Affirm (NASDAQ:AFRM) Trading Down 4.7% - Here's Why

Key Points

• Affirm shares fell 4.7% to $74.14 in mid-day trading, with volume down 62% from the stock’s average daily level.
• Analyst sentiment remains broadly positive: 22 analysts rate the stock a Buy and eight rate it a Hold, producing a “Moderate Buy” consensus and an average price target of $98.84.
• Affirm reported strong quarterly earnings of $4.62 per share versus the $0.35 consensus estimate, while revenue rose 33.1% year over year to $1.07 billion, slightly below expectations.

Affirm Holdings, Inc. (NASDAQ:AFRM - Get Free Report) shares dropped 4.7% during mid-day trading on Monday . The stock traded as low as $71.23 and last traded at $74.14. 2,045,226 shares traded hands during mid-day trading, a decline of 62% from the average daily volume of 5,313,411 shares. The stock had previously closed at $77.76.

Wall Street Analyst Weigh In

AFRM has been the subject of a number of recent analyst reports. Royal Bank Of Canada raised their target price on Affirm from $80.00 to $96.00 and gave the company a "sector perform" rating in a report on Friday. Wolfe Research reissued an "outperform" rating on shares of Affirm in a research report on Friday. Stephens boosted their price objective on shares of Affirm from $55.00 to $75.00 and gave the company an "equal weight" rating in a research report on Friday, May 8th. Zacks Research lowered Affirm from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, August 25th. Finally, Cantor Fitzgerald reiterated an "overweight" rating and issued a $88.00 price target on shares of Affirm in a report on Friday. Twenty-two analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $98.84.

Affirm Stock Down 4.6%

The firm has a 50-day moving average of $77.45 and a 200 day moving average of $64.64. The stock has a market capitalization of $24.85 billion, a price-to-earnings ratio of 13.44, a price-to-earnings-growth ratio of 3.13 and a beta of 3.71. The company has a current ratio of 11.80, a quick ratio of 11.80 and a debt-to-equity ratio of 1.82.

Affirm (NASDAQ:AFRM - Get Free Report) last issued its quarterly earnings data on Thursday, August 27th. The company reported $4.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.35 by $4.27. The company had revenue of $1.07 billion during the quarter, compared to the consensus estimate of $1.11 billion. Affirm had a net margin of 45.29% and a return on equity of 47.91%. Affirm's revenue for the quarter was up 33.1% on a year-over-year basis. During the same quarter last year, the company earned $0.20 earnings per share. On average, sell-side analysts anticipate that Affirm Holdings, Inc. will post 1.75 earnings per share for the current year.

Insiders Place Their Bets

In related news, COO Michael Linford sold 100,000 shares of the firm's stock in a transaction on Friday, June 26th. The shares were sold at an average price of $80.04, for a total transaction of $8,004,000.00. Following the completion of the sale, the chief operating officer directly owned 117,984 shares of the company's stock, valued at approximately $9,443,439.36. This trade represents a 45.87% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 11.01% of the company's stock.

Institutional Trading of Affirm

Several large investors have recently modified their holdings of AFRM. SBI Securities Co. Ltd. raised its holdings in shares of Affirm by 83.4% during the fourth quarter. SBI Securities Co. Ltd. now owns 48,504 shares of the company's stock valued at $3,610,000 after buying an additional 22,054 shares during the last quarter. Geode Capital Management LLC grew its holdings in Affirm by 6.4% in the 4th quarter. Geode Capital Management LLC now owns 5,501,387 shares of the company's stock worth $408,433,000 after buying an additional 329,312 shares in the last quarter. SteelPeak Wealth LLC bought a new position in Affirm in the 1st quarter worth approximately $935,000. Legal & General Group Plc increased its position in Affirm by 25.4% in the 4th quarter. Legal & General Group Plc now owns 605,521 shares of the company's stock valued at $45,069,000 after acquiring an additional 122,584 shares during the period. Finally, PFA Pension Forsikringsaktieselskab acquired a new stake in Affirm in the 4th quarter valued at approximately $8,104,000. 69.29% of the stock is currently owned by institutional investors and hedge funds.

About Affirm

Affirm Holdings, Inc is a financial technology company that provides point-of-sale consumer lending and payments solutions for online and in-store purchases. Its core product is a buy-now-pay-later (BNPL) platform that enables consumers to split purchases into fixed, transparent installment loans with no hidden fees. Affirm offers a range of financing options through merchant integrations, a consumer-facing mobile app and virtual card capabilities, and tools for merchants to offer alternative payment methods at checkout.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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