Affirm (NASDAQ:AFRM) Stock Falls 7.4% on Analyst Downgrade

by · The Cerbat Gem

Affirm Holdings, Inc. (NASDAQ:AFRM – Get Free Report)’s share price fell 7.4% on Wednesday after The Goldman Sachs Group lowered their price target on the stock from $115.00 to $103.00. The Goldman Sachs Group currently has a buy rating on the stock. Affirm traded as low as $73.80 and last traded at $72.1260. 464,415 shares were traded during trading, a decline of 91% from the average session volume of 5,172,717 shares. The stock had previously closed at $77.89.

A number of other research analysts have also weighed in on the stock. Loop Capital started coverage on shares of Affirm in a report on Wednesday, September 9th. They issued a “buy” rating and a $105.00 target price for the company. Susquehanna upped their target price on Affirm from $105.00 to $110.00 and gave the company a “positive” rating in a research note on Friday, August 28th. TD Cowen reduced their price target on shares of Affirm from $124.00 to $110.00 and set a “buy” rating on the stock in a research note on Tuesday, October 6th. JPMorgan Chase & Co. boosted their price objective on shares of Affirm from $90.00 to $105.00 and gave the company an “overweight” rating in a research report on Friday, August 28th. Finally, Cantor Fitzgerald upped their target price on shares of Affirm from $88.00 to $97.00 and gave the stock an “overweight” rating in a research note on Monday, August 31st. Twenty-four equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $97.69.

View Our Latest Report on Affirm

Insiders Place Their Bets

In other Affirm news, CAO Siphelele Jiyane sold 26,980 shares of the company’s stock in a transaction 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 directly owned 188,711 shares in the company, valued at approximately $13,623,047.09. This represents a 12.51% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Michael Linford sold 79,219 shares of the stock in a transaction on Friday, August 28th. The stock was sold at an average price of $90.01, for a total value of $7,130,502.19. Following the transaction, the chief operating officer directly owned 120,713 shares in the company, valued at $10,865,377.13. The trade was a 39.62% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 214,527 shares of company stock worth $16,974,716. 11.01% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. TD Waterhouse Canada Inc. boosted its holdings in shares of Affirm by 386.5% in the 2nd quarter. TD Waterhouse Canada Inc. now owns 51,844 shares of the company’s stock valued at $4,228,000 after buying an additional 41,187 shares in the last quarter. SteelPeak Wealth LLC bought a new position in shares of Affirm during the 1st quarter worth approximately $935,000. Dimensional Fund Advisors LP raised its stake in shares of Affirm by 11.8% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,574,660 shares of the company’s stock worth $72,100,000 after acquiring an additional 166,252 shares in the last quarter. Nykredit A S bought a new position in shares of Affirm during the 2nd quarter worth approximately $7,170,000. Finally, Royal Bank of Canada lifted its position in Affirm by 8.4% during the first quarter. Royal Bank of Canada now owns 318,783 shares of the company’s stock valued at $14,607,000 after acquiring an additional 24,583 shares during the last quarter. Hedge funds and other institutional investors own 69.29% of the company’s stock.

Affirm Price Performance

The stock’s 50-day moving average is $73.85 and its 200 day moving average is $69.90. 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 company has a market cap of $24.36 billion, a PE ratio of 13.05, a PEG ratio of 3.16 and a beta of 3.82.

Affirm (NASDAQ:AFRM – Get Free Report) last released its quarterly earnings results on Thursday, August 27th. The company reported $4.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.35 by $4.27. Affirm had a net margin of 45.29% and a return on equity of 47.91%. The business had revenue of $1.07 billion for the quarter, compared to analyst estimates of $1.11 billion. During the same period in the previous year, the company earned $0.20 earnings per share. The business’s revenue for the quarter was up 33.1% on a year-over-year basis. On average, equities analysts anticipate that Affirm Holdings, Inc. will post 1.91 earnings per share for the current fiscal year.

Affirm Company Profile

(Get Free Report)

Affirm Holdings, Inc (NASDAQ: AFRM) operates a digital commerce and financial services platform that enables consumers to pay for purchases over time. Its point-of-sale financing products allow eligible customers to use installment loans, including both short-term and longer-duration payment options, with terms and costs disclosed before purchase.

Affirm’s services are offered through its merchant partners’ online and in-store checkout experiences, as well as through the Affirm app and website.

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