Figma (NYSE:FIG) Shares Up 7.8% – Should You Buy?

Figma, Inc. (NYSE:FIG)’s stock price shot up 7.8% during mid-day trading on Monday . The stock traded as high as $25.35 and last traded at $25.1140. 10,261,726 shares traded hands during trading, a decline of 44% from the average session volume of 18,293,557 shares. The stock had previously closed at $23.29.

Analyst Upgrades and Downgrades

FIG has been the topic of a number of recent research reports. Piper Sandler restated an “overweight” rating and issued a $30.00 target price on shares of Figma in a research note on Thursday, June 25th. Oppenheimer reissued a “market perform” rating on shares of Figma in a research note on Thursday, June 25th. Morgan Stanley set a $33.00 price objective on shares of Figma in a research report on Thursday, August 6th. Bank of America began coverage on shares of Figma in a research report on Tuesday, July 7th. They issued a “buy” rating and a $30.00 target price for the company. Finally, Citigroup increased their price target on shares of Figma from $35.00 to $37.00 and gave the stock a “buy” rating in a research note on Friday. Five equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $32.22.

Figma Stock Performance

The company has a market cap of $11.30 billion and a P/E ratio of -6.82. The firm has a 50 day moving average price of $21.68 and a 200-day moving average price of $22.69.

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

Insider Activity

In related news, CFO Praveer Melwani sold 381,288 shares of Figma stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $25.13, for a total value of $9,581,767.44. Following the transaction, the chief financial officer owned 1,725,716 shares in the company, valued at $43,367,243.08. This trade represents a 18.10% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CRO Shaunt Voskanian sold 87,510 shares of the company’s stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $23.01, for a total transaction of $2,013,605.10. Following the sale, the executive owned 1,781,380 shares of the company’s stock, valued at $40,989,553.80. This trade represents a 4.68% 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. In the last ninety days, insiders sold 1,675,578 shares of company stock worth $41,729,080. 32.26% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. Gladstone Capital Management LLP increased its holdings in shares of Figma by 2.9% during the 4th quarter. Gladstone Capital Management LLP now owns 17,081 shares of the company’s stock worth $638,000 after purchasing an additional 481 shares during the period. NewEdge Advisors LLC bought a new stake in shares of Figma in the third quarter valued at about $26,000. Wilmington Savings Fund Society FSB bought a new stake in shares of Figma in the third quarter valued at about $27,000. Charles Schwab Investment Management Inc. grew its position in Figma by 3.8% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 15,212 shares of the company’s stock worth $568,000 after buying an additional 559 shares in the last quarter. Finally, Sunbelt Securities Inc. acquired a new stake in Figma during the third quarter worth about $30,000.

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.