Affirm Target of Unusually Large Options Trading (NASDAQ:AFRM)

Affirm Holdings, Inc. (NASDAQ:AFRM) was the recipient of unusually large options trading activity on Friday. Traders acquired 67,657 call options on the company. This represents an increase of approximately 46% compared to the typical daily volume of 46,346 call options.

Insiders Place Their Bets

In related news, Director Keith Rabois sold 16,088 shares of the firm’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 transaction of $1,029,149.36. Following the completion of the transaction, the director now owns 61,520 shares in the company, valued at $3,935,434.40. This trade represents a 20.73 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Noel Bertram Watson sold 2,500 shares of the company’s stock in a transaction on Monday, March 17th. The shares were 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 $1,785,282.66. This trade represents a 6.02 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 55,765 shares of company stock worth $3,094,694 over the last 90 days. Corporate insiders own 12.41% of the company’s stock.

Institutional Trading of Affirm

Several hedge funds have recently added to or reduced their stakes in AFRM. Tidal Investments LLC increased its holdings in shares of Affirm by 208.6% in the third quarter. Tidal Investments LLC now owns 21,775 shares of the company’s stock worth $889,000 after acquiring an additional 14,720 shares in the last quarter. Nordea Investment Management AB acquired a new position in shares of Affirm in the fourth quarter valued at approximately $6,380,000. Diversified Trust Co bought a new stake in shares of Affirm during the fourth quarter worth $225,000. SeaCrest Wealth Management LLC acquired a new stake in shares of Affirm during the fourth quarter worth $387,000. Finally, Mount Vernon Associates Inc. MD lifted its position in Affirm by 45.0% in the 4th quarter. Mount Vernon Associates Inc. MD now owns 11,600 shares of the company’s stock valued at $706,000 after acquiring an additional 3,600 shares in the last quarter. Institutional investors and hedge funds own 69.29% of the company’s stock.

Affirm Price Performance

Shares of AFRM stock opened at $46.44 on Friday. Affirm has a 52-week low of $22.25 and a 52-week high of $82.53. The company has a debt-to-equity ratio of 2.68, a quick ratio of 11.26 and a current ratio of 11.26. The stock has a market cap of $14.77 billion, a PE ratio of -71.45 and a beta of 3.66. The firm’s 50 day moving average price is $46.42 and its two-hundred day moving average price is $56.60.

Affirm (NASDAQ:AFRM) last announced its quarterly earnings results on Thursday, May 8th. The company reported $0.01 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.09) by $0.10. The business had revenue of $783.14 million for the quarter, compared to the consensus estimate of $782.98 million. Affirm had a negative net margin of 7.10% and a negative return on equity of 7.25%. Affirm’s revenue for the quarter was up 35.9% on a year-over-year basis. During the same period last year, the company posted ($0.43) EPS. As a group, analysts forecast that Affirm will post -0.18 EPS for the current year.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on AFRM shares. Susquehanna raised shares of Affirm from a “neutral” rating to a “positive” rating and set a $65.00 target price on the stock in a report on Friday. Barclays upped their price objective on shares of Affirm from $75.00 to $85.00 and gave the stock an “overweight” rating in a research note on Monday, February 10th. BMO Capital Markets reiterated an “outperform” rating and issued a $69.00 target price on shares of Affirm in a research note on Thursday, March 20th. JPMorgan Chase & Co. decreased their price target on Affirm from $74.00 to $69.00 and set an “overweight” rating on the stock in a research report on Friday. Finally, Compass Point upgraded Affirm from a “neutral” rating to a “buy” rating and lifted their price objective for the company from $61.00 to $64.00 in a research report on Wednesday, March 19th. Seven analysts have rated the stock with a hold rating, fifteen have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $66.63.

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.