Affirm (NASDAQ:AFRM) Shares Gap Up – Should You Buy?

Affirm Holdings, Inc. (NASDAQ:AFRM)’s share price gapped up before the market opened on Friday . The stock had previously closed at $56.76, but opened at $59.04. Affirm shares last traded at $57.10, with a volume of 1,417,063 shares traded.

Wall Street Analyst Weigh In

Several brokerages have weighed in on AFRM. JPMorgan Chase & Co. raised their price objective on Affirm from $56.00 to $74.00 and gave the company an “overweight” rating in a research note on Monday, December 2nd. Jefferies Financial Group raised Affirm from a “hold” rating to a “buy” rating and upped their target price for the company from $70.00 to $82.00 in a report on Thursday, December 19th. The Goldman Sachs Group lifted their price target on Affirm from $57.00 to $78.00 and gave the stock a “buy” rating in a report on Monday, December 2nd. Mizuho upped their price objective on Affirm from $65.00 to $69.00 and gave the company an “outperform” rating in a research note on Tuesday, November 19th. Finally, JMP Securities raised shares of Affirm from a “market perform” rating to an “outperform” rating and set a $78.00 price target on the stock in a report on Friday, December 20th. One research analyst has rated the stock with a sell rating, seven have issued a hold rating, ten have issued a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $61.88.

Affirm Stock Down 1.2 %

The company’s 50 day simple moving average is $64.09 and its 200-day simple moving average is $46.83. The firm has a market capitalization of $17.62 billion, a PE ratio of -39.49 and a beta of 3.67. The company has a debt-to-equity ratio of 2.50, a quick ratio of 12.60 and a current ratio of 12.60.

Affirm (NASDAQ:AFRM) last issued its quarterly earnings data on Thursday, November 7th. The company reported ($0.31) EPS for the quarter, topping the consensus estimate of ($0.36) by $0.05. Affirm had a negative return on equity of 12.57% and a negative net margin of 17.67%. The company had revenue of $698.48 million during the quarter, compared to analyst estimates of $661.39 million. During the same quarter in the previous year, the firm earned ($0.57) earnings per share. On average, analysts forecast that Affirm Holdings, Inc. will post -0.62 EPS for the current fiscal year.

Insider Activity at Affirm

In other Affirm news, Director Noel Bertram Watson sold 2,500 shares of Affirm stock in a transaction that occurred on Monday, December 16th. The stock was sold at an average price of $72.05, for a total value of $180,125.00. Following the transaction, the director now directly owns 41,497 shares of the company’s stock, valued at $2,989,858.85. The trade was a 5.68 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, President Libor Michalek sold 6,629 shares of the firm’s stock in a transaction that occurred on Monday, December 2nd. The stock was sold at an average price of $72.08, for a total transaction of $477,818.32. Following the completion of the transaction, the president now owns 160,601 shares in the company, valued at $11,576,120.08. This represents a 3.96 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 1,323,478 shares of company stock valued at $86,285,371 over the last 90 days. 12.41% of the stock is owned by insiders.

Institutional Investors Weigh In On Affirm

Large investors have recently made changes to their positions in the business. Spyglass Capital Management LLC boosted its holdings in Affirm by 9.3% in the third quarter. Spyglass Capital Management LLC now owns 2,348,095 shares of the company’s stock valued at $95,849,000 after acquiring an additional 200,449 shares in the last quarter. Charles Schwab Investment Management Inc. increased its position in shares of Affirm by 44.0% during the third quarter. Charles Schwab Investment Management Inc. now owns 2,203,210 shares of the company’s stock valued at $89,935,000 after buying an additional 672,883 shares during the period. Dragoneer Investment Group LLC bought a new position in Affirm in the second quarter worth about $45,219,000. Artemis Investment Management LLP lifted its holdings in Affirm by 2.1% in the fourth quarter. Artemis Investment Management LLP now owns 770,245 shares of the company’s stock worth $46,908,000 after buying an additional 15,517 shares during the period. Finally, Bank of Montreal Can grew its holdings in shares of Affirm by 269.7% during the 3rd quarter. Bank of Montreal Can now owns 724,336 shares of the company’s stock worth $29,814,000 after acquiring an additional 528,400 shares during the period. 69.29% of the stock is currently owned by institutional investors.

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.