Figma (NYSE:FIG) Trading Down 8.9% Following Insider Selling

Figma, Inc. (NYSE:FIG) fell 8.9% during trading on Monday following insider selling activity. The stock traded as low as $23.58 and last traded at $23.78. 5,655,337 shares changed hands during trading, a decline of 59% from the average session volume of 13,898,749 shares. The stock had previously closed at $26.09.

Specifically, General Counsel Brendan Mulligan sold 5,227 shares of the firm’s stock in a transaction on Thursday, February 19th. The shares were sold at an average price of $26.00, for a total value of $135,902.00. Following the completion of the sale, the general counsel owned 845,262 shares in the company, valued at approximately $21,976,812. This trade represents a 0.61% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Tyler Herb sold 1,492 shares of the stock in a transaction dated Thursday, February 19th. The stock was sold at an average price of $26.00, for a total transaction of $38,792.00. Following the transaction, the chief accounting officer directly owned 194,434 shares of the company’s stock, valued at $5,055,284. This represents a 0.76% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on FIG shares. JPMorgan Chase & Co. lowered their price objective on Figma from $65.00 to $60.00 and set a “neutral” rating on the stock in a report on Thursday, November 6th. Wells Fargo & Company reduced their price objective on shares of Figma from $52.00 to $42.00 and set an “overweight” rating for the company in a research note on Thursday, February 19th. Stifel Nicolaus decreased their price target on Figma from $40.00 to $30.00 and set a “hold” rating on the stock in a research note on Thursday, February 19th. Barclays raised Figma to a “neutral” rating in a research note on Thursday, January 8th. Finally, Wall Street Zen upgraded Figma from a “sell” rating to a “hold” rating in a research report on Sunday, February 8th. Four investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $43.25.

Key Figma News

Here are the key news stories impacting Figma this week:

• Positive Sentiment: Director Andrew Phillips Reed completed sizable disclosed purchases this week (totaling ~1.47M shares across filings at ~$24.30–$25.90, roughly $36M), a strong signal of insider confidence that likely attracted buyer interest. Read More.
• Positive Sentiment: ARK Invest (Cathie Wood) added to its FIG position (~$11.8M reported), bringing momentum from a well‑known growth manager and drawing attention from other active growth/AI investors. Read More.
• Positive Sentiment: Fundamentals provided a near‑term boost — Figma beat EPS estimates (reported $0.08 vs. consensus ~($0.20)) and posted revenue up ~40% year‑over‑year, reinforcing the growth thesis behind recent inflows. Read More.
• Neutral Sentiment: Coverage of Figma’s new AI pricing is spotlighting tradeoffs between driving usage vs. monetization; outcome is ambiguous — could accelerate revenue if adoption rises or compress usage if pricing is a headwind. Read More.
• Neutral Sentiment: Small, routine insider sales (e.g., General Counsel Brendan Mulligan sold ~5.2k shares) were reported; these appear immaterial relative to the large director buys but are noted by the market. Read More.
• Negative Sentiment: Short interest jumped ~47.5% in February to ~28.6M shares (≈6.5% of shares short) with a ~1.7 days‑to‑cover — the rise in bearish positioning raises volatility risk and could fuel short‑term pressure if sentiment flips.
• Negative Sentiment: Several analysts have trimmed price targets and the consensus remains a “Hold” with an average target in the mid‑$40s, which may limit upside for momentum traders despite recent buying. Read More.

Figma Trading Up 14.3%

The company’s 50 day simple moving average is $30.55 and its 200 day simple moving average is $45.39. The stock has a market capitalization of $13.83 billion and a PE ratio of -10.05.

Figma (NYSE:FIG) last issued its quarterly earnings results on Wednesday, February 18th. The company reported $0.08 EPS for the quarter, topping the consensus estimate of ($0.20) by $0.28. The firm had revenue of $303.78 million during the quarter. Figma had a negative net margin of 121.87% and a negative return on equity of 97.03%. The firm’s revenue for the quarter was up 40.1% compared to the same quarter last year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in FIG. Whittier Trust Co. of Nevada Inc. acquired a new stake in Figma during the third quarter worth about $26,000. NewEdge Advisors LLC purchased a new stake in shares of Figma during the 3rd quarter worth about $26,000. Wilmington Savings Fund Society FSB purchased a new stake in shares of Figma during the 3rd quarter worth about $27,000. Sunbelt Securities Inc. purchased a new position in Figma in the third quarter valued at approximately $30,000. Finally, US Bancorp DE purchased a new position in Figma in the third quarter valued at approximately $31,000.

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.