Figma (NYSE:FIG) Stock Price Down 5.1% - Time to Sell?

Key Points

• Figma shares fell 5.1% to about $21.19 on trading volume below its daily average, with the stock now below its 50-day moving average of $24.67 and near its 200-day average of $22.57.
• Analyst sentiment is mostly neutral: nine analysts rate Figma a Hold, four rate it Buy and one rates it Sell, producing a consensus Hold rating and a $32.56 target price.
• Figma’s latest quarter exceeded EPS expectations and revenue rose 48.2% year over year to $370.08 million, but the company remains unprofitable with a negative net margin of 123.15%; insiders also sold more than 1.3 million shares in the last quarter.

Shares of Figma, Inc. (NYSE:FIG - Get Free Report) dropped 5.1% on Tuesday . The company traded as low as $21.34 and last traded at $21.1930. Approximately 7,581,953 shares traded hands during trading, a decline of 57% from the average daily volume of 17,802,047 shares. The stock had previously closed at $22.33.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on FIG. Oppenheimer reaffirmed a "market perform" rating on shares of Figma in a research report on Thursday, June 25th. KeyCorp began coverage on Figma in a research report on Monday, September 14th. They set a "sector weight" rating on the stock. Wells Fargo & Company lowered their price target on Figma from $42.00 to $36.00 and set an "overweight" rating for the company in a report on Friday, June 26th. Morgan Stanley set a $33.00 price objective on shares of Figma in a report on Thursday, August 6th. Finally, Weiss Ratings downgraded shares of Figma from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Monday, September 14th. Four analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Figma presently has a consensus rating of "Hold" and a consensus target price of $32.56.

Figma Stock Performance

The stock's fifty day moving average price is $24.67 and its 200-day moving average price is $22.57. The firm has a market cap of $9.74 billion and a PE ratio of -5.88.

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

Insider Activity

In other Figma news, Director Daniel Rimer sold 12,475 shares of the firm's stock in a transaction on Monday, August 10th. The stock was sold at an average price of $25.39, for a total transaction of $316,740.25. Following the completion of the transaction, the director owned 786,700 shares of the company's stock, valued at approximately $19,974,313. This trade represents a 1.56% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, major shareholder Ventures Vi (Jersey) Lp Index sold 12,475 shares of the company's stock in a transaction on Monday, August 10th. The shares were sold at an average price of $25.39, for a total value of $316,740.25. Following the completion of the sale, the insider owned 786,700 shares in the company, valued at $19,974,313. This represents a 1.56% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 1,332,269 shares of company stock worth $34,624,827 in the last quarter. 32.26% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Figma

Institutional investors have recently modified their holdings of the company. Bienville Capital Management LLC purchased a new stake in Figma in the 2nd quarter worth approximately $13,325,000. WINTON GROUP Ltd purchased a new position in shares of Figma during the 2nd quarter worth $340,000. Engineers Gate Manager LP boosted its holdings in shares of Figma by 1,806.3% during the second quarter. Engineers Gate Manager LP now owns 316,215 shares of the company's stock worth $5,720,000 after purchasing an additional 299,627 shares during the last quarter. RFG Advisory LLC grew its position in shares of Figma by 23.3% in the second quarter. RFG Advisory LLC now owns 18,622 shares of the company's stock valued at $337,000 after purchasing an additional 3,522 shares during the period. Finally, IFP Advisors Inc grew its position in shares of Figma by 176.1% in the second quarter. IFP Advisors Inc now owns 4,327 shares of the company's stock valued at $78,000 after purchasing an additional 2,760 shares during the period.

About Figma

Figma, Inc develops collaborative software for designing, prototyping and building digital products. Its cloud-based platform enables product designers, developers, marketers and other stakeholders to work together in real time on user interfaces, prototypes and digital experiences.

The company's product portfolio includes Figma Design for interface design and prototyping, FigJam for online whiteboarding and brainstorming, and Dev Mode, which helps developers inspect designs and translate them into code.

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