Figma (NYSE:FIG) Trading Down 5.6% – Here’s What Happened

Figma, Inc. (NYSE:FIG)’s stock price was down 5.6% on Friday . The company traded as low as $17.83 and last traded at $18.2660. Approximately 4,508,705 shares traded hands during mid-day trading, a decline of 72% from the average daily volume of 16,360,584 shares. The stock had previously closed at $19.34.

Wall Street Analyst Weigh In

FIG has been the subject of several recent analyst reports. Weiss Ratings reissued a “sell (e+)” rating on shares of Figma in a report on Tuesday, May 19th. Morgan Stanley reduced their price objective on Figma from $44.00 to $38.00 and set an “equal weight” rating for the company in a report on Friday, May 15th. Piper Sandler reiterated an “overweight” rating and set a $30.00 price objective (down from $35.00) on shares of Figma in a report on Friday, May 15th. JPMorgan Chase & Co. lowered their price objective on Figma from $45.00 to $42.00 and set a “neutral” rating on the stock in a research note on Friday, May 15th. Finally, The Goldman Sachs Group set a $35.00 price objective on Figma in a research note on Thursday, February 19th. Four investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $38.63.

Figma Price Performance

The company has a market capitalization of $8.02 billion and a PE ratio of -5.23. The business’s 50 day simple moving average is $20.63 and its 200 day simple moving average is $27.06.

Figma (NYSE:FIG) last announced its quarterly earnings results on Thursday, May 14th. The company reported $0.10 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.17) by $0.27. The business had revenue of $333.44 million during the quarter. Figma had a negative net margin of 123.83% and a negative return on equity of 98.51%. The company’s revenue was up 46.1% on a year-over-year basis. As a group, analysts anticipate that Figma, Inc. will post -0.78 EPS for the current year.

Insider Activity

In related news, CTO Kris Rasmussen sold 327,046 shares of the business’s stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $25.07, for a total value of $8,199,043.22. Following the completion of the sale, the chief technology officer directly owned 9,771,529 shares in the company, valued at $244,972,232.03. The trade was a 3.24% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Brendan Mulligan sold 18,741 shares of the stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $25.04, for a total value of $469,274.64. Following the completion of the sale, the general counsel directly owned 987,986 shares of the company’s stock, valued at approximately $24,739,169.44. The trade was a 1.86% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 699,037 shares of company stock worth $17,149,692. Corporate insiders own 45.20% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. SC US Ttgp LTD. boosted its holdings in Figma by 5.8% in the first quarter. SC US Ttgp LTD. now owns 26,728,171 shares of the company’s stock valued at $565,034,000 after purchasing an additional 1,466,851 shares during the last quarter. ICONIQ Capital LLC bought a new position in Figma during the third quarter valued at approximately $1,108,879,000. a16z Capital Management L.L.C. acquired a new stake in shares of Figma in the third quarter worth $842,687,000. JPMorgan Chase & Co. raised its holdings in Figma by 119.4% during the 4th quarter. JPMorgan Chase & Co. now owns 6,643,939 shares of the company’s stock worth $248,284,000 after purchasing an additional 3,615,198 shares during the last quarter. Finally, Baillie Gifford & Co. increased its stake in shares of Figma by 93.8% in the 4th quarter. Baillie Gifford & Co. now owns 5,763,613 shares of the company’s stock valued at $215,386,000 after acquiring an additional 2,789,986 shares during the last quarter.

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.