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

Shares of Affirm Holdings, Inc. (NASDAQ:AFRM) gapped up prior to trading on Friday . The stock had previously closed at $68.77, but opened at $71.03. Affirm shares last traded at $71.07, with a volume of 1,510,761 shares trading hands.

Analyst Ratings Changes

AFRM has been the topic of a number of research reports. The Goldman Sachs Group increased their target price on shares of Affirm from $57.00 to $78.00 and gave the stock a “buy” rating in a report on Monday, December 2nd. Morgan Stanley upgraded Affirm from an “underweight” rating to an “equal weight” rating and increased their price objective for the company from $22.00 to $37.00 in a research note on Wednesday, October 9th. Wedbush raised Affirm from an “underperform” rating to a “neutral” rating and boosted their target price for the stock from $25.00 to $45.00 in a research note on Monday, October 14th. Wells Fargo & Company increased their price target on Affirm from $52.00 to $55.00 and gave the company an “overweight” rating in a research report on Friday, November 8th. Finally, Susquehanna lifted their price objective on Affirm from $52.00 to $57.00 and gave the company a “positive” rating in a research note on Friday, November 8th. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating and nine have given a buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $55.33.

Affirm Stock Performance

The company has a quick ratio of 12.60, a current ratio of 12.60 and a debt-to-equity ratio of 2.50. The firm has a 50-day simple moving average of $54.98 and a 200 day simple moving average of $40.66. The company has a market cap of $22.20 billion, a price-to-earnings ratio of -49.79 and a beta of 3.66.

Affirm (NASDAQ:AFRM) last released its quarterly earnings results on Thursday, November 7th. The company reported ($0.31) EPS for the quarter, beating the consensus estimate 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 firm had revenue of $698.48 million during the quarter, compared to the consensus estimate of $661.39 million. During the same quarter in the prior year, the firm earned ($0.57) EPS. On average, sell-side analysts predict that Affirm Holdings, Inc. will post -0.53 earnings per share for the current fiscal year.

Insider Activity at Affirm

In other news, President Libor Michalek sold 100,000 shares of the firm’s stock in a transaction that occurred on Monday, November 18th. The stock was sold at an average price of $62.00, for a total value of $6,200,000.00. Following the completion of the sale, the president now directly owns 159,449 shares of the company’s stock, valued at $9,885,838. This trade represents a 38.54 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Katherine Adkins sold 82,316 shares of the company’s stock in a transaction on Wednesday, September 18th. The stock was sold at an average price of $45.00, for a total value of $3,704,220.00. Following the transaction, the insider now directly owns 91,499 shares in the company, valued at $4,117,455. This represents a 47.36 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 1,386,751 shares of company stock worth $88,673,393 in the last three months. Insiders own 12.41% of the company’s stock.

Hedge Funds Weigh In On Affirm

Several hedge funds have recently bought and sold shares of AFRM. Ridgewood Investments LLC purchased a new stake in Affirm in the 2nd quarter valued at approximately $27,000. ORG Wealth Partners LLC acquired a new position in shares of Affirm during the 3rd quarter valued at about $29,000. Allspring Global Investments Holdings LLC lifted its holdings in shares of Affirm by 82.4% during the 2nd quarter. Allspring Global Investments Holdings LLC now owns 1,195 shares of the company’s stock worth $36,000 after acquiring an additional 540 shares during the period. ORG Partners LLC boosted its position in shares of Affirm by 80.0% in the second quarter. ORG Partners LLC now owns 1,240 shares of the company’s stock worth $37,000 after acquiring an additional 551 shares during the last quarter. Finally, Advisors Asset Management Inc. grew its holdings in Affirm by 168.2% in the third quarter. Advisors Asset Management Inc. now owns 1,070 shares of the company’s stock valued at $44,000 after purchasing an additional 671 shares during the period. 69.29% of the stock is owned by hedge funds and other institutional investors.

About Affirm

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.