Affirm (NASDAQ:AFRM) Shares Down 8.6% on Insider Selling

Key Points

• Affirm's stock fell 8.6% after insider sales, including a sale of 6,489 shares by Katherine Adkins for $486,675, reducing her ownership by 5.41%.
• Analysts have a consensus rating of "Moderate Buy" on Affirm, with a price target of $68.09, despite recent downgrades by some firms.
• Affirm's earnings report beat expectations, showing a revenue increase of 35.9% year-over-year, although it still reported a negative EPS of $0.01.

Affirm Holdings, Inc. (NASDAQ:AFRM - Get Free Report)'s stock price fell 8.6% on Friday following insider selling activity. The stock traded as low as $72.61 and last traded at $72.14. 6,013,643 shares traded hands during mid-day trading, a decline of 16% from the average session volume of 7,168,610 shares. The stock had previously closed at $78.96.

Specifically, insider Katherine Adkins sold 6,489 shares of the business's stock in a transaction on Wednesday, August 6th. The shares were sold at an average price of $75.00, for a total value of $486,675.00. Following the completion of the transaction, the insider directly owned 113,400 shares in the company, valued at $8,505,000. The trade was a 5.41% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CAO Siphelele Jiyane sold 15,871 shares of the business's stock in a transaction on Monday, August 4th. The shares were sold at an average price of $75.00, for a total transaction of $1,190,325.00. Following the completion of the transaction, the chief accounting officer owned 242,192 shares of the company's stock, valued at approximately $18,164,400. This represents a 6.15% decrease in their ownership of the stock. The disclosure for this sale can be found here. In related news, insider Katherine Adkins sold 1,329 shares of the business's stock in a transaction on Tuesday, August 5th. The shares were sold at an average price of $75.00, for a total value of $99,675.00. Following the completion of the sale, the insider owned 113,400 shares of the company's stock, valued at approximately $8,505,000. The trade was a 1.16% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on AFRM. Deutsche Bank Aktiengesellschaft began coverage on shares of Affirm in a report on Thursday, July 17th. They issued a "buy" rating and a $78.00 price target for the company. Wall Street Zen raised shares of Affirm from a "hold" rating to a "buy" rating in a report on Saturday. Royal Bank Of Canada boosted their price target on shares of Affirm from $70.00 to $75.00 and gave the stock a "sector perform" rating in a report on Tuesday, July 8th. UBS Group dropped their target price on shares of Affirm from $62.00 to $56.00 and set a "neutral" rating for the company in a report on Friday, May 9th. Finally, The Goldman Sachs Group upped their target price on shares of Affirm from $45.00 to $58.00 and gave the stock a "buy" rating in a report on Monday, May 12th. Ten equities research analysts have rated the stock with a hold rating, nineteen have issued a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $68.09.

Affirm Price Performance

The stock's 50-day simple moving average is $66.53 and its 200 day simple moving average is $58.00. The company has a quick ratio of 11.47, a current ratio of 11.47 and a debt-to-equity ratio of 2.55. The company has a market cap of $25.14 billion, a price-to-earnings ratio of -370.09, a PEG ratio of 2.70 and a beta of 3.63.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Allworth Financial LP lifted its position in Affirm by 63.7% in the first 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 lifted its position in shares of 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 in the last quarter. Itau Unibanco Holding S.A. acquired a new stake in shares of Affirm during the fourth quarter worth about $28,000. SouthState Corp lifted its position in shares of 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 in the last quarter. Finally, Blume Capital Management Inc. lifted its position in shares of 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 in the last quarter. Institutional investors and hedge funds 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.