Figma (NYSE:FIG) Trading 11.1% Higher – Should You Buy?

Shares of Figma, Inc. (NYSE:FIG) rose 11.1% on Tuesday . The company traded as high as $24.77 and last traded at $24.59. Approximately 10,589,921 shares were traded during trading, an increase of 0% from the average daily volume of 10,572,150 shares. The stock had previously closed at $22.13.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on FIG shares. The Goldman Sachs Group began coverage on Figma in a research report on Monday, January 12th. They set a “neutral” rating and a $40.00 target price for the company. Morgan Stanley cut their target price on shares of Figma from $65.00 to $48.00 and set an “equal weight” rating on the stock in a research report on Thursday, January 15th. Weiss Ratings reiterated a “sell (e+)” rating on shares of Figma in a research report on Monday, December 29th. Wall Street Zen raised shares of Figma from a “sell” rating to a “hold” rating in a research note on Sunday. Finally, Wells Fargo & Company raised shares of Figma from an “equal weight” rating to an “overweight” rating and set a $52.00 price target on the stock in a research report on Thursday, January 8th. Four research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Hold” and an average target price of $47.75.

Figma Trading Up 8.7%

The business’s 50 day simple moving average is $33.48. The firm has a market cap of $10.01 billion and a price-to-earnings ratio of -8.98.

Insider Activity

In related news, CTO Kris Rasmussen sold 74,305 shares of Figma stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $24.86, for a total transaction of $1,847,222.30. Following the sale, the chief technology officer directly owned 10,624,343 shares in the company, valued at approximately $264,121,166.98. This trade represents a 0.69% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Praveer Melwani sold 16,247 shares of the stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $24.86, for a total value of $403,900.42. Following the transaction, the chief financial officer directly owned 1,550,298 shares of the company’s stock, valued at approximately $38,540,408.28. This trade represents a 1.04% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 4,657,094 shares of company stock valued at $169,493,034.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. SC US Ttgp LTD. bought a new position in shares of Figma during the 3rd quarter valued at $1,310,305,000. ICONIQ Capital LLC bought a new position in shares of Figma in the third quarter worth about $1,108,879,000. a16z Capital Management L.L.C. purchased a new stake in Figma in the 3rd quarter worth approximately $842,687,000. Durable Capital Partners LP bought a new stake in Figma during the 3rd quarter worth approximately $278,510,000. Finally, Thrive Capital Management LLC bought a new position in shares of Figma in the third quarter worth approximately $228,034,000.

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.