations of $248.97 million.
• Several analysts adjusted their ratings on Figma, with Morgan Stanley lowering their target price from $80 to $70, while Goldman Sachs set a target of $48.

Figma, Inc. (NYSE:FIG - Get Free Report)'s share price fell 16.6% on Thursday following a weaker than expected earnings announcement. The stock traded as low as $53.20 and last traded at $56.85. 16,575,897 shares traded hands during mid-day trading, an increase of 35% from the average session volume of 12,309,021 shares. The stock had previously closed at $68.13.

The company reported ($0.07) earnings per share for the quarter, missing analysts' consensus estimates of $0.08 by ($0.15). The business had revenue of $249.64 million for the quarter, compared to the consensus estimate of $248.97 million. Figma has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the company. JPMorgan Chase & Co. started coverage on Figma in a research report on Monday, August 25th. They set a "neutral" rating and a $65.00 price target on the stock. Wolfe Research assumed coverage on shares of Figma in a report on Monday, August 25th. They set a "peer perform" rating on the stock. William Blair reiterated an "outperform" rating on shares of Figma in a research report on Thursday. Morgan Stanley lowered their target price on Figma from $80.00 to $70.00 and set an "equal weight" rating for the company in a research note on Thursday. Finally, Royal Bank Of Canada cut their price target on Figma from $75.00 to $65.00 and set a "sector perform" rating on the stock in a research note on Thursday. Three investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $67.43.

Insider Buying and Selling at Figma

In related news, major shareholder Perkins Caufield & Bye Kleiner sold 87,366 shares of the business's stock in a transaction that occurred on Friday, August 1st. The shares were sold at an average price of $31.52, for a total value of $2,753,776.32. Following the sale, the insider directly owned 1,559,622 shares in the company, valued at $49,159,285.44. The trade was a 5.30% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Daniel H. Rimer sold 3,293,276 shares of the business's stock in a transaction that occurred on Friday, August 1st. The shares were sold at an average price of $31.52, for a total transaction of $103,804,059.52. Following the transaction, the director directly owned 834,800 shares in the company, valued at $26,312,896. The trade was a 79.78% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders acquired 312,500 shares of company stock worth $10,312,500 and sold 19,617,451 shares worth $618,294,215.

Figma Trading Down 3.1%

The stock has a market capitalization of $21.79 billion and a PE ratio of 71.81.

About Figma

Figma is where teams come together to turn ideas into the world's best digital products and experiences. Every day, billions of people around the world use apps, websites, and other digital experiences that are made in Figma. They're looking up directions on Google Maps; requesting rides with Uber; checking in for flights on JetBlue; streaming shows on Netflix; learning languages with Duolingo; asking questions of Claude; connecting on LinkedIn; buying goods on Mercado Libre; or booking stays and experiences with Airbnb.