Figma Shares Plummet as Founder Files to Sell 3M Restricted Shares, Trading Volume Ranks 337th in U.S.

Market Snapshot

On November 18, 2025, , marking its second consecutive day of negative performance. , , which ranked it 337th in daily dollar volume among U.S. equities. The reduced liquidity and downward price movement suggest a period of consolidation or investor caution, potentially linked to recent developments in the company’s ownership structure.

Key Drivers

The most significant development influencing Figma’s stock on November 18 was the filing of a Form 144 by Dylan Field, the company’s Chairman of the Board. This regulatory filing, submitted to the SEC on November 17, 2025, . While such filings are a routine part of securities law, they often trigger investor scrutiny as they indicate an insider’s intent to liquidate holdings, which can signal either personal financial needs or a reassessment of the stock’s value.

Restricted stock sales are inherently subject to market dynamics, as the permitted sale period introduces potential downward pressure. , assuming a fully diluted float—could amplify market sensitivity. Historical precedents show that large insider sales, particularly by high-ranking executives, often lead to short-term volatility as traders anticipate increased supply in the market. However, the absence of additional disclosures, such as earnings guidance or strategic announcements, means the immediate impact remains tied to the perceived credibility of the insider’s actions.

The choice of Morgan Stanley as the broker also merits attention. As a major institutional player, the firm’s involvement suggests a structured approach to the sale, potentially mitigating abrupt price dislocations. That said, the timing of the filing—just one day before the stock’s decline—raises questions about whether the news influenced trading behavior. While the SEC filing itself is not a sell recommendation, its public availability may have prompted algorithmic trading strategies to adjust positions ahead of the 90-day window.

Importantly, the filing does not inherently reflect a lack of confidence in Figma’s business prospects. Restricted shares are often held for long-term strategic reasons, and their sale could indicate a shift in the insider’s personal portfolio management rather than a bearish outlook. Nevertheless, the market’s reaction underscores the heightened sensitivity to liquidity events in growth stocks, particularly those in the software sector, where valuations are often tied to speculative momentum.

In the absence of broader macroeconomic or industry-specific catalysts, . If the shares are offloaded gradually, the impact may remain contained. A rapid or concentrated sale, however, could exacerbate downward trends, especially if broader market sentiment toward tech stocks remains fragile. Investors will closely monitor subsequent filings and trading patterns to gauge the full implications of this liquidity event.