Affirm (NASDAQ:AFRM) Shares Down 5.8% - Should You Sell?

Key Points

• Affirm Holdings shares fell by 5.8% during trading, with a significant decrease in trading volume, indicating potential investor concerns.
• Affirm's latest earnings report showed a 32.9% increase in revenue year-over-year, beating analysts' estimates, but the stock has faced recent downgrades from multiple research firms.
• Insider selling activity has been notable, with key executives selling shares amounting to approximately $89 million in the last quarter, indicating a decrease in their ownership percentages.

Affirm Holdings, Inc. (NASDAQ:AFRM - Get Free Report)'s share price was down 5.8% during mid-day trading on Tuesday . The company traded as low as $82.66 and last traded at $83.30. Approximately 2,791,940 shares traded hands during mid-day trading, a decline of 62% from the average daily volume of 7,353,675 shares. The stock had previously closed at $88.46.

Analyst Ratings Changes

Several analysts have recently commented on the stock. Royal Bank Of Canada upped their price objective on shares of Affirm from $75.00 to $97.00 and gave the company a "sector perform" rating in a report on Friday, August 29th. BTIG Research downgraded shares of Affirm from a "buy" rating to a "neutral" rating in a research note on Monday, July 14th. Susquehanna lifted their target price on shares of Affirm from $65.00 to $76.00 and gave the company a "positive" rating in a report on Wednesday, July 23rd. Rothschild & Co Redburn began coverage on shares of Affirm in a research note on Friday, August 1st. They set a "neutral" rating and a $74.00 price target on the stock. Finally, Stephens began coverage on shares of Affirm in a research note on Thursday, June 12th. They set an "equal weight" rating and a $69.00 price target on the stock. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and eleven have assigned a Hold rating to the company. According to data from MarketBeat.com, Affirm presently has an average rating of "Moderate Buy" and a consensus price target of $79.04.

Affirm Stock Performance

The stock's 50 day moving average price is $73.27 and its 200 day moving average price is $59.53. 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 has a market cap of $28.18 billion, a price-to-earnings ratio of 671.97, a P/E/G ratio of 5.84 and a beta of 3.64.

Affirm (NASDAQ:AFRM - Get Free Report) last posted its 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 firm had revenue of $876.42 million during the quarter, compared to the consensus estimate of $834.94 million. During the same quarter in the prior year, the company earned ($0.14) EPS. The company's revenue was up 32.9% on a year-over-year basis. Affirm has set its FY 2026 guidance at EPS. Q1 2026 guidance at EPS. On average, analysts expect that Affirm Holdings, Inc. will post -0.18 EPS for the current fiscal year.

Insider Activity

In other Affirm news, CFO Robert O'hare sold 77,800 shares of the firm's stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $80.09, for a total value of $6,231,002.00. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CAO Siphelele Jiyane sold 22,725 shares of Affirm stock in a transaction dated Friday, August 29th. The shares were sold at an average price of $96.47, for a total transaction of $2,192,280.75. Following the sale, the chief accounting officer owned 219,467 shares in the company, valued at approximately $21,171,981.49. This represents a 9.38% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 1,234,964 shares of company stock valued at $98,925,256 over the last three months. 11.82% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Affirm

A number of institutional investors have recently bought and sold shares of the stock. Price T Rowe Associates Inc. MD grew its stake in Affirm by 140.8% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 4,544,132 shares of the company's stock valued at $205,350,000 after acquiring an additional 2,657,074 shares in the last quarter. Norges Bank acquired a new stake in Affirm in the 2nd quarter worth approximately $183,475,000. Atreides Management LP lifted its holdings in shares of Affirm by 543.3% during the second quarter. Atreides Management LP now owns 1,977,882 shares of the company's stock worth $136,751,000 after buying an additional 1,670,429 shares during the last quarter. Vanguard Group Inc. lifted its holdings in shares of Affirm by 6.7% during the first quarter. Vanguard Group Inc. now owns 23,272,997 shares of the company's stock worth $1,051,707,000 after buying an additional 1,457,434 shares during the last quarter. Finally, Foxhaven Asset Management LP acquired a new position in shares of Affirm during the fourth quarter worth approximately $80,917,000. Hedge funds and other institutional investors own 69.29% of the company's stock.

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.