Figma Inc (NYSE:FIG) shares faced heavy selling pressure during regular trading hours on Monday after several analyst firms initiated coverage on the stock. Here’s what you need to know.
What To Know: Figma went public on the New York Stock Exchange at the end of July. The company’s stock more than tripled in its first day of public trading. Figma, which makes collaborative web-based software, priced its IPO at $33 before shares opened for trading at $85 and closed out the session around $115. The stock has largely trended lower since.
Several analysts initiated coverage on Figma this week with price targets suggesting the stock may be close to fully valued. Here’s a look at the latest analyst ratings for Figma.
- Wolfe Research analyst Alex Zukin initiated coverage on Figma with a Peer Perform rating.
- William Blair analyst Arjun Bhatia initiated coverage on Figma with an Outperform rating.
- Goldman Sachs analyst Kash Rangan initiated coverage on Figma with a Neutral rating and set a price target of $48.
- JPMorgan analyst Mark Murphy initiated coverage on Figma with a Neutral rating and set a price target of $65.
- RBC Capital analyst Rishi Jaluria initiated coverage on Figma with a Sector Perform and set a price target of $75.
- Morgan Stanley initiated coverage on Figma with an Equal-Weight and set a price target of $80.
- Wells Fargo analyst Michael Turrin initiated coverage on Figma with an Equal-Weight and set a price target of $82.
- BofA Securities initiated coverage on Figma with a Neutral rating and set a price target of $85
FIG Analysis: The market structure reflects lower highs and lower lows, confirming a bearish trend. Support is established at $69.61, the recent low, which may act as a critical level to watch. Resistance is seen at $75.70, the recent high, which needs to be broken for a bullish reversal.
The RSI is calculated at 30.12, indicating the stock is nearing oversold conditions. This could suggest a potential bounce if buying interest returns. MACD shows a bearish crossover, with the MACD line below the signal line, reinforcing the current downtrend.
Figma is due to report its first quarterly numbers as a public company after the market close on Sept. 3.
FIG Price Action: Figma shares closed Monday down 9% at $70.34, according to Benzinga Pro.
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