Affirm (NASDAQ:AFRM) Shares Down 5.7% Following Analyst Downgrade

Affirm Holdings, Inc. (NASDAQ:AFRM)’s stock price was down 5.7% during mid-day trading on Tuesday after The Goldman Sachs Group lowered their price target on the stock from $90.00 to $56.00. The Goldman Sachs Group currently has a buy rating on the stock. Affirm traded as low as $45.15 and last traded at $45.25. Approximately 1,024,439 shares changed hands during trading, a decline of 87% from the average daily volume of 7,979,372 shares. The stock had previously closed at $47.96.

A number of other equities analysts also recently issued reports on the stock. Morgan Stanley raised their price objective on shares of Affirm from $39.00 to $55.00 and gave the stock an “equal weight” rating in a report on Tuesday, January 28th. Citizens Jmp raised Affirm from a “hold” rating to a “strong-buy” rating in a report on Friday, December 20th. William Blair assumed coverage on Affirm in a research report on Wednesday, January 15th. They set an “outperform” rating on the stock. Compass Point upgraded Affirm from a “sell” rating to a “neutral” rating and upped their price target for the stock from $20.00 to $61.00 in a research report on Tuesday, January 28th. Finally, Susquehanna cut Affirm from a “positive” rating to a “neutral” rating and set a $57.00 price objective on the stock. in a research report on Tuesday, January 21st. Eight equities research analysts have rated the stock with a hold rating, eleven have assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $68.41.

Insider Buying and Selling

In other Affirm 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 transaction of $407,373.48. Following the transaction, the chief financial officer now owns 2,963 shares in the company, valued at approximately $184,535.64. This represents a 68.82 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Keith Rabois sold 16,086 shares of the business’s 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 owns 93,694 shares of the company’s stock, valued at $5,839,010.08. This trade represents a 14.65 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 62,301 shares of company stock worth $3,920,543. 12.41% of the stock is owned by company insiders.

Hedge Funds Weigh In On Affirm

A number of large investors have recently added to or reduced their stakes in AFRM. Capital Research Global Investors boosted its holdings in Affirm by 2.0% in the 4th quarter. Capital Research Global Investors now owns 24,264,396 shares of the company’s stock worth $1,477,747,000 after buying an additional 470,409 shares during the last quarter. Vanguard Group Inc. lifted its holdings in Affirm by 3.4% in the 4th quarter. Vanguard Group Inc. now owns 21,815,563 shares of the company’s stock valued at $1,328,568,000 after purchasing an additional 716,574 shares in the last quarter. Capital World Investors raised its position in shares of Affirm by 0.4% in the fourth quarter. Capital World Investors now owns 18,339,165 shares of the company’s stock valued at $1,116,861,000 after buying an additional 72,582 shares during the last quarter. Durable Capital Partners LP lifted its stake in shares of Affirm by 97.3% in the fourth quarter. Durable Capital Partners LP now owns 5,858,283 shares of the company’s stock worth $356,769,000 after buying an additional 2,888,827 shares in the last quarter. Finally, Jericho Capital Asset Management L.P. boosted its position in 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 acquiring an additional 538,892 shares during the last quarter. 69.29% of the stock is currently owned by institutional investors and hedge funds.

Affirm Stock Performance

The company has a debt-to-equity ratio of 2.68, a quick ratio of 11.26 and a current ratio of 11.26. The firm’s 50 day moving average is $61.00 and its 200-day moving average is $55.95. The company has a market cap of $15.17 billion, a PE ratio of -73.40 and a beta of 3.63.

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

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.