Figma (NYSE:FIG) Shares Up 6% – Time to Buy?

Figma, Inc. (NYSE:FIG)’s stock price shot up 6% during trading on Monday . The stock traded as high as $22.23 and last traded at $22.3780. Approximately 3,768,707 shares changed hands during mid-day trading, a decline of 78% from the average daily volume of 17,197,531 shares. The stock had previously closed at $21.11.

Analysts Set New Price Targets

Several brokerages have recently issued reports on FIG. Wells Fargo & Company reduced their price objective on Figma from $42.00 to $36.00 and set an “overweight” rating on the stock in a research note on Friday, June 26th. JPMorgan Chase & Co. lowered their target price on Figma from $45.00 to $42.00 and set a “neutral” rating for the company in a research note on Friday, May 15th. Morgan Stanley reduced their price target on Figma from $44.00 to $38.00 and set an “equal weight” rating on the stock in a research report on Friday, May 15th. Royal Bank Of Canada decreased their price objective on Figma from $28.00 to $22.00 and set a “sector perform” rating for the company in a research note on Thursday, June 25th. Finally, Oppenheimer reissued a “market perform” rating on shares of Figma in a research report on Thursday, June 25th. Five investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $32.67.

Figma Stock Up 0.5%

The stock has a market cap of $10.59 billion and a PE ratio of -6.93. The firm has a fifty day moving average of $21.00 and a 200 day moving average of $24.25.

Figma (NYSE:FIG) last announced its quarterly earnings results on Thursday, May 14th. The company reported $0.10 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.17) by $0.27. The company had revenue of $333.44 million during the quarter. Figma had a negative return on equity of 98.51% and a negative net margin of 123.83%.The firm’s revenue for the quarter was up 46.1% on a year-over-year basis. On average, equities research analysts forecast that Figma, Inc. will post -0.8 EPS for the current fiscal year.

Insider Activity

In related news, CAO Tyler Herb sold 1,850 shares of the business’s stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $26.40, for a total transaction of $48,840.00. Following the completion of the sale, the chief accounting officer owned 263,435 shares in the company, valued at $6,954,684. The trade was a 0.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 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. Also, CTO Kris Rasmussen sold 327,046 shares of the stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $25.07, for a total transaction of $8,199,043.22. Following the completion of the transaction, the chief technology officer owned 9,771,529 shares in the company, valued at $244,972,232.03. This represents a 3.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 733,309 shares of company stock valued at $17,824,756 over the last 90 days. Insiders own 32.26% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. NewEdge Advisors LLC acquired a new position in Figma in the third quarter valued at $26,000. Wilmington Savings Fund Society FSB acquired a new stake in shares of Figma during the third quarter worth about $27,000. Sunbelt Securities Inc. acquired a new stake in shares of Figma during the third quarter worth about $30,000. US Bancorp DE purchased a new stake in shares of Figma in the 3rd quarter valued at about $31,000. Finally, CIBC Private Wealth Group LLC acquired a new stake in shares of Figma in the 3rd quarter valued at about $33,000.

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.