Affirm (NASDAQ:AFRM) Shares Gap Down on Analyst Downgrade

Affirm Holdings, Inc. (NASDAQ:AFRM) shares gapped down prior to trading on Friday after UBS Group lowered their price target on the stock from $62.00 to $56.00. The stock had previously closed at $54.26, but opened at $51.05. UBS Group currently has a neutral rating on the stock. Affirm shares last traded at $49.72, with a volume of 883,612 shares changing hands.

Several other research firms have also commented on AFRM. Evercore ISI began coverage on shares of Affirm in a research report on Wednesday, April 9th. They set an “outperform” rating and a $50.00 price target on the stock. Barclays lifted their target price on Affirm from $75.00 to $85.00 and gave the company an “overweight” rating in a research report on Monday, February 10th. Bank of America increased their price target on Affirm from $76.00 to $80.00 and gave the stock a “buy” rating in a report on Friday. William Blair started coverage on shares of Affirm in a report on Wednesday, January 15th. They issued an “outperform” rating on the stock. Finally, JMP Securities lowered their target price on shares of Affirm from $85.00 to $75.00 and set a “market outperform” rating for the company in a research note on Friday. Seven research analysts have rated the stock with a hold rating, fifteen have assigned a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $66.63.

Insider Activity

In related news, Director Noel Bertram Watson sold 2,500 shares of the business’s stock in a transaction dated Monday, March 17th. The stock was sold at an average price of $45.78, for a total value of $114,450.00. Following the transaction, the director now owns 38,997 shares in the company, valued at $1,785,282.66. The trade was a 6.02 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Keith Rabois sold 16,089 shares of Affirm stock in a transaction that occurred on Thursday, May 1st. The shares were sold at an average price of $51.00, for a total value of $820,539.00. Following the completion of the transaction, the director now owns 29,343 shares in the company, valued at $1,496,493. This trade represents a 35.41 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 55,765 shares of company stock valued at $3,094,694. 12.41% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Affirm

Institutional investors have recently bought and sold shares of the company. Hanseatic Management Services Inc. grew its position in Affirm by 12.1% during the fourth quarter. Hanseatic Management Services Inc. now owns 1,797 shares of the company’s stock worth $109,000 after buying an additional 194 shares during the period. KLP Kapitalforvaltning AS boosted its stake in shares of Affirm by 0.4% during the 1st quarter. KLP Kapitalforvaltning AS now owns 49,100 shares of the company’s stock worth $2,219,000 after acquiring an additional 200 shares in the last quarter. Allworth Financial LP grew its holdings in shares of Affirm by 63.7% in the 1st quarter. Allworth Financial LP now owns 563 shares of the company’s stock worth $27,000 after acquiring an additional 219 shares during the period. HB Wealth Management LLC grew its holdings in shares of Affirm by 2.2% in the 1st quarter. HB Wealth Management LLC now owns 11,471 shares of the company’s stock worth $518,000 after acquiring an additional 252 shares during the period. Finally, Amalgamated Bank increased its stake in Affirm by 2.1% in the 1st quarter. Amalgamated Bank now owns 13,773 shares of the company’s stock valued at $622,000 after purchasing an additional 280 shares in the last quarter. 69.29% of the stock is owned by institutional investors and hedge funds.

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 stock has a market capitalization of $14.77 billion, a price-to-earnings ratio of -71.45 and a beta of 3.66. The firm has a fifty day moving average of $46.42 and a 200-day moving average of $56.60.

Affirm (NASDAQ:AFRM) last posted its earnings results on Thursday, May 8th. The company reported $0.01 earnings per share for the quarter, beating 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 firm had revenue of $783.14 million during the quarter, compared to the consensus estimate of $782.98 million. During the same period last year, the firm posted ($0.43) EPS. The firm’s revenue for the quarter was up 35.9% on a year-over-year basis. As a group, sell-side analysts anticipate that Affirm Holdings, Inc. will post -0.18 EPS for the current year.

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.