Affirm (NASDAQ:AFRM) Shares Down 6.9% - Time to Sell?

Key Points

• Affirm shares fell 6.9% to around $66.81 in midday trading, with volume significantly below the stock’s average daily level.
• Analysts remain broadly positive, with a “Moderate Buy” consensus from 32 analysts and an average price target of $98.78, well above the current share price.
• The company reported strong quarterly EPS of $4.62 versus a $0.35 consensus estimate, while revenue rose 33.1% year over year to $1.07 billion; however, insiders sold roughly $25 million of stock over the past three months.

Affirm Holdings, Inc. (NASDAQ:AFRM - Get Free Report) fell 6.9% during trading on Wednesday . The company traded as low as $69.83 and last traded at $66.8090. Approximately 315,223 shares were traded during mid-day trading, a decline of 94% from the average daily volume of 5,277,127 shares. The stock had previously closed at $71.77.

Analyst Ratings Changes

AFRM has been the topic of several recent research reports. The Goldman Sachs Group boosted their target price on Affirm from $106.00 to $115.00 and gave the stock a "buy" rating in a report on Monday, August 31st. Citigroup reissued a "market outperform" rating on shares of Affirm in a research note on Friday, August 28th. Deutsche Bank Aktiengesellschaft raised their target price on Affirm from $80.00 to $85.00 and gave the stock a "buy" rating in a research note on Thursday, June 25th. BMO Capital Markets reiterated an "outperform" rating on shares of Affirm in a report on Wednesday, September 9th. Finally, Compass Point set a $100.00 price objective on shares of Affirm in a report on Friday, July 17th. Twenty-four research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Affirm presently has a consensus rating of "Moderate Buy" and an average target price of $98.78.

Affirm Trading Down 4.2%

The company's 50 day moving average price is $74.25 and its 200 day moving average price is $67.19. The company has a debt-to-equity ratio of 1.82, a current ratio of 11.80 and a quick ratio of 11.80. The firm has a market cap of $23.20 billion, a PE ratio of 12.47, a price-to-earnings-growth ratio of 2.91 and a beta of 3.61.

Affirm (NASDAQ:AFRM - Get Free Report) last issued its quarterly earnings results on Thursday, August 27th. The company reported $4.62 earnings per share for the quarter, topping the consensus estimate of $0.35 by $4.27. Affirm had a return on equity of 47.91% and a net margin of 45.29%.The company had revenue of $1.07 billion for the quarter, compared to the consensus estimate of $1.11 billion. During the same quarter in the prior year, the business earned $0.20 EPS. Affirm's revenue was up 33.1% on a year-over-year basis. As a group, analysts forecast that Affirm Holdings, Inc. will post 1.87 EPS for the current fiscal year.

Insider Activity

In other Affirm news, CAO Siphelele Jiyane sold 26,980 shares of the business's stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $72.19, for a total value of $1,947,686.20. Following the completion of the sale, the chief accounting officer owned 188,711 shares in the company, valued at approximately $13,623,047.09. The trade was a 12.51% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Katherine Adkins sold 41,664 shares of the stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $75.53, for a total transaction of $3,146,881.92. Following the sale, the insider owned 152,439 shares of the company's stock, valued at approximately $11,513,717.67. This represents a 21.46% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 314,527 shares of company stock valued at $24,978,716. Insiders own 11.01% of the company's stock.

Hedge Funds Weigh In On Affirm

Large investors have recently modified their holdings of the business. QRG Capital Management Inc. boosted its position in shares of Affirm by 3.6% during the first quarter. QRG Capital Management Inc. now owns 9,684 shares of the company's stock valued at $444,000 after purchasing an additional 340 shares in the last quarter. IFP Advisors Inc lifted its position in Affirm by 9.2% during the second quarter. IFP Advisors Inc now owns 4,080 shares of the company's stock valued at $333,000 after buying an additional 343 shares during the period. ABN Amro Investment Solutions boosted its holdings in shares of Affirm by 3.6% during the 1st quarter. ABN Amro Investment Solutions now owns 10,931 shares of the company's stock valued at $501,000 after buying an additional 378 shares in the last quarter. Parallel Advisors LLC grew its position in shares of Affirm by 11.9% in the 1st quarter. Parallel Advisors LLC now owns 4,497 shares of the company's stock worth $206,000 after buying an additional 480 shares during the period. Finally, GraniteShares Advisors LLC increased its stake in shares of Affirm by 6.8% in the 1st quarter. GraniteShares Advisors LLC now owns 8,442 shares of the company's stock worth $387,000 after acquiring an additional 537 shares in the last quarter. 69.29% of the stock is owned by hedge funds and other institutional investors.

Affirm Company Profile

Affirm Holdings, Inc is a financial technology company that provides flexible payment options for consumers and commerce-enabling tools for merchants. Its core business is buy now, pay later financing, allowing eligible shoppers to pay for purchases over time through fixed installment plans, with terms and pricing that vary by transaction and consumer qualification.

Affirm's products include point-of-sale financing integrated into merchant checkout experiences, the Affirm app and marketplace, and the Affirm Card, which is designed to let users convert eligible purchases into installment plans.

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