Affirm (NASDAQ:AFRM) Trading Down 7.3% – Here’s What Happened

Affirm Holdings, Inc. (NASDAQ:AFRM)’s share price dropped 7.3% on Wednesday . The company traded as low as $60.12 and last traded at $60.6310. Approximately 1,189,770 shares changed hands during mid-day trading, a decline of 80% from the average daily volume of 6,083,587 shares. The stock had previously closed at $65.43.

Affirm News Summary

Here are the key news stories impacting Affirm this week:

• Positive Sentiment: Jim Cramer said Affirm is now “a very profitable business” and highlighted it as a “great opportunity,” reinforcing the idea that the company’s earnings profile is improving. Jim Cramer on Affirm: “This Is Now a Very Profitable Business”
• Positive Sentiment: Affirm announced a partnership expansion with Google, bringing pay-over-time options into Google Search, Gemini, and Google Pay, which could widen distribution and lower customer acquisition costs. Affirm Brings Pay-Over-Time Options to Google AI Platforms
• Positive Sentiment: Bank of America raised its price target on Affirm and kept a Buy rating, citing a strong recent quarter and better-than-expected performance. Affirm price target boosted by Bank of America after strong quarter
• Neutral Sentiment: UBS also lifted its price target on Affirm, but kept a Neutral rating, suggesting upside exists but not enough for a more bullish call. UBS adjusts price target on Affirm to $82 from $78, maintains Neutral rating
• Neutral Sentiment: Affirm’s investor day emphasized a larger long-term growth target and scaling strategy, but the stock still fell afterward, implying investors may be waiting for more proof that the plan will translate into sustained profits. Affirm Investor Day Touts ‘Bigger Is Better,’ Strategy. But Shares Fall.
• Negative Sentiment: Despite upbeat commentary and new growth initiatives, the shares are under pressure as the market appears concerned that the premium valuation may already reflect much of the good news.

Wall Street Analyst Weigh In

AFRM has been the topic of several recent research reports. JPMorgan Chase & Co. increased their target price on Affirm from $79.00 to $80.00 and gave the stock an “overweight” rating in a research report on Friday, May 8th. Zacks Research lowered Affirm from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, April 29th. Truist Financial raised their target price on Affirm from $71.00 to $75.00 and gave the stock a “buy” rating in a research note on Friday, April 24th. TD Cowen reaffirmed a “buy” rating on shares of Affirm in a report on Friday, February 6th. Finally, Needham & Company LLC upped their price target on Affirm from $85.00 to $90.00 and gave the company a “buy” rating in a research report on Friday, May 8th. One research analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating and nine have given a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $85.80.

Affirm Stock Down 3.2%

The company has a market cap of $21.09 billion, a PE ratio of 57.53, a P/E/G ratio of 4.50 and a beta of 3.72. The stock has a 50-day moving average of $53.67 and a 200-day moving average of $63.00. The company has a quick ratio of 11.41, a current ratio of 11.32 and a debt-to-equity ratio of 2.39.

Affirm (NASDAQ:AFRM) last announced its earnings results on Thursday, May 7th. The company reported $0.30 earnings per share for the quarter, topping analysts’ consensus estimates of $0.17 by $0.13. Affirm had a return on equity of 11.17% and a net margin of 9.63%.The business had revenue of $943.95 million for the quarter, compared to analyst estimates of $995.27 million. During the same period in the prior year, the company earned $0.01 EPS. The company’s quarterly revenue was up 32.7% compared to the same quarter last year. Sell-side analysts predict that Affirm Holdings, Inc. will post 1.11 earnings per share for the current fiscal year.

Insider Buying and Selling at Affirm

In related news, Director Noel Bertram Watson sold 2,000 shares of the firm’s stock in a transaction that occurred on Tuesday, April 14th. The shares were sold at an average price of $55.00, for a total value of $110,000.00. Following the sale, the director directly owned 38,076 shares of the company’s stock, valued at $2,094,180. This trade represents a 4.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 11.01% of the company’s stock.

Hedge Funds Weigh In On Affirm

A number of hedge funds and other institutional investors have recently bought and sold shares of AFRM. Assetmark Inc. lifted its holdings in shares of Affirm by 111.3% during the 3rd quarter. Assetmark Inc. now owns 338 shares of the company’s stock worth $25,000 after acquiring an additional 178 shares during the last quarter. Greenline Wealth Management LLC purchased a new stake in Affirm during the fourth quarter valued at about $26,000. Triumph Capital Management bought a new stake in Affirm during the third quarter worth about $31,000. CoreCap Advisors LLC lifted its stake in Affirm by 431.3% during the fourth quarter. CoreCap Advisors LLC now owns 441 shares of the company’s stock worth $33,000 after purchasing an additional 358 shares during the last quarter. Finally, Strive Financial Group LLC purchased a new position in shares of Affirm in the 4th quarter worth about $33,000. Hedge funds and other institutional investors own 69.29% of the company’s stock.

Affirm Company Profile

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.