Affirm (NASDAQ:AFRM) Shares Gap Up – Here’s Why

Shares of Affirm Holdings, Inc. (NASDAQ:AFRM) gapped up before the market opened on Wednesday . The stock had previously closed at $46.77, but opened at $49.46. Affirm shares last traded at $47.69, with a volume of 2,728,044 shares traded.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on AFRM. Deutsche Bank Aktiengesellschaft boosted their target price on shares of Affirm from $45.00 to $75.00 and gave the company a “hold” rating in a research report on Monday, December 16th. The Goldman Sachs Group raised their target price on shares of Affirm from $78.00 to $90.00 and gave the stock a “buy” rating in a report on Monday, February 10th. Wells Fargo & Company boosted their price target on Affirm from $70.00 to $85.00 and gave the company an “overweight” rating in a research note on Friday, February 7th. UBS Group raised their price objective on Affirm from $46.00 to $62.00 and gave the stock a “neutral” rating in a research note on Friday, February 7th. Finally, Jefferies Financial Group upgraded Affirm from a “hold” rating to a “buy” rating and upped their target price for the company from $70.00 to $82.00 in a research report on Thursday, December 19th. Nine investment analysts have rated the stock with a hold rating, ten have given a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $70.24.

Affirm Price Performance

The business has a 50-day moving average of $62.55 and a two-hundred day moving average of $55.56. The company has a current ratio of 11.26, a quick ratio of 11.26 and a debt-to-equity ratio of 2.68. The firm has a market cap of $14.92 billion, a P/E ratio of -72.15 and a beta of 3.63.

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

Insider Buying and Selling at Affirm

In related news, Director Noel Bertram Watson sold 2,500 shares of the stock in a transaction on Monday, December 16th. The stock was sold at an average price of $72.05, for a total value of $180,125.00. Following the completion of the sale, the director now directly owns 41,497 shares in the company, valued at $2,989,858.85. This represents a 5.68 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Keith Rabois sold 16,086 shares of the firm’s stock in a transaction on Thursday, January 2nd. The stock was sold at an average price of $62.32, for a total value of $1,002,479.52. Following the transaction, the director now directly owns 93,694 shares of the company’s stock, valued at approximately $5,839,010.08. This represents a 14.65 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 62,301 shares of company stock worth $3,986,218. 12.41% of the stock is currently owned by company insiders.

Institutional Trading of Affirm

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Wealthedge Investment Advisors LLC acquired a new position in shares of Affirm in the 4th quarter worth approximately $468,000. Leigh Baldwin & CO. LLC acquired a new position in Affirm in the fourth quarter valued at $210,000. Challenger Wealth Management bought a new stake in Affirm during the fourth quarter valued at $244,000. Forum Financial Management LP grew its holdings in Affirm by 16.5% during the 4th quarter. Forum Financial Management LP now owns 7,985 shares of the company’s stock worth $486,000 after acquiring an additional 1,128 shares during the period. Finally, GF Fund Management CO. LTD. bought a new position in shares of Affirm in the 4th quarter worth about $5,349,000. Institutional investors and hedge funds 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.