Figma (NYSE:FIG) Shares Down 6.5% – Here’s What Happened

Figma, Inc. (NYSE:FIG)’s share price dropped 6.5% on Tuesday . The stock traded as low as $21.75 and last traded at $21.6980. Approximately 4,230,084 shares traded hands during mid-day trading, a decline of 70% from the average daily volume of 14,202,352 shares. The stock had previously closed at $23.20.

Wall Street Analyst Weigh In

A number of brokerages recently commented on FIG. Wells Fargo & Company dropped their price objective on shares of Figma from $52.00 to $42.00 and set an “overweight” rating on the stock in a report on Thursday, February 19th. Wall Street Zen raised shares of Figma from a “sell” rating to a “hold” rating in a research note on Sunday, February 8th. Stifel Nicolaus lowered their target price on Figma from $40.00 to $30.00 and set a “hold” rating for the company in a report on Thursday, February 19th. Barclays upgraded Figma to a “neutral” rating in a report on Thursday, January 8th. Finally, Morgan Stanley set a $44.00 price objective on Figma in a research report on Thursday, February 19th. 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 company’s stock. Based on data from MarketBeat.com, Figma presently has an average rating of “Hold” and a consensus price target of $43.25.

Figma Stock Down 3.7%

The firm has a market cap of $9.29 billion and a price-to-earnings ratio of -6.75. The company’s fifty day moving average is $26.32 and its 200 day moving average is $39.00.

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

Insiders Place Their Bets

In related news, CEO Dylan Field sold 250,000 shares of the company’s stock in a transaction dated Thursday, February 26th. The stock was sold at an average price of $30.80, for a total transaction of $7,700,000.00. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CTO Kris Rasmussen sold 179,331 shares of the stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $29.80, for a total value of $5,344,063.80. Following the transaction, the chief technology officer directly owned 10,169,178 shares of the company’s stock, valued at $303,041,504.40. This trade represents a 1.73% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 1,616,377 shares of company stock valued at $49,751,858 in the last quarter. 45.20% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Figma

Institutional investors have recently added to or reduced their stakes in the company. Whittier Trust Co. of Nevada Inc. acquired a new stake in Figma in the third quarter valued at $26,000. NewEdge Advisors LLC acquired a new position in shares of Figma during the 3rd quarter worth about $26,000. DV Equities LLC acquired a new stake in Figma in the 4th quarter valued at about $26,000. Concord Wealth Partners lifted its stake in Figma by 1,446.8% in the 4th quarter. Concord Wealth Partners now owns 727 shares of the company’s stock valued at $27,000 after purchasing an additional 680 shares during the last quarter. Finally, Harbour Investments Inc. grew its holdings in Figma by 1,568.2% during the fourth quarter. Harbour Investments Inc. now owns 734 shares of the company’s stock worth $27,000 after purchasing an additional 690 shares during the period.

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.