Affirm (NASDAQ:AFRM) Stock Price Down 5.7% on Analyst Downgrade

Shares of Affirm Holdings, Inc. (NASDAQ:AFRM) dropped 5.7% during mid-day trading on Tuesday after The Goldman Sachs Group lowered their price target on the stock from $90.00 to $56.00. The Goldman Sachs Group currently has a buy rating on the stock. Affirm traded as low as $45.15 and last traded at $45.25. Approximately 1,024,439 shares changed hands during trading, a decline of 87% from the average daily volume of 7,979,372 shares. The stock had previously closed at $47.96.

A number of other brokerages have also recently commented on AFRM. Mizuho upped their price target on shares of Affirm from $65.00 to $69.00 and gave the company an “outperform” rating in a research report on Tuesday, November 19th. Wells Fargo & Company upped their target price on shares of Affirm from $70.00 to $85.00 and gave the company an “overweight” rating in a report on Friday, February 7th. Royal Bank of Canada raised their price target on Affirm from $67.00 to $81.00 and gave the stock a “sector perform” rating in a report on Friday, February 7th. Needham & Company LLC reaffirmed a “hold” rating on shares of Affirm in a research note on Friday, February 7th. Finally, JMP Securities lifted their target price on Affirm from $78.00 to $85.00 and gave the company a “market outperform” rating in a research note on Friday, February 7th. Eight equities research analysts have rated the stock with a hold rating, eleven have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat, Affirm has an average rating of “Moderate Buy” and an average price target of $68.41.

Insider Buying and Selling

In related news, CFO Robert O’hare sold 6,541 shares of the firm’s stock in a transaction that occurred on Thursday, January 2nd. The shares were sold at an average price of $62.28, for a total transaction of $407,373.48. Following the sale, the chief financial officer now owns 2,963 shares in the company, valued at approximately $184,535.64. This trade represents a 68.82 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Keith Rabois sold 16,088 shares of the business’s stock in a transaction on Monday, March 3rd. The shares were sold at an average price of $63.97, for a total value of $1,029,149.36. Following the completion of 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 ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 62,301 shares of company stock worth $3,920,543 in the last three months. Corporate insiders own 12.41% of the company’s stock.

Institutional Investors Weigh In On Affirm

A number of hedge funds and other institutional investors have recently made changes to their positions in AFRM. Capital Research Global Investors boosted its stake in Affirm by 2.0% in the 4th quarter. Capital Research Global Investors now owns 24,264,396 shares of the company’s stock worth $1,477,747,000 after buying an additional 470,409 shares during the last quarter. Vanguard Group Inc. boosted its position in shares of Affirm by 3.4% in the fourth quarter. Vanguard Group Inc. now owns 21,815,563 shares of the company’s stock worth $1,328,568,000 after acquiring an additional 716,574 shares during the last quarter. Capital World Investors grew its holdings in Affirm by 0.4% in the fourth quarter. Capital World Investors now owns 18,339,165 shares of the company’s stock valued at $1,116,861,000 after purchasing an additional 72,582 shares during the period. Durable Capital Partners LP increased its position in 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 last quarter. Finally, Jericho Capital Asset Management L.P. raised its stake in Affirm by 11.6% during the fourth quarter. Jericho Capital Asset Management L.P. now owns 5,198,039 shares of the company’s stock worth $316,561,000 after purchasing an additional 538,892 shares during the period. Hedge funds and other institutional investors own 69.29% of the company’s stock.

Affirm Stock Performance

The company has a market cap of $15.17 billion, a price-to-earnings ratio of -73.40 and a beta of 3.63. The company has a debt-to-equity ratio of 2.68, a quick ratio of 11.26 and a current ratio of 11.26. The stock’s fifty day simple moving average is $61.00 and its two-hundred day simple moving average is $55.95.

Affirm (NASDAQ:AFRM) last posted its quarterly earnings results on Thursday, February 6th. The company reported $0.23 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.21) by $0.44. Affirm had a negative return on equity of 7.25% and a negative net margin of 7.10%. Equities research analysts anticipate that Affirm Holdings, Inc. will post -0.18 EPS for the current year.

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.