Affirm (NASDAQ:AFRM) Trading 4.9% Higher – Should You Buy?

Affirm Holdings, Inc. (NASDAQ:AFRM) rose 4.9% during mid-day trading on Thursday . The stock traded as high as $67.35 and last traded at $66.42. Approximately 1,893,029 shares were traded during trading, a decline of 79% from the average daily volume of 8,995,360 shares. The stock had previously closed at $63.34.

Wall Street Analyst Weigh In

Several research analysts have commented on the stock. Morgan Stanley upgraded shares of Affirm from an “underweight” rating to an “equal weight” rating and raised their target price for the stock from $22.00 to $37.00 in a report on Wednesday, October 9th. The Goldman Sachs Group lifted their price objective on shares of Affirm from $57.00 to $78.00 and gave the stock a “buy” rating in a research report on Monday, December 2nd. Mizuho increased their target price on Affirm from $65.00 to $69.00 and gave the company an “outperform” rating in a report on Tuesday, November 19th. Barclays lifted their price target on Affirm from $64.00 to $75.00 and gave the company an “overweight” rating in a report on Monday, November 25th. Finally, Wells Fargo & Company increased their price objective on Affirm from $52.00 to $55.00 and gave the stock an “overweight” rating in a research note on Friday, November 8th. One equities research analyst has rated the stock with a sell rating, six have given a hold rating, ten have assigned a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, Affirm has a consensus rating of “Moderate Buy” and an average price target of $60.94.

Affirm Trading Up 4.2 %

The business has a 50-day moving average of $57.45 and a two-hundred day moving average of $41.90. The company has a quick ratio of 12.60, a current ratio of 12.60 and a debt-to-equity ratio of 2.50. The firm has a market capitalization of $20.61 billion, a price-to-earnings ratio of -46.23 and a beta of 3.66.

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

Insider Transactions at Affirm

In related news, Director Noel Bertram Watson sold 2,500 shares of Affirm 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 transaction, the director now owns 41,497 shares of the company’s stock, valued at $2,989,858.85. This trade represents a 5.68 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, COO Michael Linford sold 400,000 shares of Affirm stock in a transaction on Thursday, December 12th. The stock was sold at an average price of $68.99, for a total transaction of $27,596,000.00. Following the transaction, the chief operating officer now directly owns 85,420 shares in the company, valued at approximately $5,893,125.80. This represents a 82.40 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 1,300,851 shares of company stock worth $84,875,518 over the last 90 days. 12.41% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. Ridgewood Investments LLC acquired a new stake in shares of Affirm in the second quarter valued at approximately $27,000. ORG Wealth Partners LLC acquired a new stake in Affirm in the 3rd quarter valued at $29,000. Allspring Global Investments Holdings LLC increased its position in Affirm by 82.4% during the second quarter. Allspring Global Investments Holdings LLC now owns 1,195 shares of the company’s stock worth $36,000 after buying an additional 540 shares during the last quarter. Advisors Asset Management Inc. raised its stake in Affirm by 168.2% in the third quarter. Advisors Asset Management Inc. now owns 1,070 shares of the company’s stock valued at $44,000 after buying an additional 671 shares during the period. Finally, Venturi Wealth Management LLC lifted its position in shares of Affirm by 200.5% in the third quarter. Venturi Wealth Management LLC now owns 1,097 shares of the company’s stock valued at $45,000 after buying an additional 732 shares during the last quarter. Institutional investors 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.