Affirm (NASDAQ:AFRM) Shares Gap Down – What’s Next?

Affirm Holdings, Inc. (NASDAQ:AFRM) gapped down before the market opened on Tuesday . The stock had previously closed at $72.86, but opened at $70.24. Affirm shares last traded at $68.78, with a volume of 1,980,471 shares trading hands.

Analyst Ratings Changes

AFRM has been the topic of a number of research analyst reports. Needham & Company LLC reiterated a “hold” rating on shares of Affirm in a report on Friday, September 6th. Barclays lifted their target price on Affirm from $64.00 to $75.00 and gave the company an “overweight” rating in a report on Monday, November 25th. Bank of America upped their price target on Affirm from $50.00 to $74.00 and gave the stock a “buy” rating in a research note on Friday, November 22nd. Royal Bank of Canada reiterated a “sector perform” rating and set a $46.00 target price on shares of Affirm in a report on Friday, October 4th. Finally, Mizuho raised their price target on shares of Affirm from $65.00 to $69.00 and gave the company an “outperform” rating in a report on Tuesday, November 19th. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating and nine have given a buy rating to the company’s stock. According to MarketBeat, Affirm presently has a consensus rating of “Hold” and an average price target of $59.80.

Affirm Trading Down 10.7 %

The company has a debt-to-equity ratio of 2.50, a current ratio of 12.60 and a quick ratio of 12.60. The firm’s fifty day moving average price is $56.66 and its 200-day moving average price is $41.50. The company has a market cap of $19.89 billion, a price-to-earnings ratio of -44.61 and a beta of 3.66.

Affirm (NASDAQ:AFRM) last posted its earnings results on Thursday, November 7th. The company reported ($0.31) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.36) by $0.05. Affirm had a negative net margin of 17.67% and a negative return on equity of 12.57%. The firm had revenue of $698.48 million during the quarter, compared to analyst estimates of $661.39 million. During the same period in the previous year, the business posted ($0.57) EPS. On average, equities analysts expect that Affirm Holdings, Inc. will post -0.53 EPS for the current fiscal year.

Insider Activity at Affirm

In other news, CFO Robert O’hare sold 100,938 shares of Affirm stock in a transaction on Monday, November 11th. The stock was sold at an average price of $55.00, for a total transaction of $5,551,590.00. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Noel Bertram Watson sold 2,500 shares of the company’s stock in a transaction that occurred on Monday, December 16th. The shares were sold at an average price of $72.05, for a total transaction of $180,125.00. Following the completion of the transaction, the director now owns 41,497 shares in the company, valued at approximately $2,989,858.85. This represents a 5.68 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 1,300,851 shares of company stock worth $84,875,518 in the last three months. 12.41% of the stock is owned by company insiders.

Institutional Investors Weigh In On Affirm

Institutional investors and hedge funds have recently modified their holdings of the business. KBC Group NV increased its position in shares of Affirm by 3.6% during the third quarter. KBC Group NV now owns 6,331 shares of the company’s stock valued at $258,000 after purchasing an additional 222 shares during the period. CIBC Asset Management Inc increased its holdings in Affirm by 3.2% in the 3rd quarter. CIBC Asset Management Inc now owns 7,520 shares of the company’s stock valued at $307,000 after buying an additional 233 shares during the period. Allspring Global Investments Holdings LLC raised its stake in shares of Affirm by 82.4% in the 2nd quarter. Allspring Global Investments Holdings LLC now owns 1,195 shares of the company’s stock valued at $36,000 after buying an additional 540 shares in the last quarter. Myecfo LLC raised its stake in shares of Affirm by 5.0% in the 3rd quarter. Myecfo LLC now owns 12,260 shares of the company’s stock valued at $500,000 after buying an additional 589 shares in the last quarter. Finally, Advisors Asset Management Inc. lifted its holdings in shares of Affirm by 168.2% during the 3rd quarter. Advisors Asset Management Inc. now owns 1,070 shares of the company’s stock worth $44,000 after acquiring an additional 671 shares during the period. Institutional investors and hedge funds own 69.29% of the company’s stock.

About Affirm

Affirm Holdings, Inc operates a platform for digital and mobile-first commerce in the United States, Canada, and internationally. The company's platform includes point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app. Its commerce platform, agreements with originating banks, and capital markets partners enables consumers to pay for a purchase over time with terms ranging up to 60 months.