Affirm (NASDAQ:AFRM) Trading Down 8.2% – Should You Sell?

Affirm Holdings, Inc. (NASDAQ:AFRM)’s stock price fell 8.2% during trading on Wednesday . The company traded as low as $65.05 and last traded at $65.17. 1,116,758 shares traded hands during trading, a decline of 81% from the average session volume of 5,954,479 shares. The stock had previously closed at $71.01.

Analyst Upgrades and Downgrades

A number of research firms have commented on AFRM. Bank of America increased their target price on Affirm from $82.00 to $88.00 and gave the stock a “buy” rating in a report on Monday, May 11th. Oppenheimer reaffirmed an “outperform” rating and set a $87.00 target price on shares of Affirm in a report on Friday, May 8th. Compass Point reaffirmed a “buy” rating and set a $68.00 target price on shares of Affirm in a report on Wednesday, February 18th. Morgan Stanley set a $79.00 target price on Affirm and gave the stock an “overweight” rating in a report on Sunday, May 10th. Finally, Robert W. Baird set a $70.00 target price on Affirm in a report on Friday, May 8th. One research analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating and nine have assigned a Hold 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 $86.20.

Affirm Price Performance

The company has a current ratio of 11.32, a quick ratio of 11.32 and a debt-to-equity ratio of 2.39. The business has a 50-day moving average price of $60.54 and a two-hundred day moving average price of $62.37. The firm has a market capitalization of $23.01 billion, a price-to-earnings ratio of 62.45, a PEG ratio of 3.81 and a beta of 3.70.

Affirm (NASDAQ:AFRM) last announced its quarterly earnings results on Thursday, May 7th. The company reported $0.30 earnings per share for the quarter, topping analysts’ consensus estimates of $0.17 by $0.13. The business had revenue of $943.95 million for the quarter, compared to analysts’ expectations of $995.27 million. Affirm had a return on equity of 11.17% and a net margin of 9.63%.The business’s quarterly revenue was up 32.7% on a year-over-year basis. During the same period in the prior year, the firm earned $0.01 EPS. As a group, research analysts forecast that Affirm Holdings, Inc. will post 1.25 EPS for the current year.

Insider Buying and Selling at Affirm

In other news, Director Noel Bertram Watson sold 2,000 shares of the stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $65.00, for a total transaction of $130,000.00. Following the sale, the director directly owned 36,076 shares in the company, valued at approximately $2,344,940. This represents a 5.25% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 11.01% of the company’s stock.

Institutional Trading of Affirm

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Royal Bank of Canada grew its holdings in Affirm by 2.1% in the 1st quarter. Royal Bank of Canada now owns 193,601 shares of the company’s stock worth $8,748,000 after buying an additional 3,892 shares in the last quarter. Empowered Funds LLC grew its holdings in Affirm by 90.7% in the 1st quarter. Empowered Funds LLC now owns 16,852 shares of the company’s stock worth $762,000 after buying an additional 8,014 shares in the last quarter. Focus Partners Wealth bought a new position in Affirm in the 1st quarter worth approximately $243,000. EverSource Wealth Advisors LLC grew its holdings in Affirm by 18.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,738 shares of the company’s stock worth $189,000 after buying an additional 427 shares in the last quarter. Finally, First Trust Advisors LP grew its holdings in Affirm by 44.8% in the 2nd quarter. First Trust Advisors LP now owns 191,525 shares of the company’s stock worth $13,242,000 after buying an additional 59,297 shares in the last quarter. 69.29% of the stock is currently owned by institutional investors and hedge funds.

About Affirm

Affirm Holdings, Inc is a financial technology company that provides point-of-sale consumer lending and payments solutions for online and in-store purchases. Its core product is a buy-now-pay-later (BNPL) platform that enables consumers to split purchases into fixed, transparent installment loans with no hidden fees. Affirm offers a range of financing options through merchant integrations, a consumer-facing mobile app and virtual card capabilities, and tools for merchants to offer alternative payment methods at checkout.