Figma (NYSE:FIG) Trading Down 10.5% – Time to Sell?

Figma, Inc. (NYSE:FIG)’s share price traded down 10.5% during trading on Thursday . The stock traded as low as $26.86 and last traded at $26.89. 4,728,946 shares changed hands during mid-day trading, a decline of 40% from the average session volume of 7,883,130 shares. The stock had previously closed at $30.06.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on the company. Wells Fargo & Company upgraded Figma from an “equal weight” rating to an “overweight” rating and set a $52.00 price target for the company in a report on Thursday, January 8th. The Goldman Sachs Group initiated coverage on shares of Figma in a research note on Monday, January 12th. They issued a “neutral” rating and a $40.00 target price for the company. Piper Sandler dropped their price target on shares of Figma from $85.00 to $70.00 and set an “overweight” rating on the stock in a research report on Thursday, November 6th. JPMorgan Chase & Co. reduced their price objective on shares of Figma from $65.00 to $60.00 and set a “neutral” rating for the company in a research report on Thursday, November 6th. Finally, Morgan Stanley decreased their price objective on shares of Figma from $65.00 to $48.00 and set an “equal weight” rating for the company in a research note on Thursday, January 15th. Four research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $52.13.

Figma Stock Down 10.9%

The company’s 50 day simple moving average is $35.40. The stock has a market cap of $11.14 billion and a PE ratio of -9.99.

Figma (NYSE:FIG) last posted its quarterly earnings results on Wednesday, November 5th. The company reported $0.10 earnings per share for the quarter, topping the consensus estimate of ($1.56) by $1.66. Figma had a negative return on equity of 84.34% and a negative net margin of 99.32%.The company had revenue of $274.17 million during the quarter. During the same quarter in the previous year, the company posted $0.04 EPS. The firm’s revenue was up 38.0% compared to the same quarter last year.

Insider Buying and Selling at Figma

In related news, General Counsel Brendan Mulligan sold 80,934 shares of the firm’s stock in a transaction that occurred on Monday, November 10th. The shares were sold at an average price of $43.47, for a total value of $3,518,200.98. Following the completion of the transaction, the general counsel directly owned 913,181 shares of the company’s stock, valued at approximately $39,695,978.07. This trade represents a 8.14% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CRO Shaunt Voskanian sold 403,335 shares of the business’s stock in a transaction on Monday, November 10th. The shares were sold at an average price of $43.39, for a total transaction of $17,500,705.65. Following the sale, the executive directly owned 1,617,326 shares in the company, valued at $70,175,775.14. The trade was a 19.96% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 5,509,988 shares of company stock worth $209,103,972 over the last three months. Company insiders own 45.20% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Concord Wealth Partners increased its holdings in shares of Figma by 1,446.8% in the fourth quarter. Concord Wealth Partners now owns 727 shares of the company’s stock worth $27,000 after purchasing an additional 680 shares during the period. Quent Capital LLC bought a new position in Figma in the 4th quarter worth about $374,000. Teachers Retirement System of The State of Kentucky raised its holdings in shares of Figma by 127.7% in the 4th quarter. Teachers Retirement System of The State of Kentucky now owns 107,000 shares of the company’s stock valued at $3,999,000 after acquiring an additional 60,000 shares in the last quarter. Rakuten Securities Inc. boosted its position in shares of Figma by 270.9% during the 4th quarter. Rakuten Securities Inc. now owns 11,080 shares of the company’s stock valued at $414,000 after acquiring an additional 8,093 shares during the last quarter. Finally, Brighton Jones LLC bought a new stake in shares of Figma during the 4th quarter valued at about $10,129,000.

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.