Affirm (NASDAQ:AFRM) Shares Down 5.7% – Here’s Why

Affirm Holdings, Inc. (NASDAQ:AFRM) shares fell 5.7% on Tuesday . The stock traded as low as $45.15 and last traded at $45.25. 1,024,439 shares changed hands during trading, a decline of 87% from the average session volume of 7,979,372 shares. The stock had previously closed at $47.96.

Analyst Ratings Changes

Several brokerages have recently weighed in on AFRM. JPMorgan Chase & Co. increased their target price on shares of Affirm from $56.00 to $74.00 and gave the stock an “overweight” rating in a research note on Monday, December 2nd. Morgan Stanley increased their target price on shares of Affirm from $39.00 to $55.00 and gave the stock an “equal weight” rating in a research note on Tuesday, January 28th. Deutsche Bank Aktiengesellschaft increased their target price on shares of Affirm from $45.00 to $75.00 and gave the stock a “hold” rating in a research note on Monday, December 16th. JMP Securities increased their target price on shares of Affirm from $78.00 to $85.00 and gave the stock a “market outperform” rating in a research note on Friday, February 7th. Finally, Bank of America increased their target price on shares of Affirm from $50.00 to $74.00 and gave the stock a “buy” rating in a research note on Friday, November 22nd. Nine equities research analysts have rated the stock with a hold rating, ten have assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $70.24.

Affirm Stock Performance

The stock’s 50-day moving average price is $61.57 and its 200-day moving average price is $56.01. The company has a debt-to-equity ratio of 2.68, a quick ratio of 11.26 and a current ratio of 11.26. The company has a market capitalization of $14.04 billion, a price-to-earnings ratio of -67.90 and a beta of 3.63.

Affirm (NASDAQ:AFRM) last posted its quarterly earnings results on Thursday, February 6th. The company reported $0.23 earnings per share (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%. As a group, equities research analysts expect that Affirm Holdings, Inc. will post -0.18 earnings per share for the current year.

Insider Transactions at Affirm

In other Affirm news, Director Keith Rabois sold 16,088 shares of Affirm stock in a transaction that occurred on Monday, March 3rd. The shares were sold at an average price of $63.97, for a total value of $1,029,149.36. Following the completion of the sale, the director now directly owns 61,520 shares of the company’s stock, valued at approximately $3,935,434.40. The trade was a 20.73 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Robert O’hare sold 6,541 shares of Affirm stock in a transaction that occurred on Thursday, January 2nd. The stock was sold at an average price of $62.28, for a total transaction of $407,373.48. Following the completion of the sale, the chief financial officer now directly owns 2,963 shares of the company’s stock, 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 sold a total of 59,801 shares of company stock valued at $3,806,093 in the last ninety days. Corporate insiders own 12.41% of the company’s stock.

Institutional Trading of Affirm

Hedge funds and other institutional investors have recently bought and sold shares of the company. Oppenheimer & Co. Inc. purchased a new stake in Affirm in the 3rd quarter worth approximately $1,419,000. Quest Partners LLC purchased a new stake in Affirm in the 3rd quarter worth approximately $391,000. Nordea Investment Management AB acquired a new position in shares of Affirm in the 4th quarter valued at $6,380,000. Charles Schwab Investment Management Inc. boosted its holdings in shares of Affirm by 44.0% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 2,203,210 shares of the company’s stock valued at $89,935,000 after purchasing an additional 672,883 shares during the last quarter. Finally, Atreides Management LP acquired a new position in shares of Affirm in the 3rd quarter valued at $20,404,000. 69.29% of the stock is owned by hedge funds and other institutional investors.

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.