Significant insider sales and pressure amid a broader selloff across software stocks have sharply weighed on Figma shares, which have plunged over 43% this year. However, they are now at an attractive price point, according to retail investor sentiment.
FIG trended among the top five tickers on Stocktwits early Wednesday, with its sentiment reading shifting to ‘bullish’ from ‘neutral’ the previous day.
“Figma looks oversold at this point,” said a user. “This is a healthy business that is both growing rapidly and historically profitable on a generally accepted accounting principles (GAAP) basis, and knowing how to use Figma is an in-demand skill.”
“Such a steal,” remarked another, citing its levers such as 95% retention in company’s products, and an expanding suit of AI-powered tools.
Bearish investors, on the other hand, raised concerns over the company’s weakening fundamentals and the design software developer potentially being rendered obsolete by broader AI advancements.
Figma shares have fallen for four straight sessions, cumulatively losing 30% in value. Meanwhile, Figma CEO Dylan Field sold $10.2 million worth of company shares last month, $18.8 million worth of stock in December, and $113 million worth of stock in November.
Figma will report its fourth quarter and full year 2025 results on Feb. 18. Analysts expect fourth quarter sales of $293.2 million and adjusted profit of $0.06 per share, according to Koyfin.
Figma competes closely with Adobe. The two dropped their plans for a mega merger in December 2023 after regulatory pushback.
Currently, seven out of 10 analysts recommend ‘Hold’ on FIG, while the remaining three recommend ‘Buy’ or higher, per Koyfin. Their average price target of $52.11 is more than twice the stock’s last closing price of $21.39
Notably, Figma shares have consistently declined since the company’s stock market debut in July last year, and are down 35% from the IPO price.
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