Affirm (NASDAQ:AFRM) Shares Gap Down – Time to Sell?

Affirm Holdings, Inc. (NASDAQ:AFRM) shares gapped down before the market opened on Tuesday . The stock had previously closed at $62.06, but opened at $60.16. Affirm shares last traded at $61.45, with a volume of 2,079,224 shares trading hands.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the company. BTIG Research raised Affirm from a “neutral” rating to a “buy” rating and set a $68.00 target price on the stock in a research report on Tuesday, October 8th. Barclays raised their target price on Affirm from $54.00 to $64.00 and gave the stock an “overweight” rating in a research report on Monday. The Goldman Sachs Group boosted their price target on shares of Affirm from $46.00 to $54.00 and gave the company a “buy” rating in a report on Monday, October 14th. Susquehanna increased their price target on shares of Affirm from $52.00 to $57.00 and gave the stock a “positive” rating in a research report on Friday, November 8th. Finally, Wells Fargo & Company increased their target price on Affirm from $52.00 to $55.00 and gave the stock an “overweight” rating in a report on Friday, November 8th. One investment analyst has rated the stock with a sell rating, nine have assigned a hold rating and nine have issued a buy rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $46.85.

Affirm Stock Performance

The stock’s 50 day moving average is $44.96 and its two-hundred day moving average is $35.90. The company has a debt-to-equity ratio of 2.50, a current ratio of 12.60 and a quick ratio of 12.60. The firm has a market capitalization of $19.80 billion, a P/E ratio of -42.15 and a beta of 3.47.

Affirm (NASDAQ:AFRM) last released its quarterly earnings data on Thursday, November 7th. The company reported ($0.31) EPS for the quarter, beating analysts’ consensus estimates of ($0.36) by $0.05. Affirm had a negative net margin of 17.67% and a negative return on equity of 12.57%. The business had revenue of $698.48 million during the quarter, compared to analysts’ expectations of $661.39 million. During the same quarter in the prior year, the company earned ($0.57) EPS. As a group, equities analysts anticipate that Affirm Holdings, Inc. will post -0.53 earnings per share for the current fiscal year.

Insider Buying and Selling at Affirm

In other news, Director Christa S. Quarles sold 14,400 shares of the stock in a transaction on Thursday, September 12th. The stock was sold at an average price of $40.02, for a total transaction of $576,288.00. Following the sale, the director now directly owns 141,903 shares of the company’s stock, valued at approximately $5,678,958.06. This represents a 9.21 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Katherine Adkins sold 200,000 shares of the firm’s stock in a transaction on Monday, November 11th. The shares were sold at an average price of $55.05, for a total value of $11,010,000.00. Following the completion of the sale, the insider now directly owns 93,545 shares in the company, valued at approximately $5,149,652.25. This represents a 68.13 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 403,738 shares of company stock worth $21,115,878 over the last ninety days. 12.41% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Affirm

Several hedge funds have recently modified their holdings of AFRM. US Bancorp DE raised its position in Affirm by 5.6% during the 1st quarter. US Bancorp DE now owns 17,166 shares of the company’s stock worth $640,000 after purchasing an additional 914 shares during the last quarter. Avantax Advisory Services Inc. purchased a new stake in shares of Affirm in the first quarter valued at about $258,000. Vanguard Group Inc. grew its stake in Affirm by 6.8% in the 1st quarter. Vanguard Group Inc. now owns 20,823,803 shares of the company’s stock valued at $775,895,000 after purchasing an additional 1,316,901 shares during the period. CreativeOne Wealth LLC bought a new stake in shares of Affirm in the 1st quarter worth approximately $535,000. Finally, Freestone Capital Holdings LLC purchased a new position in shares of Affirm during the 1st quarter valued at $730,000. Institutional investors and hedge funds own 69.29% of the company’s stock.

Affirm Company Profile

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.