Affirm (NASDAQ:AFRM) Trading Down 4.5% After Analyst Downgrade

Affirm Holdings, Inc. (NASDAQ:AFRM) traded down 4.5% during trading on Tuesday after Barclays lowered their price target on the stock from $50.00 to $41.00. Barclays currently has an overweight rating on the stock. Affirm traded as low as $29.58 and last traded at $29.67. 903,594 shares traded hands during trading, a decline of 91% from the average session volume of 9,717,815 shares. The stock had previously closed at $31.06.

Other analysts also recently issued reports about the company. Morgan Stanley downgraded Affirm from an “equal weight” rating to an “underweight” rating and lifted their target price for the stock from $15.00 to $20.00 in a research report on Monday, December 18th. BMO Capital Markets boosted their price target on Affirm from $44.00 to $47.00 and gave the stock a “market perform” rating in a research report on Monday, February 12th. Royal Bank of Canada upped their price objective on Affirm from $26.00 to $50.00 and gave the stock a “sector perform” rating in a research note on Friday, February 9th. JPMorgan Chase & Co. lifted their target price on Affirm from $35.00 to $41.00 and gave the company a “neutral” rating in a research note on Friday, February 9th. Finally, Stephens increased their price target on shares of Affirm from $6.00 to $16.00 and gave the company an “underweight” rating in a research report on Friday, February 9th. Six investment analysts have rated the stock with a sell rating, nine have given a hold rating and three have issued a buy rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $27.86.

Insider Activity

In related news, Director Keith Rabois sold 9,276 shares of the firm’s stock in a transaction on Thursday, March 14th. The shares were sold at an average price of $34.39, for a total transaction of $319,001.64. Following the completion of the transaction, the director now owns 78,552 shares of the company’s stock, valued at $2,701,403.28. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Insiders own 13.05% of the company’s stock.

Institutional Investors Weigh In On Affirm

Several hedge funds have recently bought and sold shares of AFRM. Vanguard Group Inc. lifted its stake in shares of Affirm by 4.1% in the 4th quarter. Vanguard Group Inc. now owns 19,506,902 shares of the company’s stock valued at $958,569,000 after purchasing an additional 769,843 shares during the period. Capital World Investors raised its position in shares of Affirm by 1.2% in the fourth quarter. Capital World Investors now owns 19,002,021 shares of the company’s stock worth $933,759,000 after acquiring an additional 218,720 shares during the period. Price T Rowe Associates Inc. MD boosted its stake in shares of Affirm by 14.1% during the 2nd quarter. Price T Rowe Associates Inc. MD now owns 11,350,295 shares of the company’s stock worth $204,987,000 after acquiring an additional 1,404,278 shares in the last quarter. BlackRock Inc. grew its position in shares of Affirm by 4.9% during the 3rd quarter. BlackRock Inc. now owns 8,877,070 shares of the company’s stock valued at $166,533,000 after acquiring an additional 415,059 shares during the period. Finally, State Street Corp increased its stake in shares of Affirm by 9.8% in the 3rd quarter. State Street Corp now owns 3,920,885 shares of the company’s stock valued at $73,556,000 after purchasing an additional 349,071 shares in the last quarter. Hedge funds and other institutional investors own 69.29% of the company’s stock.

Affirm Stock Performance

The firm has a fifty day simple moving average of $36.73 and a 200 day simple moving average of $34.45. The company has a market capitalization of $9.47 billion, a price-to-earnings ratio of -12.40 and a beta of 3.57. The company has a debt-to-equity ratio of 2.35, a current ratio of 11.49 and a quick ratio of 11.49.

Affirm (NASDAQ:AFRM) last released its earnings results on Thursday, February 8th. The company reported ($0.20) EPS for the quarter, topping analysts’ consensus estimates of ($0.28) by $0.08. Affirm had a negative net margin of 39.19% and a negative return on equity of 25.10%. The business had revenue of $591.11 million during the quarter, compared to analysts’ expectations of $523.92 million. On average, analysts anticipate that Affirm Holdings, Inc. will post -2.45 earnings per share for the current fiscal year.

Affirm Company Profile

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.