Morgan Stanley Lowers Figma (NYSE:FIG) Price Target to $38.00

Key Points

• Morgan Stanley cut its price target on Figma from $44 to $38, while keeping an equal weight rating on the stock. The new target still implies substantial upside from the prior close, but it reflects a more cautious stance.
• Other analysts are also generally mixed on Figma, with several firms recently lowering targets or maintaining neutral/hold views. Overall, the stock’s consensus rating is Hold and the average price target is $41.88.
• Figma reported better-than-expected Q1 results, including EPS of $0.10 and revenue of $333.4 million, up 46.1% year over year. The company also raised its full-year outlook, helped by stronger adoption of its AI tools and expanding customer usage.

Figma (NYSE:FIG - Get Free Report) had its price target reduced by equities researchers at Morgan Stanley from $44.00 to $38.00 in a research report issued on Friday,Benzinga reports. The brokerage presently has an "equal weight" rating on the stock. Morgan Stanley's price objective indicates a potential upside of 87.41% from the stock's previous close.

Several other equities analysts have also recently issued reports on the company. Stifel Nicolaus lowered their price objective on Figma from $40.00 to $30.00 and set a "hold" rating on the stock in a research report on Thursday, February 19th. The Goldman Sachs Group set a $35.00 target price on Figma in a report on Thursday, February 19th. Piper Sandler restated an "overweight" rating and issued a $35.00 price target on shares of Figma in a research note on Thursday, February 19th. Wall Street Zen raised Figma from a "sell" rating to a "hold" rating in a report on Sunday, February 8th. Finally, BTIG Research initiated coverage on Figma in a research report on Monday, April 13th. They set a "neutral" rating on the stock. Four equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $41.88.

Figma Stock Performance

Shares of FIG stock opened at $20.28 on Friday. The company has a market capitalization of $9.01 billion and a price-to-earnings ratio of -6.50. Figma has a one year low of $16.60 and a one year high of $142.92. The company's 50-day moving average is $21.70 and its 200 day moving average is $30.03.

Figma (NYSE:FIG - Get Free Report) last issued its earnings results on Thursday, May 14th. The company reported $0.10 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.17) by $0.27. Figma had a negative net margin of 121.87% and a negative return on equity of 97.03%. The firm had revenue of $333.44 million for the quarter. The company's revenue was up 46.1% compared to the same quarter last year. As a group, research analysts predict that Figma will post -0.69 earnings per share for the current fiscal year.

Insider Activity

In other news, CRO Shaunt Voskanian sold 8,554 shares of the stock in a transaction on Wednesday, February 25th. The stock was sold at an average price of $30.00, for a total transaction of $256,620.00. Following the transaction, the executive directly owned 1,580,181 shares of the company's stock, valued at $47,405,430. This represents a 0.54% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CTO Kris Rasmussen sold 179,331 shares of Figma stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $29.80, for a total value of $5,344,063.80. Following the completion of the sale, the chief technology officer directly owned 10,169,178 shares of the company's stock, valued at $303,041,504.40. The trade was a 1.73% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 745,697 shares of company stock worth $22,665,009. Insiders own 45.20% of the company's stock.

Hedge Funds Weigh In On Figma

Several institutional investors have recently made changes to their positions in the business. Parallel Advisors LLC grew its position in Figma by 3,890.0% during the first quarter. Parallel Advisors LLC now owns 1,197 shares of the company's stock valued at $25,000 after buying an additional 1,167 shares during the period. Whittier Trust Co. of Nevada Inc. bought a new position in Figma in the third quarter worth approximately $26,000. NewEdge Advisors LLC bought a new position in Figma in the third quarter worth approximately $26,000. DV Equities LLC purchased a new position in shares of Figma during the 4th quarter worth $26,000. Finally, Concord Wealth Partners boosted its stake in shares of Figma by 1,446.8% during the 4th quarter. Concord Wealth Partners now owns 727 shares of the company's stock worth $27,000 after acquiring an additional 680 shares during the last quarter.

Key Stories Impacting Figma

Here are the key news stories impacting Figma this week:

• Positive Sentiment: Figma reported Q1 revenue of $333.4 million and EPS of $0.10, beating expectations, with revenue up 46.1% year over year and signs that customers are expanding usage and spending. Figma Announces First Quarter 2026 Financial Results
• Positive Sentiment: The company raised its full-year revenue forecast to about $1.422 billion-$1.428 billion and lifted non-GAAP operating income guidance, suggesting AI-driven growth is translating into stronger financial performance. Figma raises annual revenue forecast as AI drives strong design demand
• Positive Sentiment: Management said adoption of Figma’s AI tools is helping convert more users to paid plans and increasing usage across larger corporate accounts, which supports a stronger long-term monetization story. Figma Lifts Outlook With More Customers, Bigger Spending
• Neutral Sentiment: Investor attention is also on whether Figma can keep sustaining its AI momentum amid broader concerns that competition and regulatory issues could affect the software and AI landscape. Anthropic spat with US emerges as risk factor for Figma, others

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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