Figma’s Stock Presents a Puzzle for Investors

The recent performance of Figma's shares presents a complex picture for the market. On one hand, the software design company has delivered robust quarterly results that surpassed expectations. On the other, a wave of stock sales by its top executives has introduced a note of caution, creating a tug-of-war that has pressured the share price.

Adding to the market's uncertainty, several of Figma's senior leaders sold portions of their holdings in early December. These transactions, while often part of pre-arranged 10b5-1 plans for purposes like covering tax liabilities, are being closely scrutinized. Chief Technology Officer Kris Rasmussen divested shares worth more than $6.5 million on December 3. The company's General Counsel, Chief Accounting Officer, and Chief Financial Officer also reduced their positions. Such activity during a period of share price weakness is typically interpreted as a signal of management caution, contributing to investor unease.

Robust Fundamentals Contrast with Weak Trading

Figma's operational performance for Q3 2025 was notably strong. The company reported a profit of $0.10 per share, a significant positive swing from an anticipated loss of $1.56. Revenue demonstrated vigorous growth, climbing 38% year-over-year to reach $274.17 million. Despite these solid fundamentals, the equity has failed to respond positively. The stock is trading well below its 50-day moving average and has declined by over 28% in the past month. It is approaching its 52-week low, a stark contrast to its all-time high, which remains distant.

Should investors sell immediately? Or is it worth buying Figma?

Analyst Community Maintains a Cautious Stance

Market experts reflect the prevailing ambiguity in their assessments. The average consensus rating currently stands at "Hold," accompanied by a price target near $63. Following the earnings release, Goldman Sachs raised its target to $54 but maintained a neutral stance. Morgan Stanley had previously adjusted its outlook in September, lowering its target from $80 to $70. These evaluations suggest potential upside from current levels but simultaneously underscore the widespread hesitancy among researchers.

The coming period will be critical in determining whether Figma's underlying business strength can ultimately restore investor confidence or if concerns regarding insider transactions and technical weakness will continue to dominate market sentiment.