Figma Director Reed Phillips Buys 554,000 Shares at Discount, Hinting at Undervalued Stock Amid Market Decline

Insider Buying Signals in a Volatile Market

The latest form‑4 filing from Reed Andrew Phillips, a director of Figma Inc., shows a sizeable purchase of 554,103 shares on 20 February 2026 at an average price of $25.90—well below the current market price of $27.43. Phillips’ cumulative holdings now top 1.47 million shares, an increase of roughly 30 % over his previous position. In the past week the board has also seen a flurry of transactions: a 42,362‑share buy the same day and a 870,387‑share buy the next day, suggesting a deliberate, staged accumulation rather than a one‑off opportunistic trade.

What the Move Means for Investors

For equity holders, the director’s activity is a bullish micro‑signal amid a broader decline in the software sector. Figma’s share price has fallen 18.8 % over the past week, and the market cap sits at $13.6 billion with a negative P/E of –7.03, a stark reminder of the valuation gap that investors still need to bridge. Phillips’ purchases at a discount to the closing price indicate confidence that the stock is undervalued in light of recent fourth‑quarter revenue growth and a projected full‑year revenue exceeding $1 billion. If the trend continues, the cumulative insider stake—over 10 % of outstanding shares—could exert a stabilizing influence and potentially lift the stock once the broader market sentiment improves.

Contextualizing the Broader Insider Landscape

The insider activity snapshot shows a mix of selling by senior executives—chief accounting officer Herb Tyler and chief technology officer Kris Rasmussen have each sold over 300,000 shares in the past month—yet the net flow is still negative. In contrast, Phillips’ buying stands out as the only significant net positive. This divergence may suggest that while the executive team is liquidating for diversification or personal reasons, the board remains optimistic about Figma’s long‑term prospects. For investors, the contrast underscores the importance of looking beyond headline transactions and assessing the intent behind each trade.

Future Outlook for Figma

Figma’s recent earnings beat and analyst upgrades—Piper Sandler’s overweight rating and fresh coverage from other research houses—provide a supportive backdrop. The company’s market cap, while large, is still far below its 52‑week high of $142.92, indicating upside potential if the company can sustain growth in its cloud‑based design platform. Insider buying, combined with positive buzz (108 % intensity) and a strong social‑media sentiment (+70), signals that the market is slowly warming to Figma’s narrative. If the company can translate revenue momentum into profitability and maintain its competitive edge, the stock may realign with its historical valuation multiples. For now, the best takeaway for investors is to monitor Phillips’ position for further accumulation, as this could foreshadow a broader institutional re‑entry into a fundamentally sound but temporarily under‑priced play.