Figma (NYSE:FIG) Shares Gap Down on Insider Selling

Key Points

• Figma shares opened lower at $26.03 after closing at $27.27, following insider selling; Chief Accounting Officer Tyler Herb sold 1,840 shares worth approximately $49,938 under a pre-arranged Rule 10b5-1 plan.
• Analysts maintain a mixed but generally neutral view, with five Buy, eight Hold and one Sell rating. Figma has a consensus rating of Hold and an average price target of $32.56.
• Figma’s latest quarter showed stronger-than-expected adjusted earnings of $0.08 per share and 48.2% year-over-year revenue growth to $370.08 million, although the company reported a negative net margin of 123.15%.

Figma, Inc. (NYSE:FIG - Get Free Report)'s share price gapped down before the market opened on Wednesday following insider selling activity. The stock had previously closed at $27.27, but opened at $26.03. Figma shares last traded at $27.0010, with a volume of 2,536,492 shares.

Specifically, CAO Tyler Herb sold 1,840 shares of the firm's stock in a transaction on Friday, August 21st. The stock was sold at an average price of $27.14, for a total value of $49,937.60. Following the completion of the sale, the chief accounting officer directly owned 254,640 shares of the company's stock, valued at $6,910,929.60. This trade represents a 0.72% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Ratings Changes

Several research firms have recently weighed in on FIG. Oppenheimer reiterated a "market perform" rating on shares of Figma in a research note on Thursday, June 25th. Piper Sandler reiterated an "overweight" rating and set a $30.00 target price on shares of Figma in a research report on Thursday, June 25th. Morgan Stanley set a $33.00 target price on shares of Figma in a research note on Thursday, August 6th. Weiss Ratings restated a "sell (e+)" rating on shares of Figma in a research note on Friday, August 14th. Finally, Royal Bank Of Canada reaffirmed a "sector perform" rating on shares of Figma in a report on Thursday, August 6th. Five analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Figma presently has a consensus rating of "Hold" and a consensus price target of $32.56.

Figma Stock Down 1.0%

The stock has a market capitalization of $12.29 billion and a P/E ratio of -7.42. The company has a 50-day moving average price of $22.87 and a two-hundred day moving average price of $22.66.

Figma (NYSE:FIG - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported $0.08 EPS for the quarter, beating analysts' consensus estimates of ($0.22) by $0.30. The company had revenue of $370.08 million during the quarter. Figma had a negative net margin of 123.15% and a negative return on equity of 100.03%. Figma's revenue was up 48.2% compared to the same quarter last year. During the same quarter last year, the business posted $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.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Parallel Advisors LLC increased its holdings in shares of Figma by 3,890.0% in the first quarter. Parallel Advisors LLC now owns 1,197 shares of the company's stock worth $25,000 after purchasing an additional 1,167 shares during the period. NewEdge Advisors LLC bought a new stake in Figma during the third quarter valued at $26,000. DV Equities LLC bought a new stake in Figma during the fourth quarter valued at $26,000. Concord Wealth Partners grew its position in Figma by 1,446.8% during the fourth quarter. Concord Wealth Partners now owns 727 shares of the company's stock worth $27,000 after buying an additional 680 shares in the last quarter. Finally, Harbour Investments Inc. increased its stake in Figma by 1,568.2% in the 4th quarter. Harbour Investments Inc. now owns 734 shares of the company's stock worth $27,000 after acquiring an additional 690 shares during the last quarter.

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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