Figma (NYSE:FIG) Stock Price Up 4.8% - Here's What Happened

Key Points

• Figma shares rose 4.8% to about $26.19 in mid-day trading, although volume was 87% below the stock’s average daily volume. The company’s market capitalization stood at approximately $11.84 billion.
• Figma reported quarterly revenue of $370.08 million, up 48.2% year over year, and adjusted earnings of $0.08 per share versus analysts’ expected loss of $0.22. Despite the strong results, the company posted deeply negative margins and return on equity.
• Analyst sentiment remains mixed, with an average rating of “Hold” and an average price target of $32.22. Insiders sold more than 1.35 million shares worth approximately $33.7 million over the past three months.

Figma, Inc. (NYSE:FIG - Get Free Report)'s share price was up 4.8% during mid-day trading on Tuesday . The stock traded as high as $26.18 and last traded at $26.1860. Approximately 2,419,353 shares changed hands during mid-day trading, a decline of 87% from the average daily volume of 18,206,395 shares. The stock had previously closed at $24.99.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on the company. Piper Sandler reaffirmed an "overweight" rating and set a $30.00 target price on shares of Figma in a research note on Thursday, June 25th. Oppenheimer reissued a "market perform" rating on shares of Figma in a research report on Thursday, June 25th. Royal Bank Of Canada reaffirmed a "sector perform" rating on shares of Figma in a research report on Thursday, August 6th. Stifel Nicolaus set a $25.00 price objective on shares of Figma in a research note on Friday, May 15th. Finally, Morgan Stanley set a $33.00 target price on shares of Figma in a research report on Thursday, August 6th. Five analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $32.22.

Figma Trading Up 4.1%

The firm has a 50-day simple moving average of $21.93 and a two-hundred day simple moving average of $22.58. The company has a market capitalization of $11.84 billion and a price-to-earnings ratio of -7.13.

Figma (NYSE:FIG - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $0.08 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.22) by $0.30. Figma had a negative return on equity of 100.03% and a negative net margin of 123.15%.The business had revenue of $370.08 million during the quarter. During the same quarter in the prior year, the firm earned $0.09 earnings per share. The firm's quarterly revenue was up 48.2% compared to the same quarter last year. On average, sell-side analysts forecast that Figma, Inc. will post -0.75 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Daniel H. Rimer sold 12,475 shares of Figma stock in a transaction on Monday, August 10th. The shares were sold at an average price of $25.39, for a total value of $316,740.25. Following the completion of the sale, the director owned 786,700 shares of the company's stock, valued at approximately $19,974,313. The trade was a 1.56% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, major shareholder Ventures Vi (Jersey) Lp Index sold 12,475 shares of the company's stock in a transaction on Monday, August 10th. The stock was sold at an average price of $25.39, for a total transaction of $316,740.25. Following the completion of the sale, the insider owned 786,700 shares of the company's stock, valued at $19,974,313. This represents a 1.56% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 1,354,072 shares of company stock valued at $33,678,327. 32.26% of the stock is owned by company insiders.

Hedge Funds Weigh In On Figma

Several institutional investors have recently bought and sold shares of FIG. Vanguard Group Inc. bought a new stake in shares of Figma during the 3rd quarter worth about $2,282,000. US Bancorp DE bought a new position in shares of Figma in the 3rd quarter valued at approximately $31,000. Blair William & Co. IL bought a new position in shares of Figma in the 3rd quarter valued at approximately $460,000. Banque Cantonale Vaudoise acquired a new stake in Figma in the 3rd quarter worth approximately $271,000. Finally, Franklin Resources Inc. acquired a new stake in Figma in the 3rd quarter worth approximately $9,084,000.

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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