Figma (NYSE:FIG) Share Price Breaks Below 200-Day Moving Average - What's Next?

Key Points

• Figma shares fell below their 200-day moving average, trading as low as $22.67 versus the $23.45 average, with the stock last quoted near $22.95.
• Analyst sentiment is mixed but leans cautious: Figma has an average “Hold” rating and a $31.56 price target, compared with four Buy, nine Hold and one Sell recommendations.
• Despite a strong quarter—revenue rose 48.2% year over year and EPS beat expectations—insiders sold 674,763 shares worth $18.2 million over the past three months.

Figma, Inc. (NYSE:FIG - Get Free Report) crossed below its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $23.45 and traded as low as $22.67. Figma shares last traded at $22.9480, with a volume of 9,601,940 shares changing hands.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on FIG. Bank of America raised their target price on shares of Figma from $30.00 to $33.00 and gave the company a "buy" rating in a research note on Wednesday, August 19th. Stifel Nicolaus lowered their target price on shares of Figma from $25.00 to $22.00 and set a "hold" rating on the stock in a report on Wednesday, October 14th. KeyCorp initiated coverage on shares of Figma in a research report on Monday, September 14th. They set a "sector weight" rating on the stock. Piper Sandler reiterated an "overweight" rating on shares of Figma in a research note on Monday. Finally, Morgan Stanley set a $33.00 price target on shares of Figma in a research note on Thursday, August 6th. Four research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Figma has an average rating of "Hold" and an average price target of $31.56.

Figma Stock Down 2.4%

The business has a fifty day moving average of $23.61 and a 200 day moving average of $23.45. The firm has a market cap of $10.44 billion, a P/E ratio of -6.30 and a beta of 1.32.

Figma (NYSE:FIG - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported $0.08 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.22) by $0.30. The business had revenue of $370.08 million during the quarter. During the same quarter last year, the company earned $0.09 EPS. The firm's revenue for the quarter was up 48.2% on a year-over-year basis. Research analysts expect that Figma, Inc. will post -0.75 EPS for the current year.

Insider Buying and Selling at Figma

In other Figma news, CTO Kris Rasmussen sold 196,397 shares of the firm's stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $25.53, for a total transaction of $5,014,015.41. Following the completion of the sale, the chief technology officer owned 9,234,587 shares of the company's stock, valued at $235,759,006.11. This trade represents a 2.08% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CRO Shaunt Voskanian sold 30,000 shares of the firm's stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $27.91, for a total value of $837,300.00. Following the sale, the executive directly owned 1,698,620 shares of the company's stock, valued at $47,408,484.20. This represents a 1.74% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 674,763 shares of company stock worth $18,174,484 in the last three months. 32.26% of the stock is owned by insiders.

Hedge Funds Weigh In On Figma

Several institutional investors and hedge funds have recently modified their holdings of the stock. Amova Asset Management Americas Inc. lifted its position in Figma by 641.4% during the first quarter. Amova Asset Management Americas Inc. now owns 1,467,887 shares of the company's stock worth $31,031,000 after acquiring an additional 1,269,900 shares during the last quarter. Greylock XIV GP LLC acquired a new stake in shares of Figma during the 2nd quarter worth $1,056,824,403. Rokos Capital Management LLP bought a new position in Figma in the 1st quarter valued at about $4,414,000. Citizens Financial Group Inc. RI acquired a new stake in shares of Figma in the 1st quarter valued at $3,429,000. Finally, Dimensional Fund Advisors LP acquired a new stake in Figma in the first quarter valued at about $1,693,000.

About Figma

Figma, Inc NYSE: FIG develops collaborative software for designing digital products and user experiences. Its browser-based platform enables teams to create, prototype, review and manage designs in real time, supporting collaboration among designers, developers, product managers and other stakeholders.

The company's product portfolio includes Figma Design, a collaborative interface-design and prototyping tool; FigJam, an online whiteboard for brainstorming and planning; and Dev Mode, which helps developers inspect designs and translate them into software.

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