Affirm (NASDAQ:AFRM) Trading Down 3.4% - Should You Sell?

Key Points

• Affirm Holdings, Inc. (NASDAQ:AFRM) saw its stock price drop by 3.4% to $81.94, with trading volume down 47% compared to its average daily volume.
• Despite the recent decline, several analysts have increased their price targets for Affirm, with estimates ranging from $78.00 to $105.00 and a general consensus rating of "Moderate Buy."
• The company reported $0.20 earnings per share in its latest quarterly earnings, surpassing analyst expectations and showing a revenue increase of 32.9% year-over-year.

Affirm Holdings, Inc. (NASDAQ:AFRM - Get Free Report) dropped 3.4% on Thursday . The company traded as low as $81.79 and last traded at $81.94. Approximately 3,957,195 shares were traded during mid-day trading, a decline of 47% from the average daily volume of 7,455,891 shares. The stock had previously closed at $84.87.

Analyst Ratings Changes

AFRM has been the subject of a number of research analyst reports. JPMorgan Chase & Co. boosted their target price on shares of Affirm from $91.00 to $94.00 and gave the stock an "overweight" rating in a research note on Friday, August 29th. JMP Securities boosted their price target on shares of Affirm from $75.00 to $105.00 and gave the stock a "market outperform" rating in a research note on Friday, August 29th. Jefferies Financial Group boosted their price target on shares of Affirm from $82.00 to $95.00 and gave the stock a "buy" rating in a research note on Tuesday, August 26th. Deutsche Bank Aktiengesellschaft started coverage on shares of Affirm in a research note on Thursday, July 17th. They set a "buy" rating and a $78.00 price target for the company. Finally, Needham & Company LLC reissued a "hold" rating on shares of Affirm in a research note on Wednesday, July 2nd. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and eleven have issued a Hold rating to the stock. According to MarketBeat, Affirm presently has a consensus rating of "Moderate Buy" and an average target price of $79.04.

Affirm Stock Performance

The stock has a market cap of $26.51 billion, a price-to-earnings ratio of 626.28, a PEG ratio of 5.74 and a beta of 3.64. The stock's fifty day moving average is $74.36 and its 200-day moving average is $59.80. The company has a quick ratio of 11.54, a current ratio of 11.54 and a debt-to-equity ratio of 2.55.

Affirm (NASDAQ:AFRM - Get Free Report) last issued its quarterly earnings data on Thursday, August 28th. The company reported $0.20 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.11 by $0.09. The firm had revenue of $876.42 million during the quarter, compared to analysts' expectations of $834.94 million. Affirm had a net margin of 1.62% and a return on equity of 1.80%. The business's revenue for the quarter was up 32.9% on a year-over-year basis. During the same quarter in the previous year, the company earned ($0.14) earnings per share. Affirm has set its FY 2026 guidance at EPS. Q1 2026 guidance at EPS. On average, analysts forecast that Affirm Holdings, Inc. will post -0.18 EPS for the current year.

Insider Activity

In other news, CFO Robert O'hare sold 77,800 shares of the company's stock in a transaction that occurred on Friday, August 22nd. The shares were 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 Securities & Exchange Commission, which is available at the SEC website. Also, COO Michael Linford sold 184,200 shares of the company's stock in a transaction that occurred on Friday, August 22nd. The shares were sold at an average price of $80.09, for a total transaction of $14,752,578.00. Following the completion of the transaction, the chief operating officer owned 109,840 shares of the company's stock, valued at $8,797,085.60. This trade represents a 62.64% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 1,260,497 shares of company stock valued at $101,241,354. 11.82% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Huntington National Bank boosted its holdings in Affirm by 634.0% during the second quarter. Huntington National Bank now owns 389 shares of the company's stock worth $27,000 after purchasing an additional 336 shares during the last quarter. SouthState Corp boosted its holdings in Affirm by 190.5% during the second quarter. SouthState Corp now owns 427 shares of the company's stock worth $30,000 after purchasing an additional 280 shares during the last quarter. Blume Capital Management Inc. boosted its holdings in Affirm by 468.8% during the second quarter. Blume Capital Management Inc. now owns 455 shares of the company's stock worth $31,000 after purchasing an additional 375 shares during the last quarter. Allworth Financial LP boosted its holdings in Affirm by 63.7% during the first quarter. Allworth Financial LP now owns 563 shares of the company's stock worth $27,000 after purchasing an additional 219 shares during the last quarter. Finally, UMB Bank n.a. boosted its holdings in Affirm by 86.6% during the second quarter. UMB Bank n.a. now owns 569 shares of the company's stock worth $39,000 after purchasing an additional 264 shares during the last quarter. Institutional investors and hedge funds 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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