Affirm (NASDAQ:AFRM) Stock Price Down 7.3% – Here’s What Happened

Affirm Holdings, Inc. (NASDAQ:AFRM) shares traded down 7.3% on Wednesday . The company traded as low as $60.12 and last traded at $60.6310. 1,189,770 shares traded hands during mid-day trading, a decline of 80% from the average session volume of 6,083,587 shares. The stock had previously closed at $65.43.

Affirm News Roundup

Here are the key news stories impacting Affirm this week:

• Positive Sentiment: Mizuho raised its price target on Affirm to $100 from $95 and kept an Outperform rating, citing the company’s $100 billion gross merchandise volume goal and strong long-term growth outlook. Mizuho Hikes Affirm Price Target to $100 as $100 Billion GMV Goal Powers Bull Case
• Positive Sentiment: Jim Cramer called Affirm “a very profitable business” and said the company is “doing the right thing with AI,” reinforcing the bullish investor narrative around its product and platform strategy. Jim Cramer on Affirm: “This Is Now a Very Profitable Business”
• Positive Sentiment: Analyst coverage from multiple outlets pointed to bullish views on Affirm within the financial sector, adding to the sense that Wall Street expects continued execution and growth. Analysts Are Bullish on These Financial Stocks: Affirm Holdings (AFRM), Figure Technology Solutions, Inc. Class A (FIGR)
• Positive Sentiment: Coverage highlighted Affirm’s move into AI-enabled commerce and a partnership with Google to simplify installment payments in AI shopping, which could expand usage and merchant adoption over time. Can Affirm and Google Simplify Payments in AI Shopping?
• Neutral Sentiment: Affirm’s investor day emphasized a long-term expansion blueprint, including new products and international growth, but the market reaction was mixed and shares were reported lower after the event. Affirm Unveils Aggressive Expansion Blueprint
• Negative Sentiment: Director Noel Bertram Watson sold 2,000 shares in a pre-arranged transaction, which can slightly weigh on sentiment even though the sale was under a 10b5-1 plan. Insider trade disclosure for Noel Bertram Watson

Analyst Upgrades and Downgrades

A number of research firms have issued reports on AFRM. Citigroup reissued a “buy” rating on shares of Affirm in a research report on Wednesday, April 15th. BTIG Research restated a “neutral” rating on shares of Affirm in a report on Thursday, February 26th. Morgan Stanley set a $79.00 price objective on Affirm and gave the company an “overweight” rating in a research note on Sunday. Cantor Fitzgerald boosted their target price on Affirm from $61.00 to $80.00 and gave the stock an “overweight” rating in a report on Tuesday, April 21st. Finally, Bank of America raised their price target on shares of Affirm from $82.00 to $88.00 and gave the company a “buy” rating in a report on Monday. One analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and nine have given a Hold rating to the stock. According to data from MarketBeat.com, Affirm currently has a consensus rating of “Moderate Buy” and an average price target of $86.00.

Affirm Stock Performance

The firm has a market cap of $22.51 billion, a price-to-earnings ratio of 61.43, a PEG ratio of 4.03 and a beta of 3.72. The company has a quick ratio of 11.41, a current ratio of 11.32 and a debt-to-equity ratio of 2.39. The company has a 50 day moving average of $54.40 and a 200 day moving average of $62.86.

Affirm (NASDAQ:AFRM) last posted its quarterly earnings results on Thursday, May 7th. The company reported $0.30 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.17 by $0.13. The firm had revenue of $943.95 million for the quarter, compared to analysts’ expectations of $995.27 million. Affirm had a net margin of 9.63% and a return on equity of 11.17%. The firm’s quarterly revenue was up 32.7% on a year-over-year basis. During the same period in the prior year, the company posted $0.01 earnings per share. As a group, equities research analysts expect that Affirm Holdings, Inc. will post 1.13 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Noel Bertram Watson sold 2,000 shares of the business’s stock in a transaction dated Wednesday, May 13th. The stock was sold at an average price of $65.00, for a total value of $130,000.00. Following the completion of the sale, the director directly owned 36,076 shares of the company’s stock, valued at $2,344,940. The trade was a 5.25% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 11.01% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. lifted its stake in Affirm by 1.8% during the fourth quarter. Vanguard Group Inc. now owns 24,847,206 shares of the company’s stock worth $1,849,378,000 after purchasing an additional 428,138 shares during the last quarter. Capital Research Global Investors increased its stake in Affirm by 0.5% during the fourth quarter. Capital Research Global Investors now owns 23,145,942 shares of the company’s stock valued at $1,722,797,000 after purchasing an additional 104,239 shares during the last quarter. Capital World Investors raised its holdings in shares of Affirm by 2.4% during the fourth quarter. Capital World Investors now owns 21,710,914 shares of the company’s stock worth $1,615,953,000 after purchasing an additional 507,224 shares during the period. Durable Capital Partners LP lifted its position in shares of Affirm by 12.3% in the 2nd quarter. Durable Capital Partners LP now owns 7,389,337 shares of the company’s stock worth $510,899,000 after buying an additional 808,455 shares during the last quarter. Finally, State Street Corp lifted its position in shares of Affirm by 26.7% in the 3rd quarter. State Street Corp now owns 5,641,965 shares of the company’s stock worth $412,315,000 after buying an additional 1,187,665 shares during the last quarter. Institutional investors and hedge funds own 69.29% of the company’s stock.

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.