Figma's (FIG) "Buy" Rating Reiterated at Bank of America

Key Points

• Bank of America reiterated its Buy rating on Figma and kept a $30 price target, which implies about 42% upside from the current share price.
• Other analysts are more cautious overall: the stock’s consensus rating is currently Hold, with a consensus price target of $32.67 after several firms cut or adjusted their targets.
• Figma recently posted Q1 EPS of $0.10, beating estimates, and revenue rose 46.1% year over year to $333.44 million, though the company still reported negative margins and losses on a broader basis.

Figma (NYSE:FIG - Get Free Report)'s stock had its "buy" rating restated by stock analysts at Bank of America in a report released on Tuesday,Benzinga reports. They currently have a $30.00 price target on the stock. Bank of America's price target indicates a potential upside of 42.35% from the stock's current price.

A number of other equities analysts have also weighed in on the stock. JPMorgan Chase & Co. dropped their target price 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. Citigroup began coverage on shares of Figma in a report on Wednesday, June 17th. They issued a "buy" rating and a $36.00 price target on the stock. BTIG Research assumed coverage on shares of Figma in a research note on Monday, April 13th. They issued a "neutral" rating on the stock. Wells Fargo & Company dropped their price objective on shares of Figma from $42.00 to $36.00 and set an "overweight" rating for the company in a report on Friday, June 26th. Finally, Morgan Stanley cut their price objective on Figma from $44.00 to $38.00 and set an "equal weight" rating for the company in a research report on Friday, May 15th. Five research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $32.67.

Figma Price Performance

NYSE FIG opened at $21.07 on Tuesday. The stock's 50 day moving average is $20.42 and its 200 day moving average is $24.92. Figma has a 12 month low of $16.60 and a 12 month high of $142.92.

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

Insider Buying and Selling

In other Figma news, CFO Praveer Melwani sold 83,974 shares of the stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $22.77, for a total transaction 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 $39,825,276.48. This trade represents a 4.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Tyler Herb sold 1,850 shares of Figma stock in a transaction on Monday, June 1st. The stock was sold at an average price of $26.40, for a total transaction of $48,840.00. Following the completion of the transaction, the chief accounting officer directly owned 263,435 shares of the company's stock, valued at $6,954,684. The trade was a 0.70% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 694,220 shares of company stock valued at $17,023,005 in the last three months.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in FIG. SC US Ttgp LTD. increased its stake in Figma by 5.8% during the first quarter. SC US Ttgp LTD. now owns 26,728,171 shares of the company's stock worth $565,034,000 after acquiring an additional 1,466,851 shares during the last quarter. ICONIQ Capital LLC bought a new stake in shares of Figma in the 3rd quarter valued at approximately $1,108,879,000. a16z Capital Management L.L.C. purchased a new position in shares of Figma in the 3rd quarter worth approximately $842,687,000. JPMorgan Chase & Co. boosted its holdings in shares of Figma by 119.4% in the 4th quarter. JPMorgan Chase & Co. now owns 6,643,939 shares of the company's stock worth $248,284,000 after purchasing an additional 3,615,198 shares during the period. Finally, Baillie Gifford & Co. increased its position in shares of Figma by 93.8% during the 4th quarter. Baillie Gifford & Co. now owns 5,763,613 shares of the company's stock valued at $215,386,000 after purchasing an additional 2,789,986 shares during the last quarter.

About Figma

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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