Affirm (NASDAQ:AFRM) Trading Down 7.2% – Here’s What Happened

Affirm Holdings, Inc. (NASDAQ:AFRM) dropped 7.2% during trading on Monday . The stock traded as low as $77.27 and last traded at $75.9110. Approximately 2,144,668 shares were traded during trading, a decline of 43% from the average daily volume of 3,739,947 shares. The stock had previously closed at $81.80.

Analyst Ratings Changes

Several analysts recently issued reports on the stock. Rothschild & Co Redburn upgraded shares of Affirm from a “neutral” rating to a “buy” rating and boosted their target price for the company from $74.00 to $101.00 in a research report on Monday, October 6th. Evercore ISI reissued an “outperform” rating on shares of Affirm in a research report on Tuesday, December 16th. TD Cowen reduced their price objective on Affirm from $115.00 to $110.00 and set a “buy” rating for the company in a research note on Thursday. The Goldman Sachs Group decreased their target price on Affirm from $105.00 to $94.00 and set a “buy” rating on the stock in a report on Monday, October 13th. Finally, Wall Street Zen lowered Affirm from a “buy” rating to a “hold” rating in a report on Saturday, January 3rd. Two investment analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and eleven have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $89.17.

Affirm Stock Performance

The company has a quick ratio of 12.80, a current ratio of 12.80 and a debt-to-equity ratio of 2.40. The business has a 50 day moving average price of $72.28 and a two-hundred day moving average price of $74.23. The stock has a market cap of $25.21 billion, a P/E ratio of 114.01, a price-to-earnings-growth ratio of 3.71 and a beta of 3.57.

Affirm (NASDAQ:AFRM) last posted its quarterly earnings results on Thursday, November 6th. The company reported $0.23 EPS for the quarter, topping analysts’ consensus estimates of $0.11 by $0.12. Affirm had a return on equity of 7.75% and a net margin of 6.74%.The company had revenue of $933.34 million for the quarter, compared to analysts’ expectations of $881.83 million. During the same period in the previous year, the firm earned ($0.31) EPS. The firm’s revenue was up 33.6% compared to the same quarter last year. On average, sell-side analysts forecast that Affirm Holdings, Inc. will post -0.18 earnings per share for the current fiscal year.

Insider Buying and Selling at Affirm

In other Affirm news, CFO Robert O’hare sold 36,401 shares of the business’s stock in a transaction on Monday, January 5th. The shares were sold at an average price of $80.00, for a total value of $2,912,080.00. Following the sale, the chief financial officer owned 1,368 shares in the company, valued at $109,440. The trade was a 96.38% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Max R. Levchin sold 666,666 shares of the firm’s stock in a transaction dated Monday, January 5th. The shares were sold at an average price of $80.62, for a total value of $53,746,612.92. The disclosure for this sale is available in the SEC filing. Insiders have sold 711,256 shares of company stock valued at $57,231,923 over the last ninety days. 11.01% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Affirm

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Yousif Capital Management LLC grew its holdings in shares of Affirm by 5.1% in the third quarter. Yousif Capital Management LLC now owns 3,243 shares of the company’s stock valued at $237,000 after purchasing an additional 158 shares in the last quarter. Farther Finance Advisors LLC raised its stake in Affirm by 13.2% during the third quarter. Farther Finance Advisors LLC now owns 1,471 shares of the company’s stock valued at $108,000 after purchasing an additional 171 shares in the last quarter. Assetmark Inc. lifted its position in Affirm by 111.3% during the third quarter. Assetmark Inc. now owns 338 shares of the company’s stock valued at $25,000 after purchasing an additional 178 shares during the last quarter. GAMMA Investing LLC grew its stake in shares of Affirm by 4.4% in the 3rd quarter. GAMMA Investing LLC now owns 4,850 shares of the company’s stock worth $354,000 after buying an additional 206 shares in the last quarter. Finally, Apollon Wealth Management LLC increased its holdings in shares of Affirm by 3.5% in the 3rd quarter. Apollon Wealth Management LLC now owns 6,335 shares of the company’s stock worth $463,000 after buying an additional 212 shares during the last quarter. 69.29% of the stock is owned by institutional investors.

About Affirm

Affirm Holdings, Inc is a financial technology company that provides point-of-sale consumer lending and payments solutions for online and in-store purchases. Its core product is a buy-now-pay-later (BNPL) platform that enables consumers to split purchases into fixed, transparent installment loans with no hidden fees. Affirm offers a range of financing options through merchant integrations, a consumer-facing mobile app and virtual card capabilities, and tools for merchants to offer alternative payment methods at checkout.