Affirm (NASDAQ:AFRM) Trading Down 11.3% – Time to Sell?

Shares of Affirm Holdings, Inc. (NASDAQ:AFRM) dropped 11.3% during trading on Thursday . The company traded as low as $49.78 and last traded at $50.1480. Approximately 7,537,222 shares traded hands during mid-day trading, an increase of 11% from the average daily volume of 6,783,318 shares. The stock had previously closed at $56.54.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on the stock. Needham & Company LLC dropped their target price on shares of Affirm from $100.00 to $85.00 and set a “buy” rating on the stock in a report on Friday, February 6th. Morgan Stanley upgraded Affirm from an “equal weight” rating to an “overweight” rating and dropped their price objective for the company from $83.00 to $76.00 in a research note on Tuesday, February 3rd. BTIG Research reaffirmed a “neutral” rating on shares of Affirm in a research report on Wednesday, December 17th. Citigroup upgraded Affirm to a “strong-buy” rating in a research note on Thursday, October 23rd. Finally, Cantor Fitzgerald restated an “overweight” rating and issued a $85.00 price target on shares of Affirm in a research note on Monday, February 9th. One equities research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $86.67.

Affirm Stock Performance

The company has a fifty day moving average of $70.16 and a two-hundred day moving average of $73.77. The firm has a market capitalization of $16.59 billion, a price-to-earnings ratio of 61.49, a PEG ratio of 1.86 and a beta of 3.56. The company has a debt-to-equity ratio of 2.58, a quick ratio of 11.41 and a current ratio of 11.41.

Affirm (NASDAQ:AFRM) last issued its quarterly earnings data on Thursday, February 5th. The company reported $0.37 EPS for the quarter, beating analysts’ consensus estimates of $0.28 by $0.09. Affirm had a return on equity of 8.83% and a net margin of 7.60%.The firm had revenue of $1.12 billion for the quarter, compared to analyst estimates of $1.06 billion. During the same period in the prior year, the firm posted $0.23 EPS. The company’s revenue for the quarter was up 29.6% on a year-over-year basis. As a group, equities research analysts predict that Affirm Holdings, Inc. will post -0.18 earnings per share for the current fiscal year.

Insider Buying and Selling at Affirm

In other Affirm news, CEO Max R. Levchin sold 666,666 shares of the firm’s stock in a transaction dated Monday, January 5th. The shares were sold at an average price of $80.62, for a total value of $53,746,612.92. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CFO Robert O’hare sold 36,401 shares of the business’s stock in a transaction that occurred on Monday, January 5th. The shares were sold at an average price of $80.00, for a total transaction of $2,912,080.00. Following the completion of the transaction, the chief financial officer owned 1,368 shares of the company’s stock, valued at $109,440. The trade was a 96.38% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 711,256 shares of company stock valued at $57,231,923 over the last ninety days. Insiders own 11.01% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Transamerica Financial Advisors LLC boosted its holdings in shares of Affirm by 5,848.1% in the 4th quarter. Transamerica Financial Advisors LLC now owns 1,606 shares of the company’s stock valued at $120,000 after purchasing an additional 1,579 shares in the last quarter. Maverick Capital Ltd. lifted its position in shares of Affirm by 37.2% during the 4th quarter. Maverick Capital Ltd. now owns 66,024 shares of the company’s stock worth $4,914,000 after buying an additional 17,914 shares during the last quarter. The Manufacturers Life Insurance Company boosted its stake in Affirm by 3.3% in the fourth quarter. The Manufacturers Life Insurance Company now owns 14,121 shares of the company’s stock valued at $1,051,000 after buying an additional 455 shares in the last quarter. UMB Bank n.a. grew its position in Affirm by 36.6% in the fourth quarter. UMB Bank n.a. now owns 783 shares of the company’s stock valued at $58,000 after acquiring an additional 210 shares during the last quarter. Finally, Stifel Financial Corp grew its position in Affirm by 12.5% in the fourth quarter. Stifel Financial Corp now owns 11,870 shares of the company’s stock valued at $883,000 after acquiring an additional 1,317 shares during the last quarter. 69.29% of the stock is currently owned by institutional investors and hedge funds.

About Affirm

Affirm Holdings, Inc is a financial technology company that provides point-of-sale consumer lending and payments solutions for online and in-store purchases. Its core product is a buy-now-pay-later (BNPL) platform that enables consumers to split purchases into fixed, transparent installment loans with no hidden fees. Affirm offers a range of financing options through merchant integrations, a consumer-facing mobile app and virtual card capabilities, and tools for merchants to offer alternative payment methods at checkout.