Figma (NYSE:FIG) Stock Price Down 7% – Here’s What Happened

Figma, Inc. (NYSE:FIG) traded down 7% during mid-day trading on Friday . The stock traded as low as $18.71 and last traded at $18.89. 25,658,070 shares changed hands during trading, an increase of 76% from the average session volume of 14,559,011 shares. The stock had previously closed at $20.32.

Figma News Summary

Here are the key news stories impacting Figma this week:

• Positive Sentiment: Figma reintroduced “Weave” with 20+ new AI-native design workflows, which could boost product differentiation and retention for designers. Reintroducing Figma Weave
• Positive Sentiment: Analyst coverage: Seeking Alpha issued a partial upgrade, signaling some investor confidence in the company’s growth trajectory and valuation setup. Figma: Is It Finally Time? Partially (Rating Upgrade)
• Positive Sentiment: Coverage suggests Figma is building a stronger creative presence in Europe, which may support international revenue growth and adoption. Is Figma Building A Stronger Creative Presence In Europe?
• Positive Sentiment: Recent intraday rallies were driven by short-term catalysts highlighted in press coverage, showing the stock remains responsive to news flow. This Propelled Figma’s (FIG) Double-Digit Gain Today
• Neutral Sentiment: Valuation pieces note recent share swings and wide valuation dispersion — useful context but not a direct catalyst. Investors are reassessing multiples after volatile moves. Assessing Figma (FIG) Valuation After Recent Share Price Swings
• Neutral Sentiment: Market commentary explains shifting bets around FIG amid volatility — highlights positioning changes but no single clear directional trigger. Why Market Bets Are Shifting Around Figma Amid Volatility?
• Neutral Sentiment: Pop-culture tie-ins (e.g., collectible figures) surfaced but are peripheral to core SaaS metrics and unlikely to move the stock materially. Figma figures of Bunny Garden 2 characters confirmed
• Negative Sentiment: Board shake-up: Anthropic’s CPO recently left Figma’s board amid reports he may offer a competing product — this raises governance and competitive-risk concerns. Anthropic CPO leaves Figma’s board
• Negative Sentiment: Broader competitive risk: reporting on Anthropic’s next AI model suggests potential disruption to design tools, amplifying investor fears about future competition in AI-assisted design. Anthropic’s Next AI Model Could Disrupt Design Tools
• Negative Sentiment: Public commentary (including on TV) has flagged the stock’s decline and negative sentiment, which can accelerate outflows and short-term selling pressure. Jim Cramer Addresses the Reason Behind Figma Stock’s Decline

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on FIG shares. The Goldman Sachs Group set a $35.00 price objective on Figma in a report on Thursday, February 19th. Wall Street Zen raised Figma from a “sell” rating to a “hold” rating in a report on Sunday, February 8th. Barclays raised Figma to a “neutral” rating in a report on Thursday, January 8th. Weiss Ratings reiterated a “sell (e+)” rating on shares of Figma in a research report on Monday, December 29th. Finally, Wells Fargo & Company reduced their target price on Figma from $52.00 to $42.00 and set an “overweight” rating for the company in a report on Thursday, February 19th. Four analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $43.25.

Figma Stock Down 6.7%

The stock’s fifty day simple moving average is $24.14 and its 200-day simple moving average is $35.27. The company has a market capitalization of $8.37 billion and a PE ratio of -6.08.

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

Insider Buying and Selling

In related news, General Counsel Brendan Mulligan sold 4,817 shares of the business’s stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $26.30, for a total value of $126,687.10. Following the sale, the general counsel directly owned 825,644 shares in the company, valued at $21,714,437.20. The trade was a 0.58% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CTO Kris Rasmussen sold 179,331 shares of the stock in a transaction dated Tuesday, March 3rd. The shares were sold at an average price of $29.80, for a total transaction of $5,344,063.80. Following the completion of the sale, the chief technology officer directly owned 10,169,178 shares in the company, valued at approximately $303,041,504.40. The trade was a 1.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 1,060,645 shares of company stock valued at $30,526,164 in the last three months. 45.20% of the stock is owned by insiders.

Institutional Trading of Figma

Several large investors have recently modified their holdings of FIG. Gladstone Capital Management LLP grew its holdings in Figma by 2.9% during the 4th quarter. Gladstone Capital Management LLP now owns 17,081 shares of the company’s stock valued at $638,000 after buying an additional 481 shares during the last quarter. Whittier Trust Co. of Nevada Inc. acquired a new position in shares of Figma in the third quarter worth $26,000. NewEdge Advisors LLC purchased a new stake in shares of Figma in the third quarter valued at $26,000. Wilmington Savings Fund Society FSB purchased a new stake in shares of Figma in the third quarter valued at $27,000. Finally, Charles Schwab Investment Management Inc. boosted its stake in shares of Figma by 3.8% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 15,212 shares of the company’s stock valued at $568,000 after acquiring an additional 559 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.