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

Affirm Holdings, Inc. (NASDAQ:AFRM)’s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $62.06, but opened at $60.16. Affirm shares last traded at $61.45, with a volume of 2,079,224 shares traded.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on AFRM. Barclays lifted their target price on shares of Affirm from $54.00 to $64.00 and gave the stock an “overweight” rating in a research note on Monday. BTIG Research raised shares of Affirm from a “neutral” rating to a “buy” rating and set a $68.00 price objective for the company in a research report on Tuesday, October 8th. Morgan Stanley upgraded shares of Affirm from an “underweight” rating to an “equal weight” rating and boosted their price target for the stock from $22.00 to $37.00 in a research note on Wednesday, October 9th. Needham & Company LLC reissued a “hold” rating on shares of Affirm in a report on Friday, September 6th. Finally, Bank of America increased their target price on shares of Affirm from $36.00 to $42.00 and gave the company a “buy” rating in a report on Thursday, August 29th. One research analyst has rated the stock with a sell rating, nine have issued a hold rating and nine have given a buy rating to the company’s stock. Based on data from MarketBeat, Affirm has an average rating of “Hold” and a consensus price target of $46.85.

Affirm Stock Performance

The company has a fifty day moving average of $44.96 and a 200 day moving average of $35.90. The company has a debt-to-equity ratio of 2.50, a current ratio of 12.60 and a quick ratio of 12.60. The stock has a market cap of $19.80 billion, a P/E ratio of -42.15 and a beta of 3.47.

Affirm (NASDAQ:AFRM) last issued its quarterly earnings results on Thursday, November 7th. The company reported ($0.31) EPS for the quarter, topping the consensus estimate of ($0.36) by $0.05. Affirm had a negative net margin of 17.67% and a negative return on equity of 12.57%. The firm had revenue of $698.48 million for the quarter, compared to analysts’ expectations of $661.39 million. During the same period in the previous year, the business earned ($0.57) earnings per share. On average, equities analysts predict that Affirm Holdings, Inc. will post -0.53 earnings per share for the current fiscal year.

Insider Transactions at Affirm

In other news, CFO Robert O’hare sold 100,938 shares of the business’s stock in a transaction that occurred on Monday, November 11th. The shares were sold at an average price of $55.00, for a total transaction of $5,551,590.00. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Christa S. Quarles sold 14,400 shares of the company’s stock in a transaction that occurred on Thursday, September 12th. The shares were sold at an average price of $40.02, for a total transaction of $576,288.00. Following the completion of the sale, the director now owns 141,903 shares of the company’s stock, valued at approximately $5,678,958.06. This trade represents a 9.21 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 403,738 shares of company stock valued at $21,115,878 over the last three months. Company insiders own 12.41% of the company’s stock.

Institutional Trading of Affirm

Several large investors have recently added to or reduced their stakes in the company. Ridgewood Investments LLC acquired a new position in Affirm during the second quarter worth $27,000. ORG Wealth Partners LLC acquired a new position in shares of Affirm during the 3rd quarter valued at about $29,000. Allspring Global Investments Holdings LLC raised its stake in shares of Affirm by 82.4% in the 2nd quarter. Allspring Global Investments Holdings LLC now owns 1,195 shares of the company’s stock valued at $36,000 after acquiring an additional 540 shares in the last quarter. ORG Partners LLC raised its position in shares of Affirm by 80.0% in the second quarter. ORG Partners LLC now owns 1,240 shares of the company’s stock valued at $37,000 after purchasing an additional 551 shares during the period. Finally, Advisors Asset Management Inc. boosted its position in shares of Affirm by 168.2% in the third quarter. Advisors Asset Management Inc. now owns 1,070 shares of the company’s stock valued at $44,000 after acquiring an additional 671 shares during the period. 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.