Affirm (NASDAQ:AFRM) Shares Gap Down – Should You Sell?

Affirm Holdings, Inc. (NASDAQ:AFRM)’s share price gapped down before the market opened on Tuesday . The stock had previously closed at $61.86, but opened at $58.50. Affirm shares last traded at $56.33, with a volume of 1,964,015 shares.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on the stock. JMP Securities lifted their price objective 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. Compass Point upgraded shares of Affirm from a “sell” rating to a “neutral” rating and raised their price target for the company from $20.00 to $61.00 in a research note on Tuesday, January 28th. Jefferies Financial Group upgraded Affirm from a “hold” rating to a “buy” rating and boosted their price objective for the stock from $70.00 to $82.00 in a research report on Thursday, December 19th. Morgan Stanley increased their price objective on Affirm from $39.00 to $55.00 and gave the stock an “equal weight” rating in a report on Tuesday, January 28th. Finally, Citizens Jmp raised Affirm from a “hold” rating to a “strong-buy” rating in a research note on Friday, December 20th. Nine analysts have rated the stock with a hold rating, ten have assigned a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $70.24.

Affirm Trading Down 5.1 %

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 capitalization of $18.67 billion, a price-to-earnings ratio of -91.81 and a beta of 3.66. The firm’s 50 day moving average is $64.26 and its 200 day moving average is $54.67.

Affirm (NASDAQ:AFRM) last released its quarterly earnings data 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 return on equity of 7.25% and a negative net margin of 7.10%. Equities analysts forecast that Affirm Holdings, Inc. will post -0.18 earnings per share for the current year.

Insider Transactions at Affirm

In related news, Director Christa S. Quarles sold 5,000 shares of the firm’s stock in a transaction that occurred on Friday, February 14th. The shares were sold at an average price of $80.00, for a total value of $400,000.00. Following the completion of the transaction, the director now owns 137,325 shares of the company’s stock, valued at approximately $10,986,000. This trade represents a 3.51 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Noel Bertram Watson sold 2,500 shares of the business’s stock in a transaction on Monday, December 16th. The shares were sold at an average price of $72.05, for a total transaction of $180,125.00. Following the sale, the director now directly owns 41,497 shares in the company, valued at approximately $2,989,858.85. This trade represents a 5.68 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 555,670 shares of company stock valued at $38,385,393 over the last ninety days. Corporate insiders own 12.41% of the company’s stock.

Institutional Investors Weigh In On Affirm

Several hedge funds have recently bought and sold shares of the business. Raymond James & Associates increased its holdings in shares of Affirm by 27.9% in the 3rd quarter. Raymond James & Associates now owns 88,988 shares of the company’s stock valued at $3,632,000 after purchasing an additional 19,394 shares during the period. Private Advisor Group LLC increased its stake in Affirm by 8.1% in the 3rd quarter. Private Advisor Group LLC now owns 10,528 shares of the company’s stock valued at $430,000 after buying an additional 792 shares during the period. International Assets Investment Management LLC acquired a new position in Affirm in the 3rd quarter valued at approximately $731,000. US Bancorp DE lifted its position in Affirm by 9.0% in the 3rd quarter. US Bancorp DE now owns 17,065 shares of the company’s stock worth $697,000 after buying an additional 1,410 shares in the last quarter. Finally, Stephens Inc. AR acquired a new stake in shares of Affirm during the 3rd quarter valued at $314,000. 69.29% of the stock is owned by hedge funds and other institutional investors.

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.