Affirm (NASDAQ:AFRM) Shares Gap Down – Here’s What Happened

Affirm Holdings, Inc. (NASDAQ:AFRM) gapped down before the market opened on Monday . The stock had previously closed at $50.08, but opened at $46.51. Affirm shares last traded at $44.41, with a volume of 5,465,972 shares.

Analyst Upgrades and Downgrades

A number of research firms have commented on AFRM. Citizens Jmp raised Affirm from a “hold” rating to a “strong-buy” rating in a report on Friday, December 20th. Mizuho raised their target price on Affirm from $65.00 to $69.00 and gave the company an “outperform” rating in a report on Tuesday, November 19th. Compass Point raised Affirm from a “sell” rating to a “neutral” rating and raised their target price for the company from $20.00 to $61.00 in a report on Tuesday, January 28th. Wells Fargo & Company raised their target price on Affirm from $70.00 to $85.00 and gave the company an “overweight” rating in a report on Friday, February 7th. Finally, Bank of America raised their target price on Affirm from $50.00 to $74.00 and gave the company a “buy” rating in a report on Friday, November 22nd. Nine investment analysts have rated the stock with a hold rating, ten have assigned a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, Affirm presently has a consensus rating of “Moderate Buy” and an average price target of $70.24.

Affirm Stock Down 10.3 %

The firm has a market capitalization of $14.29 billion, a price-to-earnings ratio of -68.90 and a beta of 3.63. 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 50 day moving average price of $61.91 and a two-hundred day moving average price of $55.96.

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

Insider Buying and Selling

In related news, CFO Robert O’hare sold 6,541 shares of the company’s stock in a transaction 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 completion of the transaction, the chief financial officer now directly owns 2,963 shares in the company, valued at $184,535.64. This represents a 68.82 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Keith Rabois sold 16,088 shares of the business’s stock in a transaction on Monday, March 3rd. The stock was sold at an average price of $63.97, for a total value of $1,029,149.36. Following the transaction, the director now owns 61,520 shares of the company’s stock, valued at $3,935,434.40. This trade represents a 20.73 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 59,801 shares of company stock valued at $3,806,093. Corporate insiders own 12.41% of the company’s stock.

Institutional Investors Weigh In On Affirm

A number of institutional investors and hedge funds have recently modified their holdings of AFRM. Durable Capital Partners LP raised its position in shares of Affirm by 97.3% during the fourth quarter. Durable Capital Partners LP now owns 5,858,283 shares of the company’s stock worth $356,769,000 after purchasing an additional 2,888,827 shares during the period. Norges Bank acquired a new position in Affirm in the 4th quarter worth about $139,949,000. Capital International Investors bought a new stake in shares of Affirm during the 4th quarter worth about $100,030,000. Foxhaven Asset Management LP bought a new stake in shares of Affirm during the 4th quarter worth about $80,917,000. Finally, Voloridge Investment Management LLC bought a new stake in shares of Affirm during the 4th quarter worth about $76,738,000. 69.29% of the stock is owned by institutional investors and hedge funds.

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.