Figma (NYSE:FIG) Trading 5.4% Higher – Still a Buy?

Figma, Inc. (NYSE:FIG) traded up 5.4% during mid-day trading on Thursday . The company traded as high as $22.42 and last traded at $22.2380. 5,097,829 shares changed hands during trading, a decline of 65% from the average session volume of 14,411,049 shares. The stock had previously closed at $21.09.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on FIG shares. Piper Sandler reiterated an “overweight” rating and issued a $35.00 price target on shares of Figma in a report on Thursday, February 19th. Wall Street Zen upgraded Figma from a “sell” rating to a “hold” rating in a report on Sunday, February 8th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Figma in a research report on Monday, December 29th. Barclays upgraded Figma to a “neutral” rating in a research note on Thursday, January 8th. Finally, Stifel Nicolaus decreased their price target on Figma from $40.00 to $30.00 and set a “hold” rating on the stock in a research note on Thursday, February 19th. Four equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $43.25.

Figma Stock Down 8.8%

The company has a market cap of $8.91 billion and a PE ratio of -6.47. The stock’s 50 day simple moving average is $25.94 and its two-hundred day simple moving average is $38.66.

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

Insider Activity

In other Figma news, CAO Tyler Herb sold 1,678 shares of the company’s stock in a transaction dated Tuesday, March 3rd. The stock was sold at an average price of $28.47, for a total transaction of $47,772.66. Following the completion of the sale, the chief accounting officer directly owned 188,913 shares in the company, valued at $5,378,353.11. This represents a 0.88% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Dylan Field sold 250,000 shares of the company’s stock in a transaction dated Thursday, February 26th. The stock was sold at an average price of $30.80, for a total value of $7,700,000.00. The disclosure for this sale is available in the SEC filing. Insiders have sold 1,616,377 shares of company stock valued at $49,751,858 in the last 90 days. 45.20% of the stock is owned by corporate insiders.

Institutional Trading of Figma

Institutional investors and hedge funds have recently bought and sold shares of the business. Alphabet Inc. acquired a new position in shares of Figma during the 3rd quarter valued at $11,182,000. Rit Capital Partners PLC purchased a new stake in Figma during the 3rd quarter worth $2,592,000. Sands Capital Management LLC acquired a new stake in Figma in the 3rd quarter valued at $11,762,000. Sumitomo Mitsui Trust Group Inc. purchased a new position in Figma in the third quarter valued at about $11,075,000. Finally, NZS Capital LLC purchased a new position in Figma in the third quarter valued at about $8,070,000.

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.