Affirm (NASDAQ:AFRM) Shares Gap Down – What’s Next?

Affirm Holdings, Inc. (NASDAQ:AFRM) gapped down before the market opened on Monday . The stock had previously closed at $52.57, but opened at $50.22. Affirm shares last traded at $50.93, with a volume of 1,206,707 shares traded.

Wall Street Analyst Weigh In

A number of equities analysts have commented on AFRM shares. Bank of America boosted their price objective on shares of Affirm from $76.00 to $80.00 and gave the stock a “buy” rating in a report on Friday, May 9th. JPMorgan Chase & Co. decreased their price target on shares of Affirm from $74.00 to $69.00 and set an “overweight” rating for the company in a report on Friday, May 9th. Compass Point upgraded Affirm from a “neutral” rating to a “buy” rating and upped their price objective for the stock from $61.00 to $64.00 in a research note on Wednesday, March 19th. Morgan Stanley decreased their target price on shares of Affirm from $65.00 to $60.00 and set an “equal weight” rating for the company in a research report on Tuesday, May 6th. Finally, Barclays raised their price target on Affirm from $45.00 to $53.00 and gave the company an “overweight” rating in a report on Monday, May 12th. Seven equities research analysts have rated the stock with a hold rating, fifteen have assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $65.05.

Affirm Price Performance

The stock has a 50 day moving average of $46.77 and a two-hundred day moving average of $57.19. 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 stock has a market cap of $16.05 billion, a PE ratio of -76.52 and a beta of 3.66.

Affirm (NASDAQ:AFRM) last announced its quarterly earnings data on Thursday, May 8th. The company reported $0.01 EPS for the quarter, topping analysts’ consensus estimates of ($0.09) by $0.10. The firm had revenue of $783.14 million during the quarter, compared to analyst estimates of $782.98 million. Affirm had a negative return on equity of 7.25% and a negative net margin of 7.10%. The business’s quarterly revenue was up 35.9% compared to the same quarter last year. During the same period last year, the company posted ($0.43) EPS. Equities analysts anticipate that Affirm Holdings, Inc. will post -0.18 EPS for the current year.

Insider Activity at Affirm

In other news, Director Keith Rabois sold 16,089 shares of the firm’s stock in a transaction on Thursday, May 1st. The shares were sold at an average price of $51.00, for a total transaction of $820,539.00. Following the transaction, the director now owns 29,343 shares in the company, valued at approximately $1,496,493. This trade represents a 35.41% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Noel Bertram Watson sold 2,500 shares of the business’s stock in a transaction dated Monday, March 17th. The stock was sold at an average price of $45.78, for a total value of $114,450.00. Following the completion of the sale, the director now directly owns 38,997 shares of the company’s stock, valued at $1,785,282.66. This represents a 6.02% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 50,765 shares of company stock valued at $2,694,694. Insiders own 12.41% of the company’s stock.

Institutional Investors Weigh In On Affirm

A number of hedge funds have recently bought and sold shares of the company. Focus Partners Wealth bought a new stake in Affirm during the 1st quarter valued at approximately $243,000. Bayforest Capital Ltd lifted its holdings in shares of Affirm by 695.8% during the first quarter. Bayforest Capital Ltd now owns 29,963 shares of the company’s stock worth $1,354,000 after buying an additional 26,198 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Affirm by 8.5% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 720,730 shares of the company’s stock worth $32,570,000 after buying an additional 56,401 shares during the last quarter. Empowered Funds LLC boosted its position in shares of Affirm by 90.7% in the first quarter. Empowered Funds LLC now owns 16,852 shares of the company’s stock valued at $762,000 after acquiring an additional 8,014 shares during the period. Finally, Panoramic Capital LLC acquired a new stake in shares of Affirm in the first quarter worth $685,000. 69.29% of the stock is currently owned by 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.