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.

Shares of Figma, Inc. (NYSE:FIG - Get Free Report) were down 16.6% during trading on Thursday following a dissappointing earnings announcement. The company traded as low as $53.20 and last traded at $56.85. Approximately 16,575,897 shares traded hands during mid-day trading, an increase of 35% from the average daily 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 the consensus estimate of $0.08 by ($0.15). The company had revenue of $249.64 million for the quarter, compared to analysts' expectations of $248.97 million. Figma has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on FIG shares. William Blair began coverage on Figma in a research note on Monday, August 25th. They set an "outperform" rating on the stock. Morgan Stanley reduced their target price on shares of Figma from $80.00 to $70.00 and set an "equal weight" rating on the stock in a report on Thursday. Piper Sandler began coverage on shares of Figma in a research report on Thursday. They issued an "overweight" rating and a $85.00 price objective on the stock. The Goldman Sachs Group began coverage on shares of Figma in a research report on Monday, August 25th. They set a "neutral" rating and a $48.00 price objective for the company. Finally, Bank of America lowered their target price on shares of Figma from $85.00 to $69.00 and set a "buy" rating for the company in a research note on Thursday. Three research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat.com, Figma has a consensus rating of "Hold" and a consensus target price of $67.43.

Insider Buying and Selling

In other news, Director Mamoon Amjad Hamid sold 2,756,020 shares of the stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $31.52, for a total value of $86,869,750.40. Following the completion of the sale, the director directly owned 1,559,622 shares of the company's stock, valued at approximately $49,159,285.44. This represents a 63.86% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, major shareholder Perkins Caufield & Bye Kleiner sold 87,366 shares of the company's stock in a transaction on Friday, August 1st. The shares were sold at an average price of $31.52, for a total transaction of $2,753,776.32. Following the completion of the sale, the insider owned 1,559,622 shares of the company's stock, valued at approximately $49,159,285.44. This trade represents a 5.30% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have bought 312,500 shares of company stock valued at $10,312,500 and have sold 19,617,451 shares valued at $618,294,215.

Figma Price Performance

The company has a market capitalization of $27.71 billion and a P/E ratio of 76.82.

Figma Company Profile

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.

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