Affirm (NASDAQ:AFRM) Shares Down 14% – Here’s Why

Affirm Holdings, Inc. (NASDAQ:AFRM)’s share price fell 14% on Thursday . The company traded as low as $41.67 and last traded at $41.05. 1,608,142 shares changed hands during trading, a decline of 80% from the average session volume of 8,037,148 shares. The stock had previously closed at $47.75.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on AFRM. Susquehanna downgraded Affirm from a “positive” rating to a “neutral” rating and set a $57.00 price objective on the stock. in a research note on Tuesday, January 21st. JMP Securities boosted their target price on shares of Affirm from $78.00 to $85.00 and gave the company a “market outperform” rating in a research report on Friday, February 7th. Citizens Jmp upgraded shares of Affirm from a “hold” rating to a “strong-buy” rating in a report on Friday, December 20th. Needham & Company LLC reiterated a “hold” rating on shares of Affirm in a report on Friday, February 7th. Finally, Royal Bank of Canada boosted their target price on shares of Affirm from $67.00 to $81.00 and gave the stock a “sector perform” rating in a research report on Friday, February 7th. Eight equities research analysts have rated the stock with a hold rating, twelve have issued a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, Affirm presently has a consensus rating of “Moderate Buy” and an average price target of $69.76.

Affirm Price Performance

The business’s 50-day moving average price is $59.24 and its 200 day moving average price is $56.48. The company has a market capitalization of $12.47 billion, a P/E ratio of -60.32 and a beta of 3.63. The company has a quick ratio of 11.26, a current ratio of 11.26 and a debt-to-equity ratio of 2.68.

Affirm (NASDAQ:AFRM) last posted its earnings results on Thursday, February 6th. The company reported $0.23 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.21) by $0.44. Affirm had a negative net margin of 7.10% and a negative return on equity of 7.25%. Analysts anticipate that Affirm Holdings, Inc. will post -0.18 EPS for the current fiscal year.

Insiders Place Their Bets

In other Affirm news, Director Keith Rabois sold 16,086 shares of the stock in a transaction that occurred on Monday, February 3rd. The stock was sold at an average price of $60.12, for a total value of $967,090.32. Following the completion of the sale, the director now owns 77,608 shares in the company, valued at approximately $4,665,792.96. This trade represents a 17.17 % decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Christa S. Quarles sold 5,000 shares of the business’s stock in a transaction that occurred on Friday, February 14th. The shares were sold at an average price of $80.00, for a total value of $400,000.00. Following the transaction, the director now directly owns 137,325 shares in the company, valued at $10,986,000. This trade represents a 3.51 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 39,674 shares of company stock valued at $2,510,690 in the last ninety days. Company insiders own 12.41% of the company’s stock.

Institutional Investors Weigh In On Affirm

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Nordea Investment Management AB purchased a new stake in shares of Affirm in the 4th quarter worth about $6,380,000. Jacobs Levy Equity Management Inc. bought a new position in shares of Affirm during the third quarter valued at approximately $414,000. Integris Wealth Management LLC purchased a new position in shares of Affirm during the fourth quarter valued at approximately $750,000. Worldquant Millennium Advisors LLC purchased a new position in shares of Affirm during the third quarter valued at approximately $2,106,000. Finally, Quantinno Capital Management LP boosted its position in shares of Affirm by 77.5% in the 3rd quarter. Quantinno Capital Management LP now owns 90,169 shares of the company’s stock worth $3,681,000 after purchasing an additional 39,381 shares in the last quarter. 69.29% of the stock is owned by hedge funds and other institutional investors.

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.