Affirm (NASDAQ:AFRM) Shares Down 6.9% – Here’s Why

Affirm Holdings, Inc. (NASDAQ:AFRM)’s stock price dropped 6.9% during mid-day trading on Wednesday. The company traded as low as $69.83 and last traded at $66.8090. 315,223 shares were traded during trading, a decline of 94% from the average session volume of 5,277,127 shares. The stock had previously closed at $71.77.

Analyst Upgrades and Downgrades

Several research analysts have commented on AFRM shares. The Goldman Sachs Group lifted their price target on Affirm from $106.00 to $115.00 and gave the stock a “buy” rating in a research report on Monday, August 31st. Truist Financial raised their target price on shares of Affirm from $83.00 to $85.00 and gave the stock a “buy” rating in a research report on Thursday, September 3rd. UBS Group raised their target price on shares of Affirm from $82.00 to $90.00 and gave the stock a “neutral” rating in a research report on Friday, August 28th. Wells Fargo & Company lifted their target price on shares of Affirm from $89.00 to $96.00 and gave the company an “overweight” rating in a report on Wednesday, July 8th. Finally, Compass Point set a $100.00 price target on shares of Affirm in a research report on Friday, July 17th. Twenty-four equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $98.78.

Affirm Price Performance

The stock has a fifty day moving average of $73.81 and a two-hundred day moving average of $67.44. The stock has a market cap of $24.15 billion, a price-to-earnings ratio of 12.97, a price-to-earnings-growth ratio of 2.94 and a beta of 3.61. The company has a quick ratio of 11.80, a current ratio of 11.80 and a debt-to-equity ratio of 1.82.

Affirm (NASDAQ:AFRM) last released its earnings results on Thursday, August 27th. The company reported $4.62 EPS for the quarter, beating analysts’ consensus estimates of $0.35 by $4.27. Affirm had a return on equity of 47.91% and a net margin of 45.29%.The company had revenue of $1.07 billion during the quarter, compared to the consensus estimate of $1.11 billion. During the same quarter last year, the company earned $0.20 earnings per share. Affirm’s quarterly revenue was up 33.1% compared to the same quarter last year. On average, equities research analysts anticipate that Affirm Holdings, Inc. will post 1.87 earnings per share for the current year.

Insider Activity at Affirm

In related news, insider Katherine Adkins sold 41,664 shares of the business’s stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $75.53, for a total transaction of $3,146,881.92. Following the sale, the insider owned 152,439 shares of the company’s stock, valued at approximately $11,513,717.67. The trade was a 21.46% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Siphelele Jiyane sold 26,980 shares of the company’s stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $72.19, for a total transaction of $1,947,686.20. Following the transaction, the chief accounting officer owned 188,711 shares in the company, valued at $13,623,047.09. The trade was a 12.51% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 214,527 shares of company stock worth $16,974,716 over the last 90 days. Company insiders own 11.01% of the company’s stock.

Institutional Investors Weigh In On Affirm

Several institutional investors have recently modified their holdings of AFRM. Osbon Capital Management LLC purchased a new position in Affirm in the 4th quarter valued at approximately $49,000. Fideuram Intesa Sanpaolo Private Banking S.P.A. purchased a new stake in Affirm during the first quarter worth $34,000. Ascentis Independent Advisors purchased a new stake in Affirm during the first quarter worth $41,000. CX Institutional grew its holdings in Affirm by 2,724.3% in the second quarter. CX Institutional now owns 1,045 shares of the company’s stock valued at $85,000 after purchasing an additional 1,008 shares during the last quarter. Finally, Harbor Investment Advisory LLC acquired a new stake in Affirm in the second quarter valued at $91,000. Hedge funds and other institutional investors own 69.29% of the company’s stock.

About Affirm

Affirm Holdings, Inc is a financial technology company that provides flexible payment options for consumers and commerce-enabling tools for merchants. Its core business is buy now, pay later financing, allowing eligible shoppers to pay for purchases over time through fixed installment plans, with terms and pricing that vary by transaction and consumer qualification.

Affirm’s products include point-of-sale financing integrated into merchant checkout experiences, the Affirm app and marketplace, and the Affirm Card, which is designed to let users convert eligible purchases into installment plans.