Figma (NYSE:FIG) Stock Price Down 4.2% – What’s Next?

Figma, Inc. (NYSE:FIG) dropped 4.2% on Wednesday . The company traded as low as $24.02 and last traded at $23.8250. Approximately 2,482,915 shares changed hands 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.

Wall Street Analysts Forecast Growth

FIG has been the topic of several recent research reports. Wells Fargo & Company reduced their price target on Figma from $42.00 to $36.00 and set an “overweight” rating on the stock in a research report on Friday, June 26th. Stifel Nicolaus set a $25.00 target price on shares of Figma in a report on Friday, May 15th. Morgan Stanley set a $33.00 price target on shares of Figma in a report on Thursday, August 6th. Piper Sandler reissued an “overweight” rating and set a $30.00 price target on shares of Figma in a research report on Thursday, June 25th. Finally, Royal Bank Of Canada reissued a “sector perform” rating on shares of Figma in a report on Thursday, August 6th. Five investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $32.22.

Figma Stock Performance

The stock has a market capitalization of $10.82 billion and a P/E ratio of -6.53. The stock has a 50-day moving average price of $21.68 and a two-hundred day moving average price of $22.69.

Figma (NYSE:FIG) last announced 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 company had revenue of $370.08 million during the quarter. During the same quarter in the prior year, the company earned $0.09 EPS. Figma’s revenue was up 48.2% compared to the same quarter last year. Equities analysts anticipate that Figma, Inc. will post -0.79 earnings per share for the current fiscal year.

Insider Transactions at Figma

In other news, CFO Praveer Melwani sold 40,000 shares of Figma stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $26.63, for a total transaction of $1,065,200.00. Following the sale, the chief financial officer owned 1,674,544 shares of the company’s stock, valued at approximately $44,593,106.72. The trade was a 2.33% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Tyler Herb sold 1,536 shares of the business’s stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $26.00, for a total transaction of $39,936.00. Following the transaction, the chief accounting officer owned 257,189 shares in the company, valued at $6,686,914. This represents a 0.59% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 1,675,578 shares of company stock worth $41,729,080. 32.26% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Gladstone Capital Management LLP raised its holdings in Figma by 2.9% in the fourth quarter. Gladstone Capital Management LLP now owns 17,081 shares of the company’s stock worth $638,000 after purchasing an additional 481 shares in the last quarter. NewEdge Advisors LLC bought a new stake in shares of Figma during the 3rd quarter valued at $26,000. Wilmington Savings Fund Society FSB purchased a new stake in shares of Figma in the 3rd quarter worth about $27,000. Charles Schwab Investment Management Inc. increased its stake in shares of Figma by 3.8% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 15,212 shares of the company’s stock worth $568,000 after acquiring an additional 559 shares in the last quarter. Finally, Sunbelt Securities Inc. purchased a new position in Figma during the 3rd quarter valued at about $30,000.

Figma Company Profile

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.