Affirm (NASDAQ:AFRM) Stock Price Down 4.9% After Analyst Downgrade

Affirm Holdings, Inc. (NASDAQ:AFRM)’s share price fell 4.9% on Friday after JPMorgan Chase & Co. lowered their price target on the stock from $94.00 to $79.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Affirm traded as low as $58.70 and last traded at $56.5350. 1,828,893 shares traded hands during trading, a decline of 69% from the average session volume of 5,839,735 shares. The stock had previously closed at $59.42.

Several other equities analysts have also recently weighed in on the company. Royal Bank Of Canada cut their price objective on Affirm from $87.00 to $77.00 and set a “sector perform” rating for the company in a research report on Friday. Cantor Fitzgerald raised Affirm to a “strong-buy” rating in a research report on Tuesday, January 27th. Citigroup raised Affirm to a “strong-buy” rating in a research report on Thursday, October 23rd. Wolfe Research began coverage on shares of Affirm in a research note on Tuesday, December 9th. They issued a “peer perform” rating on the stock. Finally, BTIG Research reissued a “neutral” rating on shares of Affirm in a research report on Wednesday, December 17th. Two research analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and seven have assigned a Hold rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $87.21.

Insider Activity

In other news, CFO Robert O’hare sold 36,401 shares of the firm’s stock in a transaction that occurred on Monday, January 5th. The shares were sold at an average price of $80.00, for a total transaction of $2,912,080.00. Following the completion of the sale, the chief financial officer owned 1,368 shares of the company’s stock, valued at approximately $109,440. This trade represents a 96.38% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Max R. Levchin sold 666,666 shares of Affirm stock in a transaction that occurred on Monday, January 5th. The shares were sold at an average price of $80.62, for a total transaction of $53,746,612.92. The SEC filing for this sale provides additional information. Insiders have sold a total of 711,256 shares of company stock valued at $57,231,923 over the last three months. 11.01% of the stock is currently owned by insiders.

More Affirm News

Here are the key news stories impacting Affirm this week:

• Positive Sentiment: Q2 results beat consensus — Affirm reported an EPS beat and revenue growth with GMV up ~36% year-over-year, underscoring healthy transaction and merchant momentum. Affirm Q2 earnings beat (MarketBeat)
• Positive Sentiment: Customer and merchant metrics improving — active consumers and transactions per user rose, supporting repeat-use traction for Affirm’s BNPL offerings. Affirm BNPL volumes jump (PYMNTS)
• Positive Sentiment: New partnership expands reach — Affirm signed a deal with Virgin Media O2 to offer device financing in the U.K., which should broaden merchant distribution and product adoption. Affirm and Virgin Media O2 partnership (BusinessWire)
• Positive Sentiment: Some analyst support remains — Morgan Stanley recently upgraded the stock to Overweight, reflecting buy‑side interest despite mixed signals. Morgan Stanley upgrade (AmericanBankingNews)
• Neutral Sentiment: Guidance roughly in line — Affirm updated fiscal revenue targets that were generally in line with expectations, leaving less new directional information for investors. Q2 results and investor presentation (Affirm IR)
• Neutral Sentiment: Short-interest data shows no meaningful change — the reported short interest figures are effectively unchanged and do not appear to be driving today’s move.
• Negative Sentiment: Credit metrics deteriorated — Affirm increased loan-loss provisions and noted higher installment loan delinquency rates, which raised concerns about credit quality and pressured the stock. Earnings beat highlights growth and credit concerns (MarketBeat)
• Negative Sentiment: Analysts trimmed price targets — several firms (JPMorgan, Stephens, RBC) lowered targets this morning, signaling more cautious near‑term expectations and adding selling pressure. Analyst price-target changes (Benzinga / MarketScreener)

Hedge Funds Weigh In On Affirm

A number of institutional investors and hedge funds have recently bought and sold shares of AFRM. Royal Bank of Canada raised its holdings in shares of Affirm by 2.1% in the first quarter. Royal Bank of Canada now owns 193,601 shares of the company’s stock valued at $8,748,000 after buying an additional 3,892 shares during the last quarter. Empowered Funds LLC raised its stake in shares of Affirm by 90.7% in the first quarter. Empowered Funds LLC now owns 16,852 shares of the company’s stock worth $762,000 after acquiring an additional 8,014 shares during the last quarter. Focus Partners Wealth acquired a new position in shares of Affirm during the first quarter worth approximately $243,000. Prime Capital Investment Advisors LLC bought a new stake in shares of Affirm during the second quarter valued at approximately $224,000. Finally, KLP Kapitalforvaltning AS grew its stake in shares of Affirm by 5.1% during the second quarter. KLP Kapitalforvaltning AS now owns 51,600 shares of the company’s stock valued at $3,568,000 after purchasing an additional 2,500 shares during the last quarter. Institutional investors and hedge funds own 69.29% of the company’s stock.

Affirm Trading Down 4.0%

The company has a quick ratio of 12.80, a current ratio of 12.80 and a debt-to-equity ratio of 2.40. The business’s fifty day moving average is $71.53 and its two-hundred day moving average is $74.17. The firm has a market cap of $18.82 billion, a price-to-earnings ratio of 70.41, a price-to-earnings-growth ratio of 2.63 and a beta of 3.56.

Affirm (NASDAQ:AFRM) last posted its quarterly earnings data on Thursday, February 5th. The company reported $0.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.28 by $0.09. The firm had revenue of $1.12 billion for the quarter, compared to the consensus estimate of $1.06 billion. Affirm had a return on equity of 9.16% and a net margin of 7.60%.The business’s revenue for the quarter was up 29.6% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.23 EPS. Equities analysts anticipate that Affirm Holdings, Inc. will post -0.18 earnings per share for the current fiscal year.

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.