Figma Inc (NYSE:FIG) shares are plunging on Tuesday after Piper Sandler lowered its price target on the stock. Here’s what you should know.
- Figma stock is showing notable weakness. What’s pressuring FIG stock?
Piper Sandler Slashes FIG Price Target
Piper Sandler analyst Hannah Rudoff maintained an Overweight rating on Figma but lowered the price target from $70 to $35, representing a 50% reduction.
The analyst update comes as software names have faced heavy selling pressure in recent sessions as worries mount surrounding earnings. Figma is due to report its fourth-quarter results on Feb. 18.
Technicals Point To Bearish Trend
Figma’s stock is currently trading 32.7% below its 20-day simple moving average (SMA) and 51.8% below its 100-day SMA, indicating a bearish trend. Over the past 12 months, shares have decreased by 2.52%, and they are currently positioned closer to their 52-week lows than highs.
The RSI is at 24.11, which is considered oversold, suggesting potential for a rebound if buying interest returns. Meanwhile, MACD is below its signal line, indicating bearish pressure on the stock.
The combination of oversold RSI and bearish MACD suggests mixed momentum, indicating that while the stock is oversold, the overall trend remains negative.
- Key Resistance: $22.00
- Key Support: $18.50
Other Recent Analyst Actions
Similarly to Piper Sandler, Morgan Stanley maintained an Equal-Weight rating on Jan. 15 but lowered the target to $48 from $65.
Meanwhile, Stifel initiated coverage on Figma on Jan. 8, assigning a Hold rating with a $40 target price. On the same day, Wells Fargo upgraded Figma to Overweight from Equal-Weight and set a target of $52. Earlier in the month, RBC Capital maintained a Sector Perform rating with a lower target of $38, down from $65.
FIG Price Action: Figma shares were down 12.17% at $21.08 at the time of publication on Tuesday. The stock is trading near its 52-week low of $18.41, according to Benzinga Pro.
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