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

Affirm Holdings, Inc. (NASDAQ:AFRM) gapped down prior to trading on Monday . The stock had previously closed at $50.08, but opened at $46.51. Affirm shares last traded at $44.41, with a volume of 5,465,972 shares changing hands.

Analyst Ratings Changes

AFRM has been the topic of several recent research reports. Jefferies Financial Group raised shares of Affirm from a “hold” rating to a “buy” rating and upped their price target for the company from $70.00 to $82.00 in a report on Thursday, December 19th. Wells Fargo & Company upped their price objective on shares of Affirm from $70.00 to $85.00 and gave the company an “overweight” rating in a research note on Friday, February 7th. Bank of America upped their price objective on shares of Affirm from $50.00 to $74.00 and gave the company a “buy” rating in a research note on Friday, November 22nd. Royal Bank of Canada upped their price objective on shares of Affirm from $67.00 to $81.00 and gave the company a “sector perform” rating in a research note on Friday, February 7th. Finally, Susquehanna downgraded shares of Affirm from a “positive” rating to a “neutral” rating and set a $57.00 price objective on the stock. in a research note on Tuesday, January 21st. Nine 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 company’s stock. According to MarketBeat.com, Affirm presently has an average rating of “Moderate Buy” and an average target price of $68.24.

Affirm Stock Performance

The company has a quick ratio of 11.26, a current ratio of 11.26 and a debt-to-equity ratio of 2.68. The company has a market cap of $13.90 billion, a PE ratio of -67.23 and a beta of 3.63. The stock’s 50 day simple moving average is $61.22 and its two-hundred day simple moving average is $56.00.

Affirm (NASDAQ:AFRM) last released its quarterly earnings data on Thursday, February 6th. The company reported $0.23 earnings per share (EPS) for the quarter, topping the consensus estimate 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, research analysts anticipate that Affirm Holdings, Inc. will post -0.18 earnings per share for the current year.

Insider Transactions at Affirm

In related news, Director Christa S. Quarles sold 5,000 shares of the firm’s stock in a transaction on Friday, February 14th. The shares were sold at an average price of $80.00, for a total transaction of $400,000.00. Following the completion of the sale, the director now directly owns 137,325 shares of the company’s stock, valued at approximately $10,986,000. This trade represents a 3.51 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Keith Rabois sold 16,088 shares of the firm’s stock in a transaction on Monday, March 3rd. The stock was sold at an average price of $63.97, for a total transaction of $1,029,149.36. Following the transaction, the director now directly owns 61,520 shares of the company’s stock, valued at approximately $3,935,434.40. This represents a 20.73 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 59,801 shares of company stock valued at $3,806,093 over the last 90 days. Corporate insiders own 12.41% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in AFRM. Oppenheimer Asset Management Inc. grew its holdings in Affirm by 10.8% during the 3rd quarter. Oppenheimer Asset Management Inc. now owns 24,902 shares of the company’s stock worth $1,016,000 after acquiring an additional 2,432 shares in the last quarter. Oppenheimer & Co. Inc. bought a new position in shares of Affirm in the 3rd quarter worth about $1,419,000. KBC Group NV lifted its position in shares of Affirm by 3.6% in the 3rd quarter. KBC Group NV now owns 6,331 shares of the company’s stock worth $258,000 after buying an additional 222 shares during the last quarter. CIBC Asset Management Inc lifted its position in shares of Affirm by 3.2% in the 3rd quarter. CIBC Asset Management Inc now owns 7,520 shares of the company’s stock worth $307,000 after buying an additional 233 shares during the last quarter. Finally, Natixis Advisors LLC bought a new position in shares of Affirm in the 3rd quarter worth about $759,000. 69.29% of the stock is owned by institutional investors and hedge funds.

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.