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

Shares of Figma, Inc. (NYSE:FIG) gapped up before the market opened on Wednesday . The stock had previously closed at $17.98, but opened at $18.95. Figma shares last traded at $19.0050, with a volume of 5,266,113 shares.

Figma News Roundup

Here are the key news stories impacting Figma this week:

• Positive Sentiment: Citi launched coverage on Figma with a Buy/High-risk call and a $36 target, arguing that the company’s AI monetization opportunity is becoming clearer. Citi initiates bullish coverage on figma stock as the ai monetization story takes shape
• Positive Sentiment: Several reports note FIG rose after the Citi initiation, suggesting the upgrade is the main catalyst behind the recent rebound. Stocks making the biggest moves midday: SpaceX, JPMorgan, UniQure, Intel, Figma, Nano Nuclear & more
• Neutral Sentiment: CEO Dylan Field’s comments about AI enthusiasm in Silicon Valley reinforce the market’s focus on Figma’s positioning in the AI ecosystem, but they do not appear to be a direct business update. The Figma CEO Says AI Is Making Silicon Valley’s Billionaires Feel Like Kids Again

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the company. Stifel Nicolaus set a $25.00 target price on Figma in a research note on Friday, May 15th. BTIG Research assumed coverage on shares of Figma in a report on Monday, April 13th. They issued a “neutral” rating on the stock. Weiss Ratings reiterated a “sell (e+)” rating on shares of Figma in a research note on Tuesday, May 19th. JPMorgan Chase & Co. decreased their price objective on shares of Figma from $45.00 to $42.00 and set a “neutral” rating for the company in a report on Friday, May 15th. Finally, Oppenheimer began coverage on shares of Figma in a research report on Wednesday, March 25th. They issued a “market perform” rating for the company. Five research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $38.33.

Figma Trading Up 1.2%

The company has a market cap of $8.41 billion and a price-to-earnings ratio of -5.50. The firm has a 50-day moving average price of $20.37 and a 200 day moving average price of $26.45.

Figma (NYSE:FIG) last posted its quarterly earnings results on Thursday, May 14th. The company reported $0.10 earnings per share (EPS) for the quarter, beating 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 business had revenue of $333.44 million for the quarter. Figma’s quarterly revenue was up 46.1% on a year-over-year basis. Research analysts anticipate that Figma, Inc. will post -0.78 earnings per share for the current fiscal year.

Insider Activity

In other Figma news, CRO Shaunt Voskanian sold 87,510 shares of the stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $23.01, for a total transaction of $2,013,605.10. Following the sale, the executive directly 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 ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Praveer Melwani sold 83,974 shares of the firm’s stock in a transaction dated 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 completion of the transaction, the chief financial officer owned 1,749,024 shares in the company, valued at approximately $39,825,276.48. The trade was a 4.58% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 694,220 shares of company stock valued at $17,023,005 over the last quarter. 45.20% of the stock is owned by company insiders.

Institutional Trading of Figma

Several hedge funds have recently made changes to their positions in the stock. Jones Financial Companies Lllp acquired a new position in Figma during the 3rd quarter valued at approximately $107,000. Vanguard Group Inc. bought a new stake in Figma in the third quarter valued at $2,282,000. Greenland Capital Management LP bought a new stake in Figma in the 3rd quarter valued at about $288,000. US Bancorp DE acquired a new stake in shares of Figma in the third quarter valued at approximately $31,000. Finally, Lansing Street Advisors acquired a new stake in shares of Figma in the third quarter valued at approximately $623,000.

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.