Figma COO’s February Insider Sale Raises Questions as Stock Plummets 80% Year‑to‑Date

Insider Selling in a Down‑Trend: What Herb Tyler’s Move Means for Figma Investors

Herb Tyler, Figma’s Chief Accounting Officer, sold 956 shares on February 2 at an average price of $24.36 and an additional 1,276 shares at $25.24—totaling 2,232 shares in a single day. The transaction was executed as a “sell‑to‑cover” to meet tax withholding obligations on restricted stock units, a routine mechanism that can mask the true intent behind the sale. The shares were traded at prices only slightly above the market close of $21.39, indicating that the sale was not driven by a desire to cash out at a premium.

Contextualizing the Sale Amidst a Broader Sell‑Off

Figma’s share price has slumped 80 % year‑to‑date and dropped more than 25 % in the past week, with the company’s price‑to‑earnings ratio negative at –8.56. The market‑wide sell‑off in the software sector, amplified by concerns that AI‑driven design tools could erode Figma’s traditional revenue streams, has intensified investor caution. In this environment, an insider sale—even a routine “sell‑to‑cover”—can be interpreted as a signal that senior executives are not fully confident in the near‑term upside of the business.

What the Historical Pattern Tells Us

Tyler’s recent selling activity is not anomalous. In the past year he has sold roughly 20,000 shares in four separate transactions, typically at market‑aligned prices and often in blocks that match the vesting schedule of his restricted units. His last large sale on December 1 involved 3,073 shares at $35.45, a price that was well above the 2025 closing level, suggesting a willingness to liquidate when the share price is high. However, the consistent pattern of “sell‑to‑cover” transactions during vesting periods indicates that the current February sale is likely procedural rather than a signal of distress.

Investor Takeaway: Caution with a Caveat

For investors, the takeaway is twofold. First, the sale itself does not necessarily herald a decline in company fundamentals—Tyler’s trades are largely tax‑driven and reflect standard compensation structure. Second, the broader context—declining share price, negative P/E, and a bearish analyst sentiment—means that any insider sale can be amplified in the market’s perception. Watching Tyler’s future trades, particularly any off‑cycle or large block sales, will provide a clearer barometer of management’s confidence as the company navigates a challenging quarter.

A Quick Profile of Herb Tyler

Herb Tyler has served as Figma’s Chief Accounting Officer since 2022, overseeing the company’s financial reporting and internal controls. Over the past year he has sold an aggregate of ~20,000 shares, typically in block trades aligned with the vesting of his restricted stock units. His transactions are predominantly “sell‑to‑cover” and occur near the market price, suggesting a conservative approach to liquidity management rather than a pursuit of short‑term gains. As an accounting executive, Tyler’s primary focus remains on financial transparency and compliance, and his selling pattern reflects the standard practice for C‑suite executives with sizable equity grants.