Figma (NYSE:FIG) Stock Price Up 8.4% - Here's Why

Key Points

• Figma shares rose 8.4% to $26.82 (intraday high $27.37) on Tuesday, with about 13.0M shares traded—roughly 10% below its average daily volume.
• Figma beat EPS expectations ($0.08 vs. -$0.20) and reported revenue up 40.1% YoY to $303.8M, but remains unprofitable with a -121.9% net margin and -97.0% return on equity.
• Analysts maintain a consensus "Hold" rating with an average price target of $43.25 after several price-target revisions, while insiders sold about 1.48M shares (~$48.6M) in the last quarter.

Figma, Inc. (NYSE:FIG - Get Free Report)'s share price was up 8.4% on Tuesday . The company traded as high as $27.37 and last traded at $26.82. Approximately 13,002,263 shares traded hands during mid-day trading, a decline of 10% from the average daily volume of 14,459,364 shares. The stock had previously closed at $24.75.

Analysts Set New Price Targets

A number of research analysts have recently commented on FIG shares. Royal Bank Of Canada cut their target price on Figma from $38.00 to $31.00 and set a "sector perform" rating on the stock in a research note on Thursday. Stifel Nicolaus reduced their price objective on shares of Figma from $40.00 to $30.00 and set a "hold" rating for the company in a research note on Thursday, February 19th. Morgan Stanley set a $44.00 price target on Figma in a report on Thursday. Barclays upgraded Figma to a "neutral" rating in a research note on Thursday, January 8th. Finally, JPMorgan Chase & Co. dropped their price objective on Figma from $65.00 to $60.00 and set a "neutral" rating on the stock in a research report on Thursday, November 6th. Four research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Figma presently has a consensus rating of "Hold" and an average price target of $43.25.

Figma Stock Up 10.8%

The firm has a market cap of $12.10 billion and a PE ratio of -8.79. The stock has a 50 day moving average price of $30.72 and a two-hundred day moving average price of $45.75.

Figma (NYSE:FIG - Get Free Report) last issued its quarterly earnings results on Wednesday, February 18th. The company reported $0.08 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 business had revenue of $303.78 million for the quarter. The business's revenue for the quarter was up 40.1% on a year-over-year basis.

Insider Activity at Figma

In other news, CFO Praveer Melwani sold 16,247 shares of the company's stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $24.86, for a total value of $403,900.42. Following the sale, the chief financial officer directly owned 1,550,298 shares of the company's stock, valued at $38,540,408.28. This represents a 1.04% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CTO Kris Rasmussen sold 205,438 shares of the stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $25.01, for a total transaction of $5,138,004.38. Following the completion of the sale, the chief technology officer owned 10,418,905 shares in the company, valued at $260,576,814.05. The trade was a 1.93% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 1,476,144 shares of company stock worth $48,572,497 in the last quarter.

Hedge Funds Weigh In On Figma

A number of institutional investors have recently modified their holdings of the stock. Alphabet Inc. acquired a new stake in shares of Figma in the third quarter worth approximately $11,182,000. Rit Capital Partners PLC purchased a new position in Figma in the 3rd quarter valued at $2,592,000. Sumitomo Mitsui Trust Group Inc. acquired a new stake in Figma during the 3rd quarter worth $11,075,000. Rakuten Investment Management Inc. purchased a new stake in shares of Figma during the third quarter worth $4,425,000. Finally, Baillie Gifford & Co. purchased a new stake in shares of Figma during the third quarter worth $154,242,000.

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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