Affirm (NASDAQ:AFRM) Shares Gap Up – Should You Buy?

Affirm Holdings, Inc. (NASDAQ:AFRM)’s stock price 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 changing hands.

Wall Street Analyst Weigh In

AFRM has been the topic of several analyst reports. BTIG Research upgraded Affirm from a “neutral” rating to a “buy” rating and set a $68.00 target price on the stock in a report on Tuesday, October 8th. Wedbush upgraded shares of Affirm from an “underperform” rating to a “neutral” rating and increased their price objective for the company from $25.00 to $45.00 in a research note on Monday, October 14th. Bank of America boosted their price objective on Affirm from $50.00 to $74.00 and gave the company a “buy” rating in a report on Friday, November 22nd. Needham & Company LLC reissued a “hold” rating on shares of Affirm in a report on Friday, September 6th. Finally, JPMorgan Chase & Co. increased their price objective on shares of Affirm from $56.00 to $74.00 and gave the stock an “overweight” rating in a research note on Monday, December 2nd. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating and nine have given a buy rating to the stock. According to data from MarketBeat, Affirm has an average rating of “Hold” and an average price target of $55.33.

Affirm Trading Up 2.8 %

The company has a market capitalization of $22.20 billion, a price-to-earnings ratio of -49.79 and a beta of 3.66. The business’s 50 day moving average price is $54.98 and its two-hundred day moving average price is $40.66. The company has a debt-to-equity ratio of 2.50, a quick ratio of 12.60 and a current ratio of 12.60.

Affirm (NASDAQ:AFRM) last released its earnings results on Thursday, November 7th. The company reported ($0.31) EPS for the quarter, topping analysts’ consensus estimates of ($0.36) by $0.05. The business had revenue of $698.48 million for the quarter, compared to the consensus estimate of $661.39 million. Affirm had a negative net margin of 17.67% and a negative return on equity of 12.57%. During the same period in the previous year, the firm earned ($0.57) EPS. Equities analysts forecast that Affirm Holdings, Inc. will post -0.53 earnings per share for the current fiscal year.

Insider Buying and Selling at Affirm

In related news, CFO Robert O’hare sold 100,938 shares of the stock in a transaction on Monday, November 11th. The stock was sold at an average price of $55.00, for a total transaction of $5,551,590.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Katherine Adkins sold 6,084 shares of Affirm stock in a transaction 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 directly owns 122,069 shares of the company’s stock, valued at approximately $5,493,105. The trade was a 4.75 % 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 valued at $88,673,393 in the last three months. 12.41% of the stock is currently owned by company insiders.

Institutional Trading of Affirm

Several large investors have recently made changes to their positions in AFRM. Comerica Bank lifted its position in Affirm by 16.2% during the 1st quarter. Comerica Bank now owns 6,109 shares of the company’s stock worth $228,000 after acquiring an additional 850 shares during the last quarter. Cetera Advisors LLC raised its position in shares of Affirm by 38.4% during the first quarter. Cetera Advisors LLC now owns 7,231 shares of the company’s stock valued at $269,000 after buying an additional 2,005 shares during the last quarter. ORG Partners LLC grew its position in Affirm by 80.0% during the second quarter. ORG Partners LLC now owns 1,240 shares of the company’s stock worth $37,000 after buying an additional 551 shares in the last quarter. Raymond James & Associates raised its holdings in Affirm by 40.1% in the 2nd quarter. Raymond James & Associates now owns 69,594 shares of the company’s stock valued at $2,102,000 after acquiring an additional 19,920 shares in the last quarter. Finally, Neo Ivy Capital Management bought a new stake in shares of Affirm in the 2nd quarter worth approximately $2,611,000. Institutional investors own 69.29% of the company’s stock.

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.