TLDR
- Figma CFO Praveer Melwani sold 53,624 shares between November 3-12, including 14,532 shares on November 10 at $43.47, totaling about $2.42 million in sales.
- CRO Shaunt Voskanian sold 403,335 shares on November 10 at $43.39 per share, reducing his stake by nearly 20% in a transaction worth approximately $17.5 million.
- Figma stock dropped 7.7% to $40.60, trading near its 12-month low of $40.02, down from a high of $142.92.
- The company beat earnings expectations with $0.10 EPS versus a consensus estimate of -$1.56, while revenue reached $274.17 million, up 38% year-over-year.
- Multiple institutional investors initiated large positions in Q3, including Baillie Gifford with $154.2 million and SurgoCap Partners with $120.2 million.
Figma executives conducted major stock sales in early November while shares traded near their lowest point in a year. The timing of these transactions comes as the design software company navigates a challenging post-IPO period.
CFO Praveer Melwani sold 53,624 shares between November 3 and November 12. The largest single transaction occurred on November 10 when he sold 14,532 shares at an average price of $43.47. This sale alone generated $631,706.
Melwani made three other transactions during this period. On November 3, he sold 16,092 shares at $48.17 per share for $775,151. On November 10, he sold another 13,000 shares at $43.46, bringing in $564,980. His final transaction came on November 12 when he sold 10,000 shares at $45.00 per share for $450,000.
After completing these sales, Melwani still holds 1,622,918 shares valued at roughly $70.55 million. The transactions represent a 0.89% reduction in his overall stake.
The bigger sale came from CRO Shaunt Voskanian. He sold 403,335 shares on November 10 at an average price of $43.39 per share. The transaction was worth approximately $17.5 million.
Voskanian also made an earlier sale on November 3, selling 26,741 shares at $48.17 per share for $1.28 million. Following these sales, he directly owns 1,617,326 shares valued at about $70.2 million. His stake decreased by nearly 20%.
Stock Price Pressure
Figma shares fell 7.7% on Thursday to $40.60. Trading volume reached 10,410,183 shares, exceeding the average volume of 9,761,726 shares.
The stock is trading near its 12-month low of $40.02. This represents a steep decline from its 12-month high of $142.92. The company’s 50-day moving average stands at $53.76, well above the current trading price.
The market has given Figma a consensus “Hold” rating. Analysts have set an average price target of $62.86, which would represent a gain of about 55% from current levels.
Strong Earnings Performance
The insider sales followed a better-than-expected earnings report released on November 5. Figma reported earnings per share of $0.10 for the quarter. This beat the consensus estimate of -$1.56 by $1.66.
Revenue came in at $274.17 million for the quarter. This represents a 38% increase compared to the same period last year. In the prior year quarter, the company posted $0.04 in earnings per share.
Analysts have adjusted their ratings in recent months. Goldman Sachs raised its price target from $49.00 to $54.00 on November 7, maintaining a neutral rating. Bank of America lowered its target from $85.00 to $69.00 in September but kept a buy rating.
Morgan Stanley cut its price target from $80.00 to $70.00 with an equal weight rating. Royal Bank of Canada reduced its target from $75.00 to $65.00. Weiss Ratings assigned a sell rating in late October.
Three analysts have buy ratings on the stock. Seven have assigned hold ratings. One analyst has issued a sell rating.
Institutional Investment Activity
Large institutional investors opened positions in Figma during the third quarter. Baillie Gifford acquired a new stake worth $154.24 million. SurgoCap Partners purchased shares valued at $120.21 million.
Capital International Investors bought a stake worth $61.92 million. Capital Research Global Investors acquired shares valued at $41.84 million. Marshall Wace purchased a position worth $40.40 million.
Smaller institutional investors also entered positions. US Bancorp bought shares worth $31,000. Montag A & Associates acquired a position valued at $33,000. SOA Wealth Advisors purchased a $39,000 stake.
The insider sales occurred between November 3 and November 12, with the stock currently trading at $40.60 per share.
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