Figma (NYSE:FIG) Trading Down 8.9% on Insider Selling

Figma, Inc. (NYSE:FIG) fell 8.9% on Monday following insider selling activity. The company traded as low as $23.58 and last traded at $23.78. 5,655,337 shares traded hands during mid-day trading, a decline of 59% from the average session volume of 13,898,749 shares. The stock had previously closed at $26.09.

Specifically, General Counsel Brendan Mulligan sold 5,227 shares of the stock in a transaction on Thursday, February 19th. The shares were sold at an average price of $26.00, for a total value of $135,902.00. Following the sale, the general counsel owned 845,262 shares in the company, valued at $21,976,812. This represents a 0.61% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Tyler Herb sold 1,492 shares of Figma stock in a transaction dated Thursday, February 19th. The shares were sold at an average price of $26.00, for a total value of $38,792.00. Following the transaction, the chief accounting officer owned 194,434 shares of the company’s stock, valued at $5,055,284. The trade was a 0.76% decrease in their position. The disclosure for this sale is available in the SEC filing.

Analysts Set New Price Targets

Several research analysts recently weighed in on FIG shares. Barclays upgraded Figma to a “neutral” rating in a research report on Thursday, January 8th. Weiss Ratings restated a “sell (e+)” rating on shares of Figma in a research report on Monday, December 29th. Morgan Stanley set a $44.00 target price on shares of Figma in a research note on Thursday, February 19th. Wells Fargo & Company lowered their price target on shares of Figma from $52.00 to $42.00 and set an “overweight” rating on the stock in a report on Thursday, February 19th. Finally, Stifel Nicolaus cut their price objective on shares of Figma from $40.00 to $30.00 and set a “hold” rating for the company in a report on Thursday, February 19th. Four equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $43.25.

Key Stories Impacting Figma

Here are the key news stories impacting Figma this week:

• Positive Sentiment: Director Andrew Phillips Reed completed sizable disclosed purchases this week (totaling ~1.47M shares across filings at ~$24.30–$25.90, roughly $36M), a strong signal of insider confidence that likely attracted buyer interest. Read More.
• Positive Sentiment: ARK Invest (Cathie Wood) added to its FIG position (~$11.8M reported), bringing momentum from a well‑known growth manager and drawing attention from other active growth/AI investors. Read More.
• Positive Sentiment: Fundamentals provided a near‑term boost — Figma beat EPS estimates (reported $0.08 vs. consensus ~($0.20)) and posted revenue up ~40% year‑over‑year, reinforcing the growth thesis behind recent inflows. Read More.
• Neutral Sentiment: Coverage of Figma’s new AI pricing is spotlighting tradeoffs between driving usage vs. monetization; outcome is ambiguous — could accelerate revenue if adoption rises or compress usage if pricing is a headwind. Read More.
• Neutral Sentiment: Small, routine insider sales (e.g., General Counsel Brendan Mulligan sold ~5.2k shares) were reported; these appear immaterial relative to the large director buys but are noted by the market. Read More.
• Negative Sentiment: Short interest jumped ~47.5% in February to ~28.6M shares (≈6.5% of shares short) with a ~1.7 days‑to‑cover — the rise in bearish positioning raises volatility risk and could fuel short‑term pressure if sentiment flips.
• Negative Sentiment: Several analysts have trimmed price targets and the consensus remains a “Hold” with an average target in the mid‑$40s, which may limit upside for momentum traders despite recent buying. Read More.

Figma Price Performance

The business’s 50 day moving average price is $30.55 and its 200 day moving average price is $45.39. The firm has a market cap of $13.83 billion and a PE ratio of -10.05.

Figma (NYSE:FIG) last posted its quarterly earnings data on Wednesday, February 18th. The company reported $0.08 EPS for the quarter, topping the consensus estimate of ($0.20) by $0.28. The company had revenue of $303.78 million during the quarter. Figma had a negative return on equity of 97.03% and a negative net margin of 121.87%.The company’s quarterly revenue was up 40.1% on a year-over-year basis.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in FIG. Whittier Trust Co. of Nevada Inc. acquired a new stake in shares of Figma in the third quarter valued at about $26,000. NewEdge Advisors LLC acquired a new position in Figma during the third quarter worth about $26,000. DV Equities LLC acquired a new position in Figma during the fourth quarter worth about $26,000. Concord Wealth Partners raised its holdings in Figma by 1,446.8% in the 4th quarter. Concord Wealth Partners now owns 727 shares of the company’s stock valued at $27,000 after acquiring an additional 680 shares during the last quarter. Finally, Harbour Investments Inc. lifted its stake in Figma by 1,568.2% in the 4th quarter. Harbour Investments Inc. now owns 734 shares of the company’s stock worth $27,000 after purchasing an additional 690 shares in the last quarter.

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.