Figma (NYSE:FIG) Stock Price Down 6.9% - Here's Why

Key Points

• Figma shares fell 6.9% on Thursday, trading as low as $17.13 and closing well below the prior session’s $18.64. Trading volume was also sharply below average, suggesting weaker investor participation.
• The company used its Config 2026 event to unveil major platform expansions, including code layers, motion design, generative AI tools, and custom AI plugins. The updates are aimed at making Figma a broader design-and-development workflow platform.
• Wall Street remains mostly cautious but sees upside: Piper Sandler reaffirmed an Overweight rating with a $30 price target, while the overall analyst consensus is Hold with a $37.67 target. Despite revenue growth of 46.1% last quarter, the market is still skeptical that the new features will quickly translate into profitability.

Shares of Figma, Inc. (NYSE:FIG - Get Free Report) traded down 6.9% on Thursday . The company traded as low as $17.13 and last traded at $17.3460. 4,480,142 shares changed hands during trading, a decline of 73% from the average daily volume of 16,578,164 shares. The stock had previously closed at $18.64.

More Figma News

Here are the key news stories impacting Figma this week:

• Positive Sentiment: Figma used its Config 2026 event to showcase a major expansion of its platform, including code layers, motion design, generative AI tools, and custom AI plugins. The new features could strengthen user engagement and support longer-term revenue growth by making Figma a broader design-and-development workflow tool. Figma now has AI motion graphics and shader tools
• Positive Sentiment: Piper Sandler reaffirmed its Overweight rating on Figma and set a $30 price target, implying meaningful upside from recent trading levels. That vote of confidence may help offset some of the recent weakness in the shares. Benzinga report on Piper Sandler rating
• Neutral Sentiment: Multiple outlets highlighted that Figma is bringing coding, motion design, and generative tools into a single canvas, but these announcements are mostly product-positioning updates for now. Investors may view them as promising, though near-term financial impact is still uncertain. Figma brings coding, motion design, and generative tools into a single canvas
• Neutral Sentiment: Analyst coverage comparing Figma with Autodesk focused on growth, margins, and valuation in the AI era. The piece reinforces that Figma is seen as an AI-design contender, but it does not provide a new catalyst on its own. FIG vs. ADSK: Which Design SaaS Stock is a Safer Bet in the AI Era?
• Negative Sentiment: Even with the product launches, Figma is still trading well below its recent highs and remains under pressure after a strong post-listing decline. That suggests the market is still skeptical that the new AI features will quickly translate into profitability or justify the valuation.

Wall Street Analysts Forecast Growth

FIG has been the subject of a number of analyst reports. Piper Sandler restated an "overweight" rating and issued a $30.00 price objective on shares of Figma in a research report on Thursday. BTIG Research assumed coverage on shares of Figma in a report on Monday, April 13th. They set a "neutral" rating on the stock. Morgan Stanley lowered their target price on shares of Figma from $44.00 to $38.00 and set an "equal weight" rating on the stock in a research note on Friday, May 15th. Stifel Nicolaus set a $25.00 price target on shares of Figma in a report on Friday, May 15th. Finally, Citigroup began coverage on shares of Figma in a research report on Wednesday, June 17th. They set a "buy" rating and a $36.00 price target for the company. Five research 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's stock. Based on data from MarketBeat, Figma has a consensus rating of "Hold" and a consensus price target of $37.67.

Figma Stock Down 7.9%

The firm has a market capitalization of $7.65 billion and a P/E ratio of -5.00. The firm's 50-day simple moving average is $20.35 and its 200-day simple moving average is $25.94.

Figma (NYSE:FIG - Get Free Report) last posted its quarterly earnings data on Thursday, May 14th. The company reported $0.10 earnings per share for the quarter, beating the consensus estimate of ($0.17) by $0.27. Figma had a negative net margin of 123.83% and a negative return on equity of 98.51%. The firm had revenue of $333.44 million for the quarter. The business's quarterly revenue was up 46.1% on a year-over-year basis. As a group, analysts expect that Figma, Inc. will post -0.78 EPS for the current fiscal year.

Insider Buying and Selling at Figma

In other Figma news, CAO Tyler Herb sold 1,850 shares of Figma stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $26.40, for a total transaction of $48,840.00. Following the completion of the sale, the chief accounting officer owned 263,435 shares of the company's stock, valued at $6,954,684. The trade was a 0.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Praveer Melwani sold 83,974 shares of the company's stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $22.77, for a total value of $1,912,087.98. Following the completion of the transaction, the chief financial officer owned 1,749,024 shares of the company's stock, valued at $39,825,276.48. The trade was a 4.58% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 694,220 shares of company stock valued at $17,023,005. 45.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Figma

A number of hedge funds have recently made changes to their positions in FIG. Parallel Advisors LLC grew its holdings in shares of Figma by 3,890.0% during the 1st 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 last quarter. J. Derek Lewis & Associates Inc. lifted its stake in Figma by 58.6% in the first quarter. J. Derek Lewis & Associates Inc. now owns 20,300 shares of the company's stock worth $429,000 after purchasing an additional 7,500 shares during the last quarter. Bank of America Corp DE boosted its position in Figma by 428.1% during the first quarter. Bank of America Corp DE now owns 4,180,575 shares of the company's stock valued at $88,377,000 after buying an additional 3,388,902 shares during the period. Sunbelt Securities Inc. boosted its position in Figma by 287.0% during the first quarter. Sunbelt Securities Inc. now owns 2,225 shares of the company's stock valued at $47,000 after buying an additional 1,650 shares during the period. Finally, Royal Bank of Canada grew its stake in shares of Figma by 37.8% during the first quarter. Royal Bank of Canada now owns 94,704 shares of the company's stock valued at $2,002,000 after buying an additional 25,957 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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