Morgan Stanley Has Lowered Expectations for Affirm (NASDAQ:AFRM) Stock Price

Affirm (NASDAQ:AFRM) had its target price reduced by Morgan Stanley from $65.00 to $60.00 in a report released on Tuesday,Benzinga reports. The brokerage currently has an “equal weight” rating on the stock. Morgan Stanley’s price objective would indicate a potential upside of 17.17% from the stock’s current price.

Several other analysts also recently commented on AFRM. Compass Point raised Affirm from a “neutral” rating to a “buy” rating and upped their price objective for the company from $61.00 to $64.00 in a research note on Wednesday, March 19th. TD Cowen assumed coverage on shares of Affirm in a research report on Tuesday, April 8th. They set a “buy” rating and a $50.00 price objective for the company. Barclays upped their price objective on Affirm from $75.00 to $85.00 and gave the stock an “overweight” rating in a report on Monday, February 10th. UBS Group upped their price target 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. Finally, William Blair initiated coverage on shares of Affirm in a research note on Wednesday, January 15th. They issued an “outperform” rating for the company. Eight analysts have rated the stock with a hold rating, fourteen have issued a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $67.00.

Affirm Stock Performance

Shares of NASDAQ AFRM traded down $0.88 during trading hours on Tuesday, reaching $51.21. The stock had a trading volume of 799,671 shares, compared to its average volume of 8,355,174. The company has a current ratio of 11.26, a quick ratio of 11.26 and a debt-to-equity ratio of 2.68. Affirm has a fifty-two week low of $22.25 and a fifty-two week high of $82.53. The firm has a 50-day moving average of $47.25 and a 200-day moving average of $56.58. The firm has a market cap of $16.29 billion, a price-to-earnings ratio of -78.66 and a beta of 3.66.

Affirm (NASDAQ:AFRM) last released its quarterly earnings results on Thursday, February 6th. The company reported $0.23 EPS for the quarter, beating 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%. Equities research analysts predict that Affirm will post -0.18 earnings per share for the current year.

Insider Transactions at Affirm

In related news, Director Keith Rabois sold 16,089 shares of the stock in a transaction dated Thursday, May 1st. The shares were sold at an average price of $51.00, for a total value of $820,539.00. Following the completion of the transaction, the director now owns 29,343 shares in the company, valued at $1,496,493. This represents a 35.41 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Christa S. Quarles sold 5,000 shares of the business’s stock in a transaction dated Friday, February 14th. The stock was sold at an average price of $80.00, for a total transaction of $400,000.00. Following the sale, the director now owns 137,325 shares in the company, valued at $10,986,000. This trade represents a 3.51 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 55,765 shares of company stock valued at $3,094,694. 12.41% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Affirm

Hedge funds and other institutional investors have recently bought and sold shares of the business. Tidal Investments LLC raised its holdings in shares of Affirm by 208.6% during the third quarter. Tidal Investments LLC now owns 21,775 shares of the company’s stock valued at $889,000 after acquiring an additional 14,720 shares during the period. GAMMA Investing LLC increased its position in Affirm by 21.5% in the 4th quarter. GAMMA Investing LLC now owns 4,177 shares of the company’s stock worth $254,000 after purchasing an additional 738 shares during the last quarter. Nordea Investment Management AB bought a new position in Affirm during the fourth quarter valued at about $6,380,000. Diversified Trust Co acquired a new position in Affirm during the 4th quarter worth $225,000. Finally, SeaCrest Wealth Management LLC bought a new position in Affirm during the fourth quarter worth $387,000. 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.