Figma (NYSE:FIG) Stock Price Down 6.5% - Time to Sell?

Key Points

• Stock down 6.5% — FIG fell to $21.70 on Tuesday (previous close $23.20) with about 4.23 million shares traded, roughly 70% below its average daily volume.
• Analyst consensus "Hold" — MarketBeat shows 4 Buys, 8 Holds and 1 Sell with an average price target of $43.25, though several firms recently cut targets into the $30–$35 range.
• Mixed fundamentals and insider selling — Figma beat EPS estimates ($0.08 vs. -$0.20) and revenue rose 40.1% to $303.8M, but it remains deeply unprofitable (net margin -121.9%, negative ROE) and insiders have sold about 1.6M shares (~$49.8M) in the last 90 days.

Figma, Inc. (NYSE:FIG - Get Free Report)'s stock price was down 6.5% on Tuesday . The stock traded as low as $21.75 and last traded at $21.6980. Approximately 4,230,084 shares were traded during trading, a decline of 70% from the average daily volume of 14,202,352 shares. The stock had previously closed at $23.20.

Analysts Set New Price Targets

A number of research analysts recently issued reports on the stock. Piper Sandler reiterated an "overweight" rating and issued a $35.00 price objective on shares of Figma in a report on Thursday, February 19th. Royal Bank Of Canada cut their price target on shares of Figma from $38.00 to $31.00 and set a "sector perform" rating on the stock 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. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Figma in a report on Monday, December 29th. Finally, Stifel Nicolaus reduced their price target on Figma from $40.00 to $30.00 and set a "hold" rating on the stock in a research report on Thursday, February 19th. Four investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $43.25.

Figma Price Performance

The firm's 50 day moving average is $26.78 and its 200 day moving average is $39.36. The company has a market cap of $9.48 billion and a PE ratio of -6.89.

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

Insider Buying and Selling

In related news, General Counsel Brendan Mulligan sold 4,817 shares of the stock in a transaction on Monday, March 16th. The shares were sold at an average price of $26.30, for a total transaction of $126,687.10. Following the transaction, the general counsel owned 825,644 shares of the company's stock, valued at approximately $21,714,437.20. This trade represents a 0.58% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CAO Tyler Herb sold 1,678 shares of Figma stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $28.47, for a total transaction of $47,772.66. Following the completion of the transaction, the chief accounting officer owned 188,913 shares in the company, valued at approximately $5,378,353.11. The trade was a 0.88% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 1,616,377 shares of company stock worth $49,751,858 in the last ninety days.

Institutional Investors Weigh In On Figma

Several institutional investors have recently bought and sold shares of the stock. SC US Ttgp LTD. bought a new stake in Figma during the 3rd quarter valued at about $1,310,305,000. ICONIQ Capital LLC purchased a new stake in shares of Figma in the third quarter valued at approximately $1,108,879,000. a16z Capital Management L.L.C. bought a new position in Figma in the third quarter worth approximately $842,687,000. Viking Global Investors LP purchased a new position in Figma during the 4th quarter worth $214,967,000. Finally, Durable Capital Partners LP purchased a new position in Figma during the 3rd quarter worth $278,510,000.

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.