Figma's 0.38% Gain Defies 60.88% Volume Drop and Insider Selling Surge, Ranks 213th in Trading Activity

Market Snapshot

Figma (FIG) closed on November 10, 2025, with a 0.38% gain, despite a significant 60.88% decline in trading volume compared to the prior day, which totaled $0.56 billion. The stock ranked 213th in trading volume across the market, indicating reduced liquidity and investor activity. The modest price increase occurred against a backdrop of heavy insider selling, including filings by the CFO, officers, and shareholders, which may reflect strategic divestment rather than bearish sentiment.

Key Drivers

The most prominent factor influencing Figma’s performance was the surge in insider selling activity. On November 10, multiple insiders—ranging from the CFO to key officers and shareholders—filed Form 144 with the SEC to sell restricted shares, totaling over 382,000 shares. For instance, CFO Praveer Melwani filed to sell 14,532 shares, while Officer Brendan Mulligan and Officer Kris Rasmussen filed to sell 80,934 and 272,789 shares, respectively. These sales, executed through Morgan Stanley Smith Barney LLC under prearranged 10b5-1 plans, suggest preplanned liquidity events rather than reactive dumping. The sheer volume of shares tendered could have pressured the stock price, yet the 0.38% rise indicates mixed market interpretation of the activity.

Compounding the insider selling was a broader context of analyst caution. Figma received a consensus “Hold” rating from 11 research firms, with seven maintaining neutral stances, three advocating buys, and one recommending a sell. The average 12-month price target of $62.86 implies limited upside expectations. Notably, Wells Fargo and Royal Bank of Canada recently reduced their price targets, reflecting concerns about the stock’s valuation after a post-IPO decline. This analytical environment likely tempered investor enthusiasm, despite the company’s strong Q3 earnings report.

Figma’s earnings results, however, provided a counterbalance to the bearish signals. The company reported Q3 earnings of $0.10 per share, far exceeding the estimated loss of $1.56 per share, and achieved $274.17 million in revenue—a 38% year-over-year increase. The earnings beat, particularly in a high-growth tech sector, underscored the company’s operational resilience. However, the guidance for FY 2025 and Q4 2025 remained unspecified, leaving some uncertainty about future performance. This duality—strong short-term results versus cautious long-term expectations—may have contributed to the muted price response.

Institutional and insider ownership dynamics further contextualized the stock’s movement. Corporate insiders collectively own 45.20% of Figma, and recent insider sales, including 9,526 shares by General Counsel Brendan Mulligan and 26,741 shares by CRO Shaunt Voskanian, added to the perception of reduced insider confidence. Meanwhile, new institutional positions by firms like Whittier Trust Co. and Tripletail Wealth Management signaled tentative optimism, albeit at relatively small scale. The interplay of these factors—disproportionate insider selling, analyst caution, and earnings strength—created a mixed signals environment for traders.

The broader market context also played a role. Figma’s stock had previously experienced a 55% drop post-IPO, creating a narrative of a “wild ride” for investors. The recent 0.38% gain, while modest, represented a slight rebound from its 52-week low of $43.00. However, the stock remains significantly below its 52-week high of $142.92, reflecting ongoing challenges in sustaining post-IPO momentum. Analysts’ focus on sector performance and Figma’s 50-day moving average of $55.46 further highlighted the stock’s struggle to break out of a consolidation phase.

In summary, Figma’s November 10 performance was shaped by a confluence of insider divestment, mixed analyst sentiment, and earnings-driven optimism. The stock’s ability to rise despite heavy selling suggests temporary confidence in its fundamentals, but the lack of consensus among analysts and the broader market’s cautious stance indicate that sustained momentum remains elusive. Investors will likely continue to monitor insider activity and future earnings reports for clearer directional cues.