Affirm (NASDAQ:AFRM) Trading Down 7.2% – Should You Sell?

Affirm Holdings, Inc. (NASDAQ:AFRM) dropped 7.2% during mid-day trading on Monday . The stock traded as low as $77.27 and last traded at $75.9110. Approximately 2,144,668 shares traded hands during mid-day trading, a decline of 43% from the average daily volume of 3,739,947 shares. The stock had previously closed at $81.80.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the company. Wall Street Zen lowered Affirm from a “buy” rating to a “hold” rating in a research report on Saturday, January 3rd. Wells Fargo & Company began coverage on shares of Affirm in a research note on Tuesday, October 21st. They set an “overweight” rating and a $89.00 target price on the stock. Royal Bank Of Canada decreased their price target on shares of Affirm from $97.00 to $87.00 and set a “sector perform” rating for the company in a research note on Friday, November 7th. Redburn Partners set a $101.00 price objective on Affirm in a research report on Monday, October 6th. Finally, Rothschild Redb raised Affirm from a “hold” rating to a “strong-buy” rating in a research report on Monday, October 6th. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and eleven have given a Hold rating to the company. According to data from MarketBeat.com, Affirm currently has an average rating of “Moderate Buy” and an average target price of $89.17.

Affirm Stock Performance

The company has a debt-to-equity ratio of 2.40, a quick ratio of 12.80 and a current ratio of 12.80. The stock has a market capitalization of $25.21 billion, a P/E ratio of 114.01, a PEG ratio of 3.71 and a beta of 3.57. The business has a 50-day moving average price of $72.28 and a 200 day moving average price of $74.23.

Affirm (NASDAQ:AFRM) last released its earnings results on Thursday, November 6th. The company reported $0.23 EPS for the quarter, topping the consensus estimate of $0.11 by $0.12. Affirm had a return on equity of 7.75% and a net margin of 6.74%.The business had revenue of $933.34 million for the quarter, compared to the consensus estimate of $881.83 million. During the same period in the previous year, the company posted ($0.31) earnings per share. The company’s revenue for the quarter was up 33.6% compared to the same quarter last year. As a group, sell-side analysts forecast that Affirm Holdings, Inc. will post -0.18 EPS for the current fiscal year.

Insider Activity at Affirm

In other Affirm news, CFO Robert O’hare sold 36,401 shares of Affirm stock in a transaction on Monday, January 5th. The stock was sold at an average price of $80.00, for a total value of $2,912,080.00. Following the completion of the sale, the chief financial officer owned 1,368 shares of the company’s stock, valued at approximately $109,440. This trade represents a 96.38% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Max R. Levchin sold 666,666 shares of the company’s stock in a transaction on Monday, January 5th. The shares were sold at an average price of $80.62, for a total value of $53,746,612.92. The SEC filing for this sale provides additional information. Insiders have sold 711,256 shares of company stock valued at $57,231,923 in the last three months. 11.01% of the stock is owned by insiders.

Hedge Funds Weigh In On Affirm

A number of hedge funds have recently bought and sold shares of AFRM. Assetmark Inc. grew its position in Affirm by 111.3% in the 3rd quarter. Assetmark Inc. now owns 338 shares of the company’s stock worth $25,000 after purchasing an additional 178 shares during the period. Huntington National Bank boosted its stake in shares of Affirm by 634.0% in the 2nd quarter. Huntington National Bank now owns 389 shares of the company’s stock worth $27,000 after buying an additional 336 shares during the last quarter. Mather Group LLC. bought a new stake in shares of Affirm in the third quarter worth $29,000. SouthState Corp increased its position in Affirm by 190.5% during the second quarter. SouthState Corp now owns 427 shares of the company’s stock valued at $30,000 after acquiring an additional 280 shares during the last quarter. Finally, Triumph Capital Management bought a new position in Affirm in the third quarter valued at about $31,000. Hedge funds and other institutional investors own 69.29% of the company’s stock.

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.