Figma (NYSE:FIG) Upgraded by Citigroup to "Strong-Buy" Rating

Key Points

• Citigroup upgraded Figma to a strong-buy rating, highlighting growing confidence in the company’s AI monetization story. The upgrade appears to be the main catalyst behind the recent move in the stock.
• Analyst sentiment remains mixed overall, with Figma’s consensus rating still at Hold and an average target price of $38.33. Other firms have issued a range of views, including Buy, Hold, and Sell ratings.
• Figma’s latest earnings beat expectations, reporting $0.10 EPS versus estimates for a loss and revenue of $333.44 million, up 46.1% year over year. Even so, the stock remains well below its 12-month high and insiders have recently sold shares.

Figma (NYSE:FIG - Get Free Report) was upgraded by equities researchers at Citigroup to a "strong-buy" rating in a report issued on Wednesday,Zacks.com reports.

A number of other research firms have also weighed in on FIG. Oppenheimer initiated coverage on shares of Figma in a research note on Wednesday, March 25th. They set a "market perform" rating on the stock. Wells Fargo & Company dropped their price objective on shares of Figma from $52.00 to $42.00 and set an "overweight" rating on the stock in a research report on Thursday, February 19th. Weiss Ratings restated a "sell (e+)" rating on shares of Figma in a report on Tuesday, May 19th. JPMorgan Chase & Co. decreased their price objective on shares of Figma from $45.00 to $42.00 and set a "neutral" rating for the company in a research report on Friday, May 15th. Finally, Piper Sandler reissued an "overweight" rating and issued a $30.00 target price (down from $35.00) on shares of Figma in a report on Friday, May 15th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $38.33.

Figma Trading Up 1.2%

Shares of NYSE FIG opened at $18.88 on Wednesday. The stock has a market cap of $8.41 billion and a P/E ratio of -5.50. The business's fifty day simple moving average is $20.37 and its 200-day simple moving average is $26.45. Figma has a 12-month low of $16.60 and a 12-month high of $142.92.

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

Insider Activity at Figma

In other news, CFO Praveer Melwani sold 83,974 shares of the company's stock in a transaction on Wednesday, June 3rd. The shares were 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 in the company, valued at approximately $39,825,276.48. This represents a 4.58% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CRO Shaunt Voskanian sold 87,510 shares of the stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $23.01, for a total transaction of $2,013,605.10. Following the completion of the transaction, the executive directly owned 1,781,380 shares in the company, valued at $40,989,553.80. This trade represents a 4.68% 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. Insiders have sold 694,220 shares of company stock valued at $17,023,005 in the last quarter. Company insiders own 45.20% of the company's stock.

Hedge Funds Weigh In On Figma

Several hedge funds have recently made changes to their positions in FIG. NewEdge Advisors LLC purchased a new stake in shares of Figma in the 3rd quarter valued at about $26,000. Wilmington Savings Fund Society FSB purchased a new position in Figma during the 3rd quarter worth approximately $27,000. Sunbelt Securities Inc. acquired a new position in Figma during the third quarter worth approximately $30,000. US Bancorp DE acquired a new position in Figma during the third quarter worth approximately $31,000. Finally, Montag A & Associates Inc. purchased a new stake in Figma in the third quarter valued at approximately $33,000.

Figma News Roundup

Here are the key news stories impacting Figma this week:

• Positive Sentiment: Citi launched coverage on Figma with a Buy/High-risk call and a $36 target, arguing that the company’s AI monetization opportunity is becoming clearer. Citi initiates bullish coverage on figma stock as the ai monetization story takes shape
• Positive Sentiment: Several reports note FIG rose after the Citi initiation, suggesting the upgrade is the main catalyst behind the recent rebound. Stocks making the biggest moves midday: SpaceX, JPMorgan, UniQure, Intel, Figma, Nano Nuclear & more
• Neutral Sentiment: CEO Dylan Field’s comments about AI enthusiasm in Silicon Valley reinforce the market’s focus on Figma’s positioning in the AI ecosystem, but they do not appear to be a direct business update. The Figma CEO Says AI Is Making Silicon Valley’s Billionaires Feel Like Kids Again

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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