Affirm (NASDAQ:AFRM) Shares Gap Up – Here’s What Happened

Affirm Holdings, Inc. (NASDAQ:AFRM) shares gapped up prior to trading on Wednesday . The stock had previously closed at $55.35, but opened at $60.45. Affirm shares last traded at $60.04, with a volume of 2,609,707 shares trading hands.

Analysts Set New Price Targets

AFRM has been the subject of several recent analyst reports. Mizuho raised their target price on shares of Affirm from $65.00 to $69.00 and gave the company an “outperform” rating in a research note on Tuesday, November 19th. JMP Securities upgraded shares of Affirm from a “market perform” rating to an “outperform” rating and set a $78.00 price objective for the company in a research note on Friday, December 20th. JPMorgan Chase & Co. lifted their price objective on shares of Affirm from $56.00 to $74.00 and gave the stock an “overweight” rating in a research note on Monday, December 2nd. Barclays lifted their price objective on shares of Affirm from $64.00 to $75.00 and gave the stock an “overweight” rating in a research note on Monday, November 25th. Finally, Jefferies Financial Group upgraded shares of Affirm from a “hold” rating to a “buy” rating and lifted their price objective for the stock from $70.00 to $82.00 in a research note on Thursday, December 19th. One equities research analyst has rated the stock with a sell rating, six have given a hold rating, eleven have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, Affirm currently has an average rating of “Moderate Buy” and a consensus price target of $60.94.

Affirm Stock Up 5.1 %

The firm has a market cap of $18.27 billion, a PE ratio of -40.96 and a beta of 3.67. 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 business’s 50 day moving average price is $63.42 and its 200 day moving average price is $45.68.

Affirm (NASDAQ:AFRM) last announced its quarterly earnings data 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 quarter in the prior year, the firm posted ($0.57) earnings per share. On average, equities research analysts expect that Affirm Holdings, Inc. will post -0.53 earnings per share for the current year.

Insider Activity at Affirm

In other news, Director Noel Bertram Watson sold 2,500 shares of the firm’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 value of $180,125.00. Following the completion of the transaction, the director now owns 41,497 shares of the company’s stock, valued at approximately $2,989,858.85. This trade represents a 5.68 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO Robert O’hare sold 100,938 shares of the firm’s stock in a transaction that occurred on Monday, November 11th. The shares were sold at an average price of $55.00, for a total transaction of $5,551,590.00. The disclosure for this sale can be found here. Over the last quarter, insiders sold 1,323,478 shares of company stock valued at $86,285,371. 12.41% of the stock is owned by company insiders.

Institutional Trading of Affirm

Hedge funds have recently added to or reduced their stakes in the company. ORG Wealth Partners LLC acquired a new stake in Affirm in the third quarter valued at approximately $29,000. Advisors Asset Management Inc. grew its position in shares of Affirm by 168.2% during the third 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 last quarter. Venturi Wealth Management LLC grew its position in shares of Affirm by 200.5% during the third quarter. Venturi Wealth Management LLC now owns 1,097 shares of the company’s stock worth $45,000 after acquiring an additional 732 shares during the last quarter. Hanseatic Management Services Inc. purchased a new position in shares of Affirm during the third quarter worth approximately $65,000. Finally, Plato Investment Management Ltd grew its position in shares of Affirm by 70.7% during the second quarter. Plato Investment Management Ltd now owns 2,267 shares of the company’s stock worth $68,000 after acquiring an additional 939 shares during the last quarter. 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.