Figma (NYSE:FIG) Shares Down 4.2% on Insider Selling

Figma, Inc. (NYSE:FIG) shares dropped 4.2% during mid-day trading on Wednesday following insider selling activity. The company traded as low as $24.02 and last traded at $23.8250. Approximately 2,482,915 shares traded hands during mid-day trading, a decline of 86% from the average session volume of 18,289,518 shares. The stock had previously closed at $24.87.

Specifically, major shareholder Ventures Vi (Jersey) Lp Index sold 12,475 shares of the company’s stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $25.39, for a total value of $316,740.25. Following the completion of the transaction, the insider owned 786,700 shares of the company’s stock, valued at $19,974,313. This represents a 1.56% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Daniel H. Rimer sold 12,475 shares of the company’s stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $25.39, for a total value of $316,740.25. Following the completion of the transaction, the director directly owned 786,700 shares of the company’s stock, valued at $19,974,313. This represents a 1.56% decrease in their position. The SEC filing for this sale provides additional information. In related news, CFO Praveer Melwani sold 40,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $26.63, for a total value of $1,065,200.00. Following the completion of the transaction, the chief financial officer owned 1,674,544 shares in the company, valued at $44,593,106.72. This trade represents a 2.33% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Ratings Changes

A number of equities research analysts have weighed in on the stock. JPMorgan Chase & Co. reduced their target price on shares of Figma from $45.00 to $42.00 and set a “neutral” rating on the stock in a report on Friday, May 15th. Piper Sandler reaffirmed an “overweight” rating and set a $30.00 price target on shares of Figma in a research note on Thursday, June 25th. Bank of America started coverage on shares of Figma in a report on Tuesday, July 7th. They set a “buy” rating and a $30.00 price target on the stock. Stifel Nicolaus set a $25.00 price objective on shares of Figma in a research note on Friday, May 15th. Finally, Oppenheimer restated a “market perform” rating on shares of Figma in a report on Thursday, June 25th. Five analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $32.22.

Figma Trading Up 11.3%

The business’s 50-day simple moving average is $21.78 and its two-hundred day simple moving average is $22.63. The firm has a market cap of $12.03 billion and a price-to-earnings ratio of -7.26.

Figma (NYSE:FIG) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $0.08 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.22) by $0.30. Figma had a negative net margin of 123.15% and a negative return on equity of 100.03%. The firm had revenue of $370.08 million for the quarter. During the same quarter last year, the firm posted $0.09 EPS. The firm’s revenue for the quarter was up 48.2% on a year-over-year basis. On average, analysts forecast that Figma, Inc. will post -0.79 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Figma

Hedge funds have recently bought and sold shares of the company. Parallel Advisors LLC boosted its position in Figma by 3,890.0% during the first quarter. Parallel Advisors LLC now owns 1,197 shares of the company’s stock valued at $25,000 after acquiring an additional 1,167 shares during the last quarter. NewEdge Advisors LLC bought a new position in shares of Figma in the 3rd quarter worth about $26,000. DV Equities LLC bought a new position in shares of Figma in the 4th quarter worth about $26,000. Concord Wealth Partners lifted its stake in shares of 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 purchasing an additional 680 shares during the period. Finally, Harbour Investments Inc. lifted its stake in shares of Figma by 1,568.2% in the 4th quarter. Harbour Investments Inc. now owns 734 shares of the company’s stock valued at $27,000 after purchasing an additional 690 shares during the period.

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.