Figma (NYSE:FIG) Trading Down 7.5% - Time to Sell?

Key Points

• Shares fell 7.5% to about $33.66 on Tuesday with volume up ~12% versus average, leaving the stock below its 50‑day moving average of $38.32 and a market cap near $14.1 billion.
• Analyst sentiment is mixed — consensus is a “Hold” with an average target of $54.88 after several firms trimmed price targets (examples: Piper Sandler to $70, RBC to $38, JPMorgan to $60); ratings split: 4 Buy, 8 Hold, 1 Sell.
• Fundamentals are mixed: Figma beat EPS expectations ($0.10 vs. a -$1.56 estimate) and revenue rose 38% to $274.2M, but the company still shows a ~99% negative net margin and -84% ROE, and insiders have sold roughly 5.19M shares (~$199M) in the past 90 days.

Shares of Figma, Inc. (NYSE:FIG - Get Free Report) dropped 7.5% on Tuesday . The company traded as low as $33.51 and last traded at $33.66. Approximately 5,307,729 shares traded hands during mid-day trading, an increase of 12% from the average daily volume of 4,734,825 shares. The stock had previously closed at $36.40.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the company. Piper Sandler dropped their price objective on Figma from $85.00 to $70.00 and set an "overweight" rating on the stock in a research note on Thursday, November 6th. Stifel Nicolaus initiated coverage on shares of Figma in a report on Wednesday, January 7th. They set a "hold" rating and a $40.00 target price on the stock. Barclays upgraded shares of Figma to a "neutral" rating in a research note on Thursday, January 8th. JPMorgan Chase & Co. decreased their price objective on shares of Figma from $65.00 to $60.00 and set a "neutral" rating for the company in a research report on Thursday, November 6th. Finally, Royal Bank Of Canada dropped their target price on shares of Figma from $65.00 to $38.00 and set a "sector perform" rating on the stock in a report on Monday, January 5th. Four investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Figma presently has an average rating of "Hold" and a consensus target price of $54.88.

Figma Stock Performance

The company has a market capitalization of $14.05 billion and a price-to-earnings ratio of -12.61. The firm has a fifty day moving average price of $38.32.

Figma (NYSE:FIG - Get Free Report) last released its quarterly earnings results on Wednesday, November 5th. The company reported $0.10 earnings per share for the quarter, beating the consensus estimate of ($1.56) by $1.66. Figma had a negative net margin of 99.32% and a negative return on equity of 84.34%. The firm had revenue of $274.17 million for the quarter. During the same period in the prior year, the company earned $0.04 earnings per share. The firm's revenue was up 38.0% compared to the same quarter last year.

Insider Buying and Selling at Figma

In related news, CFO Praveer Melwani sold 11,880 shares of the firm's stock in a transaction dated Friday, January 2nd. The shares were sold at an average price of $37.21, for a total transaction of $442,054.80. Following the transaction, the chief financial officer directly owned 1,566,545 shares of the company's stock, valued at approximately $58,291,139.45. This trade represents a 0.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, General Counsel Brendan Mulligan sold 5,666 shares of Figma stock in a transaction dated Monday, January 5th. The stock was sold at an average price of $37.25, for a total transaction of $211,058.50. Following the completion of the sale, the general counsel owned 869,053 shares of the company's stock, valued at $32,372,224.25. This trade represents a 0.65% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 5,191,822 shares of company stock worth $198,725,671 in the last 90 days.

Institutional Investors Weigh In On Figma

Several institutional investors have recently made changes to their positions in the stock. SC US Ttgp LTD. bought a new position in Figma during the 3rd quarter worth $1,310,305,000. ICONIQ Capital LLC acquired a new stake in shares of Figma during the 3rd quarter worth $1,108,879,000. a16z Capital Management L.L.C. acquired a new stake in shares of Figma during the 3rd quarter worth $842,687,000. Durable Capital Partners LP bought a new position in shares of Figma in the third quarter worth $278,510,000. Finally, Thrive Capital Management LLC acquired a new position in Figma in the third quarter valued at about $228,034,000.

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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