Affirm (NASDAQ:AFRM) Stock Price Down 7.6% – Here’s Why

Affirm Holdings, Inc. (NASDAQ:AFRM)’s share price dropped 7.6% during mid-day trading on Friday . The company traded as low as $44.51 and last traded at $45.08. Approximately 5,297,630 shares were traded during trading, a decline of 39% from the average daily volume of 8,728,453 shares. The stock had previously closed at $48.79.

Analyst Upgrades and Downgrades

Several equities analysts have commented on the stock. Needham & Company LLC restated a “hold” rating on shares of Affirm in a research note on Friday, September 6th. BTIG Research raised Affirm from a “neutral” rating to a “buy” rating and set a $68.00 target price for the company in a research note on Tuesday, October 8th. Morgan Stanley upgraded Affirm from an “underweight” rating to an “equal weight” rating and lifted their price objective for the company from $22.00 to $37.00 in a research note on Wednesday, October 9th. Susquehanna upped their target price on shares of Affirm from $52.00 to $57.00 and gave the stock a “positive” rating in a research note on Friday. Finally, Barclays lifted their price target on shares of Affirm from $50.00 to $54.00 and gave the stock an “overweight” rating in a research note on Monday, September 23rd. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and nine have issued a buy rating to the company. According to MarketBeat, the company has an average rating of “Hold” and a consensus target price of $43.97.

Affirm Stock Performance

The company has a debt-to-equity ratio of 2.41, a current ratio of 13.07 and a quick ratio of 13.07. The company has a market cap of $14.08 billion, a PE ratio of -25.79 and a beta of 3.47. The stock has a 50 day simple moving average of $42.93 and a two-hundred day simple moving average of $34.75.

Affirm (NASDAQ:AFRM) last issued its quarterly earnings data on Wednesday, August 28th. The company reported ($0.14) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.45) by $0.31. Affirm had a negative net margin of 22.29% and a negative return on equity of 15.55%. The company had revenue of $659.19 million for the quarter, compared to the consensus estimate of $599.50 million. Equities analysts predict that Affirm Holdings, Inc. will post -0.62 EPS for the current year.

Insider Buying and Selling at Affirm

In other Affirm news, insider Katherine Adkins sold 82,316 shares of Affirm stock in a transaction that occurred on Wednesday, September 18th. The stock was sold at an average price of $45.00, for a total value of $3,704,220.00. Following the transaction, the insider now directly owns 91,499 shares in the company, valued at approximately $4,117,455. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. In other Affirm news, Director Christa S. Quarles sold 14,400 shares of the business’s stock in a transaction that occurred on Thursday, September 12th. The stock was sold at an average price of $40.02, for a total transaction of $576,288.00. Following the transaction, the director now owns 141,903 shares in the company, valued at approximately $5,678,958.06. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Katherine Adkins sold 82,316 shares of Affirm stock in a transaction that occurred on Wednesday, September 18th. The shares were sold at an average price of $45.00, for a total value of $3,704,220.00. Following the completion of the sale, the insider now owns 91,499 shares in the company, valued at approximately $4,117,455. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 102,800 shares of company stock valued at $4,554,288 in the last ninety days. Insiders own 12.41% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Dragoneer Investment Group LLC purchased a new stake in shares of Affirm during the 2nd quarter worth approximately $45,219,000. Vanguard Group Inc. raised its holdings in Affirm by 6.8% during the first quarter. Vanguard Group Inc. now owns 20,823,803 shares of the company’s stock worth $775,895,000 after purchasing an additional 1,316,901 shares during the last quarter. Artemis Investment Management LLP purchased a new stake in Affirm during the third quarter worth $30,808,000. Jupiter Asset Management Ltd. acquired a new stake in Affirm in the first quarter valued at $20,150,000. Finally, Bank of Montreal Can increased its position in shares of Affirm by 2,305.3% in the second quarter. Bank of Montreal Can now owns 195,936 shares of the company’s stock valued at $6,466,000 after buying an additional 187,790 shares in the last quarter. Hedge funds and other institutional investors own 69.29% of the company’s stock.

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.