Affirm (NASDAQ:AFRM) Shares Gap Down – Here’s What Happened

Affirm Holdings, Inc. (NASDAQ:AFRM)’s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $72.86, but opened at $70.24. Affirm shares last traded at $68.78, with a volume of 1,980,471 shares.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on the company. Barclays upped their target price on Affirm from $64.00 to $75.00 and gave the stock an “overweight” rating in a research report on Monday, November 25th. Needham & Company LLC reaffirmed a “hold” rating on shares of Affirm in a research note on Friday, September 6th. Susquehanna upped their price target on shares of Affirm from $52.00 to $57.00 and gave the company a “positive” rating in a report on Friday, November 8th. BTIG Research raised shares of Affirm from a “neutral” rating to a “buy” rating and set a $68.00 price objective on the stock in a research note on Tuesday, October 8th. Finally, The Goldman Sachs Group increased their target price on shares of Affirm from $57.00 to $78.00 and gave the company a “buy” rating in a research note on Monday, December 2nd. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating and eight have assigned a buy rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $58.21.

Affirm Stock Down 2.2 %

The firm has a market cap of $22.39 billion, a PE ratio of -48.83 and a beta of 3.66. The company has a debt-to-equity ratio of 2.50, a current ratio of 12.60 and a quick ratio of 12.60. The business has a fifty day moving average price of $55.66 and a two-hundred day moving average price of $41.05.

Affirm (NASDAQ:AFRM) last released its earnings results on Thursday, November 7th. The company reported ($0.31) earnings per share for the quarter, beating the consensus estimate of ($0.36) by $0.05. The company had revenue of $698.48 million for the quarter, compared to analysts’ expectations of $661.39 million. Affirm had a negative return on equity of 12.57% and a negative net margin of 17.67%. During the same quarter in the previous year, the business posted ($0.57) EPS. On average, analysts anticipate that Affirm Holdings, Inc. will post -0.53 EPS for the current fiscal year.

Insider Activity

In other news, Director Keith Rabois sold 16,086 shares of Affirm stock in a transaction dated Thursday, December 12th. The stock was sold at an average price of $68.98, for a total transaction of $1,109,612.28. Following the completion of the sale, the director now directly owns 109,780 shares in the company, valued at $7,572,624.40. The trade was a 12.78 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Katherine Adkins sold 82,316 shares of the 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 completion of the transaction, the insider now owns 91,499 shares in the company, valued at $4,117,455. This represents a 47.36 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 1,380,667 shares of company stock worth $88,399,613 in the last ninety days. Corporate insiders own 12.41% of the company’s stock.

Hedge Funds Weigh In On Affirm

Institutional investors have recently bought and sold shares of the stock. Dragoneer Investment Group LLC acquired a new position in shares of Affirm during the 2nd quarter valued at about $45,219,000. Artemis Investment Management LLP acquired a new position in Affirm during the third quarter valued at approximately $30,808,000. Holocene Advisors LP bought a new position in shares of Affirm in the third quarter valued at approximately $27,872,000. Charles Schwab Investment Management Inc. lifted its stake in shares of Affirm by 44.0% in the third quarter. Charles Schwab Investment Management Inc. now owns 2,203,210 shares of the company’s stock worth $89,935,000 after buying an additional 672,883 shares during the last quarter. Finally, Bank of Montreal Can boosted its holdings in shares of Affirm by 269.7% during the 3rd quarter. Bank of Montreal Can now owns 724,336 shares of the company’s stock worth $29,814,000 after buying an additional 528,400 shares during the period. 69.29% of the stock is currently owned by 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.