Affirm (NASDAQ:AFRM) Share Price Breaks Below 200 Day Moving Average Following Analyst Downgrade

Affirm Holdings, Inc. (NASDAQ:AFRM)’s stock price crossed below its two hundred day moving average during trading on Tuesday after JPMorgan Chase & Co. lowered their price target on the stock from $105.00 to $95.00. The stock has a two hundred day moving average of $66.50 and traded as low as $64.55. JPMorgan Chase & Co. currently has an overweight rating on the stock. Affirm shares last traded at $65.95, with a volume of 6,147,064 shares traded.

AFRM has been the topic of a number of other reports. Wolfe Research reiterated an “outperform” rating on shares of Affirm in a research report on Friday, August 28th. Susquehanna lifted 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. Cantor Fitzgerald dropped their target price on Affirm from $97.00 to $84.00 and set an “overweight” rating for the company in a research report on Monday. UBS Group upped their price target on Affirm from $82.00 to $90.00 and gave the company a “neutral” rating in a research note on Friday, August 28th. Finally, Barclays reaffirmed a “sector outperform” rating on shares of Affirm in a research note on Friday. One research analyst has rated the stock with a Strong Buy rating, twenty-five have given a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $95.96.

Insider Activity at Affirm

In other Affirm news, CAO Siphelele Jiyane sold 26,980 shares of the company’s stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $72.19, for a total transaction of $1,947,686.20. Following the completion of the transaction, the chief accounting officer owned 188,711 shares of the company’s stock, valued at $13,623,047.09. This represents a 12.51% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Katherine Adkins sold 41,664 shares of the firm’s stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $75.53, for a total value of $3,146,881.92. Following the completion of the transaction, the insider owned 152,439 shares of the company’s stock, valued at $11,513,717.67. The trade was a 21.46% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 280,118 shares of company stock worth $22,223,307 over the last three months. 10.57% of the stock is currently owned by insiders.

Affirm News Roundup

Here are the key news stories impacting Affirm this week:

• Positive Sentiment: Bernstein initiated coverage with a Buy rating, offering a bullish analyst view. Affirm Holdings Receives a Buy from Bernstein
• Positive Sentiment: Affirm is buying European payments provider Ratepay from Nexi. The deal could expand Affirm’s presence and capabilities in Europe, though the report did not provide financial terms. Nexi Sells Payment Provider Ratepay to Affirm
• Neutral Sentiment: Several analysts lowered price targets, including Cantor Fitzgerald and JPMorgan, but both retained Overweight ratings. Other reports also noted target cuts from Piper Sandler, Barclays and Stephens, while Citizens JMP reiterated Market Outperform. This points to more cautious valuation assumptions without a broad retreat from bullish ratings. Cantor Fitzgerald Analyst Recommendations
• Neutral Sentiment: A report described a sharp increase in short interest but then gave the current short interest as zero shares and days to cover as zero. Those figures conflict, so the data does not provide a reliable signal about short positioning.
• Negative Sentiment: A hotter-than-expected inflation report weighed on fintech lenders, with investors concerned about the impact of rates on the sector. The report cited Affirm among the lenders whose shares declined, contributing to near-term pressure on AFRM. Hot Inflation Report Hits Fintech Lenders

Institutional Investors Weigh In On Affirm

Several hedge funds have recently bought and sold shares of AFRM. Bank of New York Mellon Corp bought a new position in shares of Affirm during the second quarter valued at approximately $75,121,000. Ardmore Road Asset Management LP increased its holdings in Affirm by 849.6% in the 1st quarter. Ardmore Road Asset Management LP now owns 600,000 shares of the company’s stock worth $27,492,000 after buying an additional 536,814 shares in the last quarter. Allspring Global Investments Holdings LLC raised its holdings in shares of Affirm by 23.8% during the first quarter. Allspring Global Investments Holdings LLC now owns 1,577,264 shares of the company’s stock valued at $71,829,000 after purchasing an additional 303,037 shares during the last quarter. Spyglass Capital Management LLC raised its stake in Affirm by 15.2% during the 1st quarter. Spyglass Capital Management LLC now owns 1,662,325 shares of the company’s stock valued at $76,168,000 after buying an additional 218,745 shares during the last quarter. Finally, Dimensional Fund Advisors LP increased its position in Affirm by 11.8% during the first quarter. Dimensional Fund Advisors LP now owns 1,574,660 shares of the company’s stock valued at $72,100,000 after acquiring an additional 166,252 shares during the last quarter. 69.29% of the stock is currently owned by institutional investors and hedge funds.

Affirm Stock Down 3.1%

The company has a current ratio of 12.50, a quick ratio of 11.80 and a debt-to-equity ratio of 1.81. The stock has a market cap of $22.25 billion, a P/E ratio of 11.45, a PEG ratio of 2.75 and a beta of 3.74. The company’s 50 day moving average price is $72.18 and its two-hundred day moving average price is $66.50.

Affirm (NASDAQ:AFRM) last announced its quarterly earnings data on Thursday, November 5th. The company reported $0.47 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.38 by $0.09. The company had revenue of $1.15 billion during the quarter, compared to the consensus estimate of $1.21 billion. Affirm had a return on equity of 43.38% and a net margin of 43.86%. The firm’s revenue was up 35.2% on a year-over-year basis. During the same period in the previous year, the company posted $0.23 EPS. Equities analysts forecast that Affirm Holdings, Inc. will post 1.89 earnings per share for the current year.

Affirm Company Profile

Affirm Holdings, Inc. operates a financial technology platform that enables consumers to pay for purchases over time. Its services are offered at participating merchants’ checkout pages and through the Affirm app, where eligible customers can review payment options and manage purchases. The company’s products include installment loans with terms that vary by purchase and eligibility, as well as the Affirm Card, which lets users access Affirm payment options for eligible transactions. Affirm also provides merchants with payment and commerce tools designed to support checkout and customer purchases.