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

Affirm Holdings, Inc. (NASDAQ:AFRM)’s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $72.86, but opened at $70.24. Affirm shares last traded at $68.78, with a volume of 1,980,471 shares changing hands.

Analyst Ratings Changes

A number of research analysts recently issued reports on the company. Morgan Stanley raised Affirm from an “underweight” rating to an “equal weight” rating and lifted their price target for the company from $22.00 to $37.00 in a report on Wednesday, October 9th. The Goldman Sachs Group boosted their target price on shares of Affirm from $57.00 to $78.00 and gave the stock a “buy” rating in a research note on Monday, December 2nd. Jefferies Financial Group raised shares of Affirm from a “hold” rating to a “buy” rating and increased their price target for the company from $70.00 to $82.00 in a research note on Thursday. Mizuho boosted their price objective on shares of Affirm from $65.00 to $69.00 and gave the stock an “outperform” rating in a research report on Tuesday, November 19th. Finally, Wells Fargo & Company increased their price objective on Affirm from $52.00 to $55.00 and gave the company an “overweight” rating in a research report on Friday, November 8th. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating and nine have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, Affirm has an average rating of “Hold” and a consensus price target of $59.80.

Affirm Stock Down 10.7 %

The firm’s 50-day moving average is $56.66 and its 200 day moving average is $41.50. The firm has a market capitalization of $19.89 billion, a P/E ratio of -44.61 and a beta of 3.66. 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 posted its quarterly earnings data on Thursday, November 7th. The company reported ($0.31) earnings per share 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 analysts’ expectations of $661.39 million. During the same period in the prior year, the firm earned ($0.57) earnings per share. As a group, equities research analysts predict that Affirm Holdings, Inc. will post -0.53 EPS for the current fiscal year.

Insider Activity

In other news, CFO Robert O’hare sold 100,938 shares of the company’s stock in a transaction that occurred on Monday, November 11th. The stock was sold at an average price of $55.00, for a total transaction of $5,551,590.00. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, COO Michael Linford sold 400,000 shares of the firm’s stock in a transaction on Thursday, December 12th. The shares were sold at an average price of $68.99, for a total transaction of $27,596,000.00. Following the completion of the transaction, the chief operating officer now directly owns 85,420 shares of the company’s stock, valued at $5,893,125.80. This represents a 82.40 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 1,300,851 shares of company stock worth $84,875,518 over the last ninety days. Insiders own 12.41% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. ORG Wealth Partners LLC acquired a new stake in Affirm in the 3rd quarter valued at about $29,000. Ridgewood Investments LLC bought a new stake in Affirm in the second quarter valued at approximately $27,000. Advisors Asset Management Inc. lifted its position in shares of Affirm by 168.2% in the third quarter. Advisors Asset Management Inc. now owns 1,070 shares of the company’s stock valued at $44,000 after buying an additional 671 shares during the last quarter. Venturi Wealth Management LLC boosted its stake in shares of Affirm by 200.5% during the 3rd quarter. Venturi Wealth Management LLC now owns 1,097 shares of the company’s stock worth $45,000 after acquiring an additional 732 shares during the period. Finally, Allspring Global Investments Holdings LLC increased its holdings in shares of Affirm by 82.4% during the 2nd quarter. Allspring Global Investments Holdings LLC now owns 1,195 shares of the company’s stock worth $36,000 after acquiring an additional 540 shares during the last quarter. Institutional investors own 69.29% of the company’s stock.

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.