Figma (NYSE:FIG) Shares Gap Up – Time to Buy?

Figma, Inc. (NYSE:FIG) shares gapped up prior to trading on Tuesday . The stock had previously closed at $21.08, but opened at $22.33. Figma shares last traded at $21.9550, with a volume of 4,197,750 shares traded.

Analyst Ratings Changes

Several brokerages have recently commented on FIG. Morgan Stanley decreased their price objective on shares of Figma from $44.00 to $38.00 and set an “equal weight” rating on the stock in a research report on Friday, May 15th. Wells Fargo & Company dropped their target price on shares of Figma from $42.00 to $36.00 and set an “overweight” rating for the company in a report on Friday, June 26th. Weiss Ratings reiterated a “sell (e+)” rating on shares of Figma in a research note on Tuesday, May 19th. Bank of America started coverage on Figma in a report on Tuesday. They set a “buy” rating and a $30.00 price target on the stock. Finally, Citigroup assumed coverage on Figma in a research report on Wednesday, June 17th. They issued a “buy” rating and a $36.00 price objective on the stock. Five 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 stock. According to data from MarketBeat.com, Figma presently has an average rating of “Hold” and a consensus price target of $32.67.

Figma Trading Up 8.4%

The firm’s 50 day simple moving average is $20.42 and its 200 day simple moving average is $24.92. The firm has a market cap of $10.18 billion and a PE ratio of -6.69.

Figma (NYSE:FIG) last issued its earnings results on Thursday, May 14th. The company reported $0.10 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.17) by $0.27. The firm had revenue of $333.44 million for the quarter. Figma had a negative return on equity of 98.51% and a negative net margin of 123.83%.The firm’s revenue for the quarter was up 46.1% compared to the same quarter last year. As a group, equities research 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 Figma stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $22.77, for a total value of $1,912,087.98. Following the completion of the transaction, the chief financial officer directly owned 1,749,024 shares of the company’s stock, valued at $39,825,276.48. This trade represents a 4.58% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CRO Shaunt Voskanian sold 87,510 shares of Figma stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $23.01, for a total value of $2,013,605.10. Following the completion of the transaction, the executive owned 1,781,380 shares of the company’s stock, valued at approximately $40,989,553.80. This represents a 4.68% 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 quarter, insiders have sold 694,220 shares of company stock worth $17,023,005.

Institutional Trading of Figma

Several institutional investors have recently added to or reduced their stakes in the company. ICONIQ Capital LLC purchased a new stake in shares of Figma in the third quarter worth approximately $1,108,879,000. a16z Capital Management L.L.C. purchased a new position in Figma during the 3rd quarter valued at $842,687,000. Viking Global Investors LP bought a new position in Figma in the 4th quarter valued at $214,967,000. Durable Capital Partners LP bought a new position in Figma in the 3rd quarter valued at $278,510,000. Finally, Thrive Capital Management LLC purchased a new stake in Figma in the third quarter worth $228,034,000.

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.