Affirm (NASDAQ:AFRM) Stock Falls 7.4% on Analyst Downgrade

Affirm Holdings, Inc. (NASDAQ:AFRM)’s share price fell 7.4% on Wednesday after The Goldman Sachs Group lowered their price target on the stock from $115.00 to $103.00. The Goldman Sachs Group currently has a buy rating on the stock. Affirm traded as low as $73.80 and last traded at $72.1260. 464,415 shares were traded during trading, a decline of 91% from the average session volume of 5,172,717 shares. The stock had previously closed at $77.89.

A number of other research analysts have also weighed in on the stock. Loop Capital started coverage on shares of Affirm in a report on Wednesday, September 9th. They issued a “buy” rating and a $105.00 target price for the company. Susquehanna upped their target price on Affirm from $105.00 to $110.00 and gave the company a “positive” rating in a research note on Friday, August 28th. TD Cowen reduced their price target on shares of Affirm from $124.00 to $110.00 and set a “buy” rating on the stock in a research note on Tuesday, October 6th. JPMorgan Chase & Co. boosted their price objective on shares of Affirm from $90.00 to $105.00 and gave the company an “overweight” rating in a research report on Friday, August 28th. Finally, Cantor Fitzgerald upped their target price on shares of Affirm from $88.00 to $97.00 and gave the stock an “overweight” rating in a research note on Monday, August 31st. Twenty-four equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $97.69.

Insiders Place Their Bets

In other Affirm news, CAO Siphelele Jiyane sold 26,980 shares of the company’s stock in a transaction on Monday, September 14th. The stock was sold at an average price of $72.19, for a total value of $1,947,686.20. Following the completion of the sale, the chief accounting officer directly owned 188,711 shares in the company, valued at approximately $13,623,047.09. This represents a 12.51% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Michael Linford sold 79,219 shares of the stock in a transaction on Friday, August 28th. The stock was sold at an average price of $90.01, for a total value of $7,130,502.19. Following the transaction, the chief operating officer directly owned 120,713 shares in the company, valued at $10,865,377.13. The trade was a 39.62% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 214,527 shares of company stock worth $16,974,716. 11.01% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. TD Waterhouse Canada Inc. boosted its holdings in shares of Affirm by 386.5% in the 2nd quarter. TD Waterhouse Canada Inc. now owns 51,844 shares of the company’s stock valued at $4,228,000 after buying an additional 41,187 shares in the last quarter. SteelPeak Wealth LLC bought a new position in shares of Affirm during the 1st quarter worth approximately $935,000. Dimensional Fund Advisors LP raised its stake in shares of Affirm by 11.8% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,574,660 shares of the company’s stock worth $72,100,000 after acquiring an additional 166,252 shares in the last quarter. Nykredit A S bought a new position in shares of Affirm during the 2nd quarter worth approximately $7,170,000. Finally, Royal Bank of Canada lifted its position in Affirm by 8.4% during the first quarter. Royal Bank of Canada now owns 318,783 shares of the company’s stock valued at $14,607,000 after acquiring an additional 24,583 shares during the last quarter. Hedge funds and other institutional investors own 69.29% of the company’s stock.

Affirm Price Performance

The stock’s 50-day moving average is $73.85 and its 200 day moving average is $69.90. The company has a debt-to-equity ratio of 1.82, a current ratio of 11.80 and a quick ratio of 11.80. The company has a market cap of $24.36 billion, a PE ratio of 13.05, a PEG ratio of 3.16 and a beta of 3.82.

Affirm (NASDAQ:AFRM) last released its quarterly earnings results on Thursday, August 27th. The company reported $4.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.35 by $4.27. Affirm had a net margin of 45.29% and a return on equity of 47.91%. The business had revenue of $1.07 billion for the quarter, compared to analyst estimates of $1.11 billion. During the same period in the previous year, the company earned $0.20 earnings per share. The business’s revenue for the quarter was up 33.1% on a year-over-year basis. On average, equities analysts anticipate that Affirm Holdings, Inc. will post 1.91 earnings per share for the current fiscal year.

Affirm Company Profile

Affirm Holdings, Inc (NASDAQ: AFRM) operates a digital commerce and financial services platform that enables consumers to pay for purchases over time. Its point-of-sale financing products allow eligible customers to use installment loans, including both short-term and longer-duration payment options, with terms and costs disclosed before purchase.

Affirm’s services are offered through its merchant partners’ online and in-store checkout experiences, as well as through the Affirm app and website.