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

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

Wall Street Analysts Forecast Growth

FIG has been the topic of several recent analyst reports. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Figma in a report on Tuesday, May 19th. JPMorgan Chase & Co. decreased their target price on Figma from $45.00 to $42.00 and set a “neutral” rating on the stock in a research report on Friday, May 15th. Wells Fargo & Company lowered their target price 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 set a $25.00 price objective on shares of Figma in a report on Friday, May 15th. Finally, Piper Sandler restated an “overweight” rating and issued a $30.00 price target (down from $35.00) on shares of Figma in a research report on Friday, May 15th. Four investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $38.63.

Figma Stock Performance

The stock has a market cap of $8.02 billion and a P/E ratio of -5.23. The firm’s fifty day simple moving average is $20.63 and its 200-day simple moving average is $27.06.

Figma (NYSE:FIG) last issued its quarterly earnings data on Thursday, May 14th. The company reported $0.10 EPS for the quarter, topping the consensus estimate of ($0.17) by $0.27. Figma had a negative return on equity of 98.51% and a negative net margin of 123.83%.The company had revenue of $333.44 million during the quarter. Figma’s revenue for the quarter was up 46.1% compared to the same quarter last year. Analysts predict that Figma, Inc. will post -0.78 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Figma news, CFO Praveer Melwani sold 83,974 shares of the stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $22.77, for a total transaction of $1,912,087.98. Following the transaction, the chief financial officer owned 1,749,024 shares in the company, valued at approximately $39,825,276.48. This represents a 4.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Brendan Mulligan sold 18,741 shares of Figma stock in a transaction on 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 $24,739,169.44. The trade was a 1.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 699,037 shares of company stock valued at $17,149,692. Insiders own 45.20% of the company’s stock.

Institutional Investors Weigh In On Figma

Institutional investors have recently modified their holdings of the stock. Parallel Advisors LLC increased its stake in Figma by 3,890.0% in the first quarter. Parallel Advisors LLC now owns 1,197 shares of the company’s stock valued at $25,000 after acquiring an additional 1,167 shares during the period. J. Derek Lewis & Associates Inc. raised its stake in Figma by 58.6% in the 1st quarter. J. Derek Lewis & Associates Inc. now owns 20,300 shares of the company’s stock worth $429,000 after purchasing an additional 7,500 shares in the last quarter. Bank of America Corp DE increased its position in Figma by 428.1% during the 1st quarter. Bank of America Corp DE now owns 4,180,575 shares of the company’s stock worth $88,377,000 after purchasing an additional 3,388,902 shares in the last quarter. Sunbelt Securities Inc. boosted its stake in Figma by 287.0% during the first quarter. Sunbelt Securities Inc. now owns 2,225 shares of the company’s stock worth $47,000 after acquiring an additional 1,650 shares in the last quarter. Finally, Royal Bank of Canada raised its holdings in Figma by 37.8% during the first quarter. Royal Bank of Canada now owns 94,704 shares of the company’s stock worth $2,002,000 after buying an additional 25,957 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.