Affirm (NASDAQ:AFRM) Shares Gap Down – What’s Next?

Affirm Holdings, Inc. (NASDAQ:AFRM) gapped down before the market opened on Monday . The stock had previously closed at $52.57, but opened at $50.22. Affirm shares last traded at $50.93, with a volume of 1,206,707 shares changing hands.

Analyst Ratings Changes

AFRM has been the subject of several recent research reports. The Goldman Sachs Group boosted their price objective on Affirm from $45.00 to $58.00 and gave the company a “buy” rating in a report on Monday, May 12th. Bank of America upped their price target on Affirm from $76.00 to $80.00 and gave the company a “buy” rating in a research report on Friday, May 9th. UBS Group decreased their target price on Affirm from $62.00 to $56.00 and set a “neutral” rating on the stock in a research note on Friday, May 9th. TD Cowen began coverage on shares of Affirm in a report on Tuesday, April 8th. They set a “buy” rating and a $50.00 price objective for the company. Finally, Susquehanna upgraded Affirm from a “neutral” rating to a “positive” rating and set a $65.00 price objective on the stock in a research report on Friday, May 9th. Seven research analysts have rated the stock with a hold rating, fifteen have given a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $65.05.

Affirm Trading Down 1.8%

The company has a debt-to-equity ratio of 2.68, a current ratio of 11.26 and a quick ratio of 11.26. The stock has a market cap of $16.43 billion, a price-to-earnings ratio of -79.50 and a beta of 3.66. The company’s fifty day moving average price is $46.66 and its 200-day moving average price is $57.18.

Affirm (NASDAQ:AFRM) last issued its quarterly earnings results on Thursday, May 8th. The company reported $0.01 earnings per share for the quarter, topping the consensus estimate of ($0.09) by $0.10. Affirm had a negative net margin of 7.10% and a negative return on equity of 7.25%. The company had revenue of $783.14 million for the quarter, compared to the consensus estimate of $782.98 million. During the same quarter in the prior year, the company earned ($0.43) EPS. Affirm’s quarterly revenue was up 35.9% on a year-over-year basis. On average, research analysts expect that Affirm Holdings, Inc. will post -0.18 EPS for the current fiscal year.

Insider Buying and Selling

In other Affirm news, Director Keith Rabois sold 16,088 shares of the company’s stock in a transaction that occurred on Monday, March 3rd. The stock was sold at an average price of $63.97, for a total value of $1,029,149.36. Following the sale, the director now owns 61,520 shares in the company, valued at approximately $3,935,434.40. This represents a 20.73% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Noel Bertram Watson sold 2,500 shares of the company’s stock in a transaction that occurred on Monday, March 17th. The stock was sold at an average price of $45.78, for a total value of $114,450.00. Following the completion of the sale, the director now owns 38,997 shares in the company, valued at approximately $1,785,282.66. This represents a 6.02% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 50,765 shares of company stock worth $2,694,694. 12.41% of the stock is owned by company insiders.

Institutional Investors Weigh In On Affirm

Several hedge funds have recently bought and sold shares of AFRM. Durable Capital Partners LP boosted its position in Affirm by 97.3% in the 4th quarter. Durable Capital Partners LP now owns 5,858,283 shares of the company’s stock worth $356,769,000 after purchasing an additional 2,888,827 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its position in shares of Affirm by 140.8% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 4,544,132 shares of the company’s stock valued at $205,350,000 after buying an additional 2,657,074 shares in the last quarter. Norges Bank purchased a new position in shares of Affirm during the 4th quarter valued at approximately $139,949,000. Capital International Investors purchased a new position in shares of Affirm during the 4th quarter valued at approximately $100,030,000. Finally, Vanguard Group Inc. lifted its position in shares of Affirm by 6.7% during the 1st quarter. Vanguard Group Inc. now owns 23,272,997 shares of the company’s stock valued at $1,051,707,000 after buying an additional 1,457,434 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.