Affirm (NASDAQ:AFRM) Shares Gap Up – What’s Next?

Affirm Holdings, Inc. (NASDAQ:AFRM)’s stock price gapped up prior to trading on Tuesday . The stock had previously closed at $38.60, but opened at $40.75. Affirm shares last traded at $40.00, with a volume of 2,059,564 shares trading hands.

Analyst Ratings Changes

AFRM has been the subject of several research analyst reports. JMP Securities began coverage on shares of Affirm in a research note on Friday, June 28th. They issued a “market perform” rating for the company. Barclays boosted their target price on Affirm from $50.00 to $54.00 and gave the company an “overweight” rating in a research report on Monday, September 23rd. Mizuho reaffirmed an “outperform” rating and set a $65.00 price target on shares of Affirm in a research note on Tuesday, August 27th. Susquehanna assumed coverage on Affirm in a research note on Friday, September 20th. They issued a “positive” rating and a $52.00 price objective for the company. Finally, JPMorgan Chase & Co. upped their target price on Affirm from $43.00 to $45.00 and gave the stock an “overweight” rating in a research report on Tuesday, August 20th. Five investment analysts have rated the stock with a sell rating, eight have issued a hold rating and eight have given a buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $37.24.

Affirm Price Performance

The stock has a market cap of $12.74 billion, a P/E ratio of -17.31 and a beta of 3.50. The business has a 50 day simple moving average of $35.53 and a 200-day simple moving average of $33.05. The company has a debt-to-equity ratio of 2.41, a quick ratio of 13.07 and a current ratio of 13.07.

Affirm (NASDAQ:AFRM) last posted its quarterly earnings results on Wednesday, August 28th. The company reported ($0.14) earnings per share for the quarter, beating the consensus estimate of ($0.45) by $0.31. Affirm had a negative net margin of 22.29% and a negative return on equity of 15.55%. The company had revenue of $659.19 million during the quarter, compared to analyst estimates of $599.50 million. On average, sell-side analysts forecast that Affirm Holdings, Inc. will post -0.82 EPS for the current year.

Insider Activity

In related news, insider Katherine Adkins sold 6,084 shares of Affirm stock in a transaction that occurred on Monday, September 16th. The shares were sold at an average price of $45.00, for a total value of $273,780.00. Following the sale, the insider now owns 122,069 shares of the company’s stock, valued at approximately $5,493,105. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. In other Affirm news, insider Katherine Adkins sold 6,084 shares of the stock in a transaction dated Monday, September 16th. The shares were sold at an average price of $45.00, for a total transaction of $273,780.00. Following the completion of the transaction, the insider now owns 122,069 shares in the company, valued at $5,493,105. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Christa S. Quarles sold 14,400 shares of the business’s stock in a transaction on Thursday, September 12th. The shares were 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 in the company, valued at $5,678,958.06. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 112,075 shares of company stock valued at $4,803,786 in the last three months. Company insiders own 13.05% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Artemis Investment Management LLP bought a new stake in shares of Affirm during the third quarter valued at about $30,808,000. Myecfo LLC boosted its holdings in Affirm by 5.0% in the 3rd quarter. Myecfo LLC now owns 12,260 shares of the company’s stock valued at $500,000 after purchasing an additional 589 shares during the period. Handelsbanken Fonder AB grew its position in shares of Affirm by 24.4% during the 3rd quarter. Handelsbanken Fonder AB now owns 62,200 shares of the company’s stock valued at $2,539,000 after purchasing an additional 12,200 shares in the last quarter. Teachers Retirement System of The State of Kentucky increased its holdings in shares of Affirm by 4.1% in the second quarter. Teachers Retirement System of The State of Kentucky now owns 192,558 shares of the company’s stock worth $5,817,000 after purchasing an additional 7,500 shares during the period. Finally, Quarry LP bought a new position in shares of Affirm in the second quarter worth $109,000. Institutional investors 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.