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

Affirm Holdings, Inc. (NASDAQ:AFRM)’s stock price gapped down prior to trading on Monday . The stock had previously closed at $50.08, but opened at $46.51. Affirm shares last traded at $44.41, with a volume of 5,465,972 shares traded.

Wall Street Analysts Forecast Growth

AFRM has been the subject of several research reports. Royal Bank of Canada boosted their price target on shares of Affirm from $67.00 to $81.00 and gave the stock a “sector perform” rating in a research note on Friday, February 7th. The Goldman Sachs Group decreased their price objective on shares of Affirm from $90.00 to $56.00 and set a “buy” rating for the company in a research report on Tuesday. Barclays lifted their price objective on shares of Affirm from $75.00 to $85.00 and gave the stock an “overweight” rating in a research report on Monday, February 10th. Jefferies Financial Group raised 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 report on Thursday, December 19th. Finally, Morgan Stanley lifted their price objective on shares of Affirm from $39.00 to $55.00 and gave the stock an “equal weight” rating in a research report on Tuesday, January 28th. Nine investment analysts have rated the stock with a hold rating, ten have issued a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $68.24.

Affirm Stock Down 8.9 %

The business’s fifty day moving average price is $61.22 and its 200 day moving average price is $56.00. The company has a quick ratio of 11.26, a current ratio of 11.26 and a debt-to-equity ratio of 2.68. The firm has a market capitalization of $13.90 billion, a PE ratio of -67.23 and a beta of 3.63.

Affirm (NASDAQ:AFRM) last announced its earnings results on Thursday, February 6th. The company reported $0.23 EPS for the quarter, beating analysts’ consensus estimates of ($0.21) by $0.44. Affirm had a negative net margin of 7.10% and a negative return on equity of 7.25%. On average, equities research analysts forecast that Affirm Holdings, Inc. will post -0.18 earnings per share for the current fiscal year.

Insider Transactions at Affirm

In other news, Director Keith Rabois sold 16,086 shares of the business’s stock in a transaction dated Thursday, January 2nd. The shares were sold at an average price of $62.32, for a total transaction of $1,002,479.52. Following the transaction, the director now directly owns 93,694 shares in the company, valued at $5,839,010.08. The trade was a 14.65 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Robert O’hare sold 6,541 shares of the company’s stock in a transaction dated Thursday, January 2nd. The stock was sold at an average price of $62.28, for a total transaction of $407,373.48. Following the transaction, the chief financial officer now owns 2,963 shares in the company, valued at $184,535.64. The trade was a 68.82 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 59,801 shares of company stock worth $3,806,093 over the last ninety days. 12.41% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in AFRM. Oppenheimer Asset Management Inc. grew its position in Affirm by 10.8% during the third quarter. Oppenheimer Asset Management Inc. now owns 24,902 shares of the company’s stock worth $1,016,000 after buying an additional 2,432 shares during the period. Oppenheimer & Co. Inc. acquired a new position in Affirm during the third quarter worth about $1,419,000. KBC Group NV lifted its holdings in shares of Affirm by 3.6% in 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 in the last quarter. CIBC Asset Management Inc lifted its holdings in shares of Affirm by 3.2% in the third quarter. CIBC Asset Management Inc now owns 7,520 shares of the company’s stock valued at $307,000 after purchasing an additional 233 shares in the last quarter. Finally, Natixis Advisors LLC purchased a new stake in shares of Affirm in the third quarter valued at about $759,000. 69.29% of the stock is currently owned by institutional investors and hedge funds.

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.