Affirm (NASDAQ:AFRM) Shares Down 5% - What's Next?

Key Points

• Affirm's stock price declined by 5%, trading as low as $73.72, with an average daily volume decrease of 89% during mid-day trading.
• Multiple analysts have offered varying price targets for Affirm, with Truist Financial setting a target of $95.00, while Wall Street Zen downgraded it to a "hold" rating.
• Affirm's COO and CEO recently sold substantial shares of stock, indicating insider trading activity, with a total of 1.9 million shares sold by company insiders in the last 90 days.

Affirm Holdings, Inc. (NASDAQ:AFRM - Get Free Report) shares dropped 5% on Tuesday . The stock traded as low as $73.72 and last traded at $72.77. Approximately 826,638 shares changed hands during mid-day trading, a decline of 89% from the average daily volume of 7,422,700 shares. The stock had previously closed at $76.56.

Analysts Set New Price Targets

A number of research analysts have recently commented on AFRM shares. Truist Financial upped their price target on shares of Affirm from $72.00 to $95.00 and gave the stock a "buy" rating in a report on Friday, September 12th. Bank of America increased their target price on shares of Affirm from $90.00 to $94.00 and gave the stock a "buy" rating in a report on Friday, August 29th. Wall Street Zen cut shares of Affirm from a "buy" rating to a "hold" rating in a report on Saturday, September 13th. Royal Bank Of Canada reiterated a "sector perform" rating on shares of Affirm in a report on Tuesday, September 23rd. Finally, BTIG Research cut shares of Affirm from a "buy" rating to a "neutral" rating in a report on Monday, July 14th. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and eleven have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $80.04.

Affirm Stock Down 7.4%

The stock has a market capitalization of $23.09 billion, a PE ratio of 545.62, a price-to-earnings-growth ratio of 4.94 and a beta of 3.64. The company has a current ratio of 11.54, a quick ratio of 11.54 and a debt-to-equity ratio of 2.55. The company's 50-day moving average is $78.75 and its 200 day moving average is $62.45.

Affirm (NASDAQ:AFRM - Get Free Report) last posted its quarterly earnings results on Thursday, August 28th. The company reported $0.20 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.11 by $0.09. Affirm had a net margin of 1.62% and a return on equity of 1.80%. The company had revenue of $876.42 million during the quarter, compared to analyst estimates of $834.94 million. During the same period last year, the firm posted ($0.14) EPS. Affirm's revenue for the quarter was up 32.9% compared to the same quarter last year. Affirm has set its FY 2026 guidance at EPS. Q1 2026 guidance at EPS. As a group, analysts anticipate that Affirm Holdings, Inc. will post -0.18 EPS for the current year.

Insider Activity at Affirm

In other news, COO Michael Linford sold 184,200 shares of Affirm stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $80.09, for a total transaction of $14,752,578.00. Following the transaction, the chief operating officer owned 109,840 shares in the company, valued at $8,797,085.60. The trade was a 62.64% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Max R. Levchin sold 651,713 shares of the firm's stock in a transaction that occurred on Monday, September 22nd. The stock was sold at an average price of $89.27, for a total transaction of $58,178,419.51. The disclosure for this sale can be found here. Insiders sold a total of 1,921,456 shares of company stock worth $160,284,531 in the last ninety days. 11.82% of the stock is owned by company insiders.

Institutional Trading of Affirm

Institutional investors have recently modified their holdings of the company. Allworth Financial LP boosted its stake in shares of Affirm by 63.7% during the 1st quarter. Allworth Financial LP now owns 563 shares of the company's stock valued at $27,000 after buying an additional 219 shares during the last quarter. Huntington National Bank raised its stake in shares of Affirm by 634.0% in the 2nd quarter. Huntington National Bank now owns 389 shares of the company's stock valued at $27,000 after acquiring an additional 336 shares in the last quarter. SouthState Corp increased its position in Affirm by 190.5% in the 2nd quarter. SouthState Corp now owns 427 shares of the company's stock worth $30,000 after buying an additional 280 shares during the period. Blume Capital Management Inc. increased its position in Affirm by 468.8% in the 2nd quarter. Blume Capital Management Inc. now owns 455 shares of the company's stock worth $31,000 after buying an additional 375 shares during the period. Finally, UMB Bank n.a. grew its holdings in shares of Affirm by 86.6% during the 2nd quarter. UMB Bank n.a. now owns 569 shares of the company's stock worth $39,000 after purchasing an additional 264 shares in the last quarter. Hedge funds and other institutional investors own 69.29% of the company's stock.

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.

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