Figma (NYSE:FIG) Shares Down 4.7% - Here's What Happened

Key Points

• Figma shares fell 4.7% to about $27.45 in mid-day trading, with volume significantly below the stock’s average session volume.
• Analysts remain cautious, with a consensus “Hold” rating and average price target of $32.56; recent targets range from $33 to $42.
• Figma’s latest quarter showed strong momentum, as revenue rose 48.2% year over year to $370.08 million and earnings per share beat estimates, although the company continues to report substantial losses and insiders have sold shares.

Figma, Inc. (NYSE:FIG - Get Free Report)'s stock price traded down 4.7% during mid-day trading on Monday . The company traded as low as $27.34 and last traded at $27.4520. 2,774,589 shares changed hands during mid-day trading, a decline of 85% from the average session volume of 18,007,268 shares. The stock had previously closed at $28.82.

Analysts Set New Price Targets

Several analysts have commented 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 on the stock in a report on Friday, May 15th. Morgan Stanley set a $33.00 price objective on shares of Figma in a research report on Thursday, August 6th. Weiss Ratings upgraded shares of Figma from a "sell (e+)" rating to a "sell (d-)" rating in a report on Thursday. Bank of America boosted their price objective on shares of Figma from $30.00 to $33.00 and gave the company a "buy" rating in a research report on Wednesday, August 19th. Finally, Oppenheimer reaffirmed a "market perform" rating on shares of Figma in a research note on Thursday, June 25th. Five research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $32.56.

Figma Trading Down 4.2%

The company has a market cap of $12.57 billion and a P/E ratio of -7.59. The business has a 50 day moving average price of $23.47 and a 200-day moving average price of $22.80.

Figma (NYSE:FIG - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported $0.08 earnings per share for the quarter, topping the consensus estimate of ($0.22) by $0.30. The company had revenue of $370.08 million for the quarter. Figma had a negative net margin of 123.15% and a negative return on equity of 100.03%. The firm's revenue for the quarter was up 48.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.09 earnings per share. On average, sell-side analysts expect that Figma, Inc. will post -0.75 earnings per share for the current year.

Insider Transactions at Figma

In other news, CFO Praveer Melwani sold 381,288 shares of the stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $25.13, for a total transaction of $9,581,767.44. Following the transaction, the chief financial officer owned 1,725,716 shares in the company, valued at approximately $43,367,243.08. This trade represents a 18.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, 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 Figma stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $23.01, for a total value of $2,013,605.10. Following the sale, the executive directly owned 1,781,380 shares of the company's stock, valued at approximately $40,989,553.80. The trade was a 4.68% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,179,632 shares of company stock worth $29,315,186 over the last three months. Company insiders own 32.26% of the company's stock.

Institutional Investors Weigh In On Figma

A number of institutional investors have recently modified their holdings of FIG. Amova Asset Management Americas Inc. increased its holdings in Figma by 641.4% in the first quarter. Amova Asset Management Americas Inc. now owns 1,467,887 shares of the company's stock valued at $31,031,000 after purchasing an additional 1,269,900 shares during the period. Ieq Capital LLC grew its position in shares of Figma by 1,670.9% in the 4th quarter. Ieq Capital LLC now owns 973,880 shares of the company's stock valued at $36,394,000 after buying an additional 918,886 shares during the last quarter. Rokos Capital Management LLP bought a new stake in shares of Figma in the 1st quarter valued at about $4,414,000. Greylock XIV GP LLC acquired a new stake in shares of Figma in the second quarter valued at about $1,056,824,403. Finally, Citizens Financial Group Inc. RI bought a new position in shares of Figma during the first quarter worth about $3,429,000.

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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