Affirm (NASDAQ:AFRM) Stock Price Down 8.2% – Here’s Why

Affirm Holdings, Inc. (NASDAQ:AFRM) shares were down 8.2% during trading on Wednesday . The company traded as low as $65.05 and last traded at $65.17. Approximately 1,116,758 shares were traded during mid-day trading, a decline of 81% from the average daily volume of 5,954,479 shares. The stock had previously closed at $71.01.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on AFRM. JPMorgan Chase & Co. raised their target price on shares of Affirm from $79.00 to $80.00 and gave the company an “overweight” rating in a research note on Friday, May 8th. Weiss Ratings restated a “hold (c-)” rating on shares of Affirm in a research note on Friday, March 27th. Stephens lifted their target price on Affirm from $55.00 to $75.00 and gave the stock an “equal weight” rating in a research note on Friday, May 8th. Truist Financial boosted their target price on Affirm from $75.00 to $80.00 and gave the stock a “buy” rating in a report on Thursday, May 28th. Finally, TD Cowen reaffirmed a “buy” rating on shares of Affirm in a report on Friday, February 6th. One analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating and nine have given a Hold rating to the stock. According to MarketBeat.com, Affirm currently has an average rating of “Moderate Buy” and an average price target of $86.20.

Affirm Price Performance

The company has a 50 day moving average of $59.12 and a 200-day moving average of $62.49. The firm has a market capitalization of $22.04 billion, a P/E ratio of 59.82, a P/E/G ratio of 4.20 and a beta of 3.70. The company has a current ratio of 11.32, a quick ratio of 11.32 and a debt-to-equity ratio of 2.39.

Affirm (NASDAQ:AFRM) last posted its quarterly earnings data on Thursday, May 7th. The company reported $0.30 earnings per share for the quarter, topping the consensus estimate of $0.17 by $0.13. The firm had revenue of $943.95 million for the quarter, compared to analysts’ expectations of $995.27 million. Affirm had a return on equity of 11.17% and a net margin of 9.63%.The company’s quarterly revenue was up 32.7% compared to the same quarter last year. During the same quarter last year, the business earned $0.01 EPS. On average, sell-side analysts predict that Affirm Holdings, Inc. will post 1.25 EPS for the current year.

Insiders Place Their Bets

In other Affirm news, Director Noel Bertram Watson sold 2,000 shares of the business’s stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of $65.00, for a total value of $130,000.00. Following the completion of the sale, the director owned 36,076 shares of the company’s stock, valued at $2,344,940. The trade was a 5.25% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 11.01% of the stock is owned by company insiders.

Institutional Investors Weigh In On Affirm

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Royal Bank of Canada raised its holdings in Affirm by 2.1% in the 1st quarter. Royal Bank of Canada now owns 193,601 shares of the company’s stock valued at $8,748,000 after acquiring an additional 3,892 shares in the last quarter. Empowered Funds LLC increased its position in shares of Affirm by 90.7% in the first quarter. Empowered Funds LLC now owns 16,852 shares of the company’s stock worth $762,000 after purchasing an additional 8,014 shares during the period. Focus Partners Wealth acquired a new position in Affirm in the first quarter valued at about $243,000. EverSource Wealth Advisors LLC raised its stake in Affirm by 18.5% in the second quarter. EverSource Wealth Advisors LLC now owns 2,738 shares of the company’s stock valued at $189,000 after purchasing an additional 427 shares in the last quarter. Finally, First Trust Advisors LP lifted its position in Affirm by 44.8% during the second quarter. First Trust Advisors LP now owns 191,525 shares of the company’s stock worth $13,242,000 after purchasing an additional 59,297 shares during the period. 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.