Figma (NYSE:FIG) Trading Up 8.8% - Should You Buy?

Key Points

• Up 8.8% on Monday to $20.39 (intraday high $20.40) on roughly 4.82M shares traded, a 67% decline from its average daily volume.
• Analyst consensus is a Hold with an average price target of $43.25; recent reports include multiple price-target cuts even though four analysts still rate the stock Buy (10 Hold, 1 Sell).
• Figma reported revenue up 40.1% to $303.78M and beat EPS estimates ($0.08 vs. -$0.20), but remains unprofitable with a negative net margin of 121.87% and saw insiders sell about 956,362 shares (~$27.9M) last quarter.

Figma, Inc. (NYSE:FIG - Get Free Report) was up 8.8% on Monday . The company traded as high as $20.40 and last traded at $20.3930. Approximately 4,824,245 shares were traded during trading, a decline of 67% from the average daily volume of 14,740,053 shares. The stock had previously closed at $18.74.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on FIG shares. Oppenheimer started coverage on shares of Figma in a research report on Wednesday, March 25th. They set a "market perform" rating on the stock. Royal Bank Of Canada reduced their price target on shares of Figma from $38.00 to $31.00 and set a "sector perform" rating on the stock in a research report on Thursday, February 19th. Stifel Nicolaus reduced their price target on shares of Figma from $40.00 to $30.00 and set a "hold" rating on the stock in a research report on Thursday, February 19th. Wall Street Zen raised shares of Figma from a "sell" rating to a "hold" rating in a research report on Sunday, February 8th. Finally, Morgan Stanley set a $44.00 price target on shares of Figma in a research report on Thursday, February 19th. Four equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $43.25.

Figma Stock Up 6.6%

The business's fifty day moving average is $23.11 and its 200 day moving average is $32.08. The firm has a market capitalization of $8.87 billion and a price-to-earnings ratio of -6.40.

Figma (NYSE:FIG - Get Free Report) last issued its quarterly earnings data on Wednesday, February 18th. The company reported $0.08 EPS for the quarter, topping 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% compared to the same quarter last year. Equities research analysts expect that Figma, Inc. will post -0.69 EPS for the current year.

Insider Buying and Selling at Figma

In other Figma news, General Counsel Brendan Mulligan sold 4,817 shares of Figma stock in a transaction on Monday, March 16th. The shares were sold at an average price of $26.30, for a total value of $126,687.10. Following the sale, the general counsel directly owned 825,644 shares in the company, valued at approximately $21,714,437.20. The trade was a 0.58% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Dylan Field sold 236,930 shares of Figma stock in a transaction on Thursday, February 26th. The shares were sold at an average price of $30.77, for a total transaction of $7,290,336.10. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 956,362 shares of company stock valued at $27,933,688 over the last quarter.

Institutional Investors Weigh In On Figma

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. SC US Ttgp LTD. acquired a new stake in Figma in the 3rd quarter valued at $1,310,305,000. ICONIQ Capital LLC acquired a new stake in Figma in the 3rd quarter valued at $1,108,879,000. a16z Capital Management L.L.C. acquired a new stake in Figma in the 3rd quarter valued at $842,687,000. JPMorgan Chase & Co. increased its stake in Figma by 119.4% in the 4th quarter. JPMorgan Chase & Co. now owns 6,643,939 shares of the company's stock valued at $248,284,000 after buying an additional 3,615,198 shares during the last quarter. Finally, Baillie Gifford & Co. increased its stake in Figma by 93.8% in the 4th quarter. Baillie Gifford & Co. now owns 5,763,613 shares of the company's stock valued at $215,386,000 after buying an additional 2,789,986 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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