Figma (NYSE:FIG) Trading Down 4.2% After Insider Selling

Figma, Inc. (NYSE:FIG)’s stock price dropped 4.2% during mid-day trading on Wednesday following insider selling activity. The company traded as low as $24.02 and last traded at $23.8250. 2,482,915 shares were traded during mid-day trading, a decline of 86% from the average daily volume of 18,289,518 shares. The stock had previously closed at $24.87.

Specifically, major shareholder Ventures Vi (Jersey) Lp Index sold 12,475 shares of Figma stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $25.39, for a total transaction of $316,740.25. Following the completion of the transaction, the insider owned 786,700 shares of the company’s stock, valued at $19,974,313. The trade was a 1.56% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Daniel H. Rimer sold 12,475 shares of the stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $25.39, for a total transaction of $316,740.25. Following the completion of the sale, the director directly owned 786,700 shares in the company, valued at approximately $19,974,313. The trade was a 1.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In other news, CFO Praveer Melwani sold 40,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $26.63, for a total value of $1,065,200.00. Following the completion of the transaction, the chief financial officer directly owned 1,674,544 shares in the company, valued at approximately $44,593,106.72. This trade represents a 2.33% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analysts Set New Price Targets

Several analysts have issued reports on FIG shares. Oppenheimer reiterated a “market perform” rating on shares of Figma in a research note on Thursday, June 25th. Wells Fargo & Company decreased their price target on shares of Figma from $42.00 to $36.00 and set an “overweight” rating on the stock in a report on Friday, June 26th. Stifel Nicolaus set a $25.00 price objective on Figma in a research report on Friday, May 15th. Royal Bank Of Canada reissued a “sector perform” rating on shares of Figma in a research note on Thursday, August 6th. Finally, Piper Sandler restated an “overweight” rating and issued a $30.00 target price on shares of Figma in a research note on Thursday, June 25th. Five equities research 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’s stock. According to MarketBeat.com, Figma has an average rating of “Hold” and an average target price of $32.22.

Figma Stock Performance

The stock has a market cap of $12.03 billion and a PE ratio of -7.26. The company’s 50-day moving average price is $21.78 and its two-hundred day moving average price is $22.63.

Figma (NYSE:FIG) last released its earnings results on Wednesday, August 5th. The company reported $0.08 EPS for the quarter, beating analysts’ consensus estimates of ($0.22) by $0.30. Figma had a negative return on equity of 100.03% and a negative net margin of 123.15%.The business had revenue of $370.08 million for the quarter. During the same period in the prior year, the company earned $0.09 EPS. The firm’s revenue was up 48.2% compared to the same quarter last year. Equities research analysts forecast that Figma, Inc. will post -0.79 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Figma

Large investors have recently modified their holdings of the company. Greylock XIV GP LLC purchased a new stake in Figma in the second quarter worth approximately $1,056,824,403,000. Fluent Financial LLC bought a new stake in shares of Figma in the 2nd quarter worth approximately $765,000. Valeo Financial Advisors LLC purchased a new stake in shares of Figma in the 2nd quarter valued at $203,000. Parallel Advisors LLC grew its holdings in shares of Figma by 3,890.0% during the 1st quarter. Parallel Advisors LLC now owns 1,197 shares of the company’s stock valued at $25,000 after purchasing an additional 1,167 shares during the last quarter. Finally, J. Derek Lewis & Associates Inc. grew its holdings in shares of Figma by 58.6% during the 1st quarter. J. Derek Lewis & Associates Inc. now owns 20,300 shares of the company’s stock valued at $429,000 after purchasing an additional 7,500 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.