Affirm (NASDAQ:AFRM) Stock Price Up 6.3% – Should You Buy?

Affirm Holdings, Inc. (NASDAQ:AFRM) shares shot up 6.3% on Wednesday . The company traded as high as $45.50 and last traded at $46.44. 951,305 shares traded hands during trading, a decline of 88% from the average session volume of 8,000,473 shares. The stock had previously closed at $43.70.

Wall Street Analyst Weigh In

A number of equities analysts have commented on AFRM shares. UBS Group upped their target price on shares of Affirm from $46.00 to $62.00 and gave the stock a “neutral” rating in a research note on Friday, February 7th. Barclays increased their price objective on Affirm from $75.00 to $85.00 and gave the stock an “overweight” rating in a research note on Monday, February 10th. Compass Point raised Affirm from a “neutral” rating to a “buy” rating and lifted their target price for the company from $61.00 to $64.00 in a research report on Wednesday. Needham & Company LLC reissued a “hold” rating on shares of Affirm in a research report on Friday, February 7th. Finally, JPMorgan Chase & Co. lifted their price objective on Affirm from $56.00 to $74.00 and gave the company an “overweight” rating in a report on Monday, December 2nd. Seven equities research analysts have rated the stock with a hold rating, twelve have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat.com, Affirm currently has an average rating of “Moderate Buy” and a consensus target price of $69.76.

Affirm Price Performance

The company has a quick ratio of 11.26, a current ratio of 11.26 and a debt-to-equity ratio of 2.68. The firm has a market cap of $15.25 billion, a PE ratio of -73.77 and a beta of 3.63. The stock has a 50 day moving average price of $60.78 and a two-hundred day moving average price of $55.89.

Affirm (NASDAQ:AFRM) last released its earnings results on Thursday, February 6th. The company reported $0.23 earnings per share for the quarter, topping 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, equities analysts expect that Affirm Holdings, Inc. will post -0.18 earnings per share for the current year.

Insider Buying and Selling at Affirm

In related news, Director Keith Rabois sold 16,086 shares of the firm’s stock in a transaction on Monday, February 3rd. The shares were sold at an average price of $60.12, for a total transaction of $967,090.32. Following the completion of the transaction, the director now owns 77,608 shares of the company’s stock, valued at $4,665,792.96. This trade represents a 17.17 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Robert O’hare sold 6,541 shares of the company’s stock in a transaction on Thursday, January 2nd. The shares were sold at an average price of $62.28, for a total transaction of $407,373.48. Following the completion of the sale, the chief financial officer now directly owns 2,963 shares in the company, valued at approximately $184,535.64. The trade was a 68.82 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 62,301 shares of company stock worth $3,920,543. 12.41% of the stock is currently owned by insiders.

Institutional Trading of Affirm

Hedge funds have recently modified their holdings of the stock. Quest Partners LLC acquired a new position in Affirm in the third quarter valued at approximately $391,000. Nordea Investment Management AB acquired a new position in shares of Affirm in the 4th quarter valued at $6,380,000. Charles Schwab Investment Management Inc. boosted its holdings in Affirm by 44.0% during the third quarter. Charles Schwab Investment Management Inc. now owns 2,203,210 shares of the company’s stock worth $89,935,000 after buying an additional 672,883 shares in the last quarter. Atreides Management LP acquired a new stake in Affirm during the third quarter valued at $20,404,000. Finally, Jacobs Levy Equity Management Inc. purchased a new position in Affirm in the third quarter valued at $414,000. Hedge funds and other 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.