Affirm (NASDAQ:AFRM) Shares Gap Down – Here’s What Happened

Shares of Affirm Holdings, Inc. (NASDAQ:AFRM) gapped down before the market opened on Monday . The stock had previously closed at $50.08, but opened at $46.51. Affirm shares last traded at $44.41, with a volume of 5,465,972 shares changing hands.

Analyst Upgrades and Downgrades

A number of research firms have commented on AFRM. Needham & Company LLC reaffirmed a “hold” rating on shares of Affirm in a research report on Friday, February 7th. Morgan Stanley upped their target price on shares of Affirm from $39.00 to $55.00 and gave the company an “equal weight” rating in a research report on Tuesday, January 28th. JMP Securities upped their target price on shares of Affirm from $78.00 to $85.00 and gave the company a “market outperform” rating in a research report on Friday, February 7th. JPMorgan Chase & Co. upped their target price on shares of Affirm from $56.00 to $74.00 and gave the company an “overweight” rating in a research report on Monday, December 2nd. Finally, Deutsche Bank Aktiengesellschaft upped their target price on shares of Affirm from $45.00 to $75.00 and gave the company a “hold” rating in a research report on Monday, December 16th. Nine research analysts have rated the stock with a hold rating, ten have issued a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat.com, Affirm has a consensus rating of “Moderate Buy” and an average target price of $70.24.

Affirm Price Performance

The stock’s 50 day moving average is $61.91 and its two-hundred day moving average is $55.96. The company has a debt-to-equity ratio of 2.68, a current ratio of 11.26 and a quick ratio of 11.26. The stock has a market capitalization of $14.29 billion, a PE ratio of -68.90 and a beta of 3.63.

Affirm (NASDAQ:AFRM) last announced its quarterly earnings results on Thursday, February 6th. The company reported $0.23 EPS for the quarter, beating the consensus estimate of ($0.21) by $0.44. Affirm had a negative net margin of 7.10% and a negative return on equity of 7.25%. As a group, sell-side analysts forecast that Affirm Holdings, Inc. will post -0.18 earnings per share for the current fiscal year.

Insider Buying and Selling at Affirm

In other news, CFO Robert O’hare sold 6,541 shares of the stock in a transaction that occurred on Thursday, January 2nd. The stock was sold at an average price of $62.28, for a total value of $407,373.48. Following the completion of the sale, the chief financial officer now directly owns 2,963 shares of the company’s stock, valued at approximately $184,535.64. This represents a 68.82 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Keith Rabois sold 16,086 shares of the stock in a transaction that occurred on Thursday, January 2nd. The shares were sold at an average price of $62.32, for a total value of $1,002,479.52. Following the completion of the sale, the director now directly owns 93,694 shares of the company’s stock, valued at $5,839,010.08. The trade was a 14.65 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 59,801 shares of company stock worth $3,806,093 over the last three months. Insiders own 12.41% of the company’s stock.

Institutional Investors Weigh In On Affirm

Large investors have recently modified their holdings of the company. Capital Research Global Investors lifted its holdings in shares of Affirm by 2.0% during the fourth quarter. Capital Research Global Investors now owns 24,264,396 shares of the company’s stock worth $1,477,747,000 after purchasing an additional 470,409 shares during the period. Vanguard Group Inc. lifted its holdings in shares of Affirm by 3.4% during the fourth quarter. Vanguard Group Inc. now owns 21,815,563 shares of the company’s stock worth $1,328,568,000 after purchasing an additional 716,574 shares during the period. Capital World Investors lifted its holdings in shares of Affirm by 0.4% during the fourth quarter. Capital World Investors now owns 18,339,165 shares of the company’s stock worth $1,116,861,000 after purchasing an additional 72,582 shares during the period. Durable Capital Partners LP lifted its holdings in shares of Affirm by 97.3% during the fourth quarter. Durable Capital Partners LP now owns 5,858,283 shares of the company’s stock worth $356,769,000 after purchasing an additional 2,888,827 shares during the period. Finally, Jericho Capital Asset Management L.P. lifted its holdings in shares of Affirm by 11.6% during the fourth quarter. Jericho Capital Asset Management L.P. now owns 5,198,039 shares of the company’s stock worth $316,561,000 after purchasing an additional 538,892 shares during the period. 69.29% of the stock is owned by institutional investors and hedge funds.

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.