Figma (NYSE:FIG) Trading 7.8% Higher – Should You Buy?

Shares of Figma, Inc. (NYSE:FIG) traded up 7.8% on Monday . The company traded as high as $25.35 and last traded at $25.1140. Approximately 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.

Wall Street Analyst Weigh In

FIG has been the subject of several research analyst reports. JPMorgan Chase & Co. reduced their price objective on Figma from $45.00 to $42.00 and set a “neutral” rating for the company in a research note on Friday, May 15th. Weiss Ratings reissued a “sell (e+)” rating on shares of Figma in a research report on Tuesday, May 19th. Morgan Stanley set a $33.00 price objective on shares of Figma in a research report on Thursday. Wells Fargo & Company dropped their price objective on shares of Figma from $42.00 to $36.00 and set an “overweight” rating on the stock in a research note on Friday, June 26th. Finally, Bank of America started 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. Five research 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 data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $32.22.

Figma Trading Up 9.0%

The firm has a market cap of $11.55 billion and a P/E ratio of -6.99. The business’s fifty day moving average price is $21.70 and its two-hundred day moving average price is $22.72.

Figma (NYSE:FIG) last issued its quarterly earnings data 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. The firm had revenue of $370.08 million during the quarter. Figma had a negative net margin of 123.15% and a negative return on equity of 100.03%. The company’s revenue for the quarter was up 48.2% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.09 earnings per share. Research analysts predict that Figma, Inc. will post -0.79 EPS for the current fiscal year.

Insider Activity

In other Figma news, General Counsel Brendan Mulligan sold 18,213 shares of the stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $25.00, for a total transaction of $455,325.00. Following the transaction, the general counsel owned 951,571 shares in the company, valued at $23,789,275. This trade represents a 1.88% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Tyler Herb sold 1,536 shares of Figma stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $26.00, for a total transaction of $39,936.00. Following the completion of the transaction, the chief accounting officer directly owned 257,189 shares in the company, valued at approximately $6,686,914. This represents a 0.59% decrease in their position. The disclosure for this sale is available in the SEC filing. 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. Over the last ninety days, insiders have sold 1,675,578 shares of company stock valued at $41,729,080. Insiders own 32.26% of the company’s stock.

Institutional Investors Weigh In On Figma

Hedge funds have recently bought and sold shares of the company. Greylock XIV GP LLC acquired a new position in shares of Figma during the 2nd quarter worth about $1,056,824,403,000. Fluent Financial LLC acquired a new stake in Figma in the 2nd quarter valued at approximately $765,000. Valeo Financial Advisors LLC bought a new position in Figma in the 2nd quarter worth approximately $203,000. Parallel Advisors LLC lifted its holdings in shares of Figma by 3,890.0% during the first quarter. Parallel Advisors LLC now owns 1,197 shares of the company’s stock worth $25,000 after buying an additional 1,167 shares during the last quarter. Finally, J. Derek Lewis & Associates Inc. lifted its holdings in shares of Figma by 58.6% during the first quarter. J. Derek Lewis & Associates Inc. now owns 20,300 shares of the company’s stock worth $429,000 after buying an additional 7,500 shares during 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.