Affirm Sees Unusually High Options Volume (NASDAQ:AFRM)

Affirm Holdings, Inc. (NASDAQ:AFRM) was the target of unusually large options trading activity on Wednesday. Traders acquired 71,417 call options on the stock. This is an increase of approximately 37% compared to the typical daily volume of 51,953 call options.

Affirm Price Performance

Shares of AFRM stock opened at $61.05 on Friday. Affirm has a 52-week low of $22.25 and a 52-week high of $82.53. The stock has a market cap of $19.69 billion, a PE ratio of -93.92 and a beta of 3.58. The company has a debt-to-equity ratio of 2.68, a quick ratio of 11.26 and a current ratio of 11.26. The firm’s 50 day moving average price is $49.59 and its two-hundred day moving average price is $56.93.

Affirm (NASDAQ:AFRM) last announced its quarterly earnings data on Thursday, May 8th. The company reported $0.01 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.09) by $0.10. Affirm had a negative net margin of 7.10% and a negative return on equity of 7.25%. The firm had revenue of $783.14 million for the quarter, compared to analysts’ expectations of $782.98 million. During the same period last year, the firm earned ($0.43) earnings per share. The business’s revenue for the quarter was up 35.9% on a year-over-year basis. As a group, analysts forecast that Affirm will post -0.18 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on AFRM. Royal Bank of Canada reaffirmed a “sector perform” rating and set a $70.00 price target on shares of Affirm in a report on Thursday, June 5th. Bank of America raised their price target on Affirm from $76.00 to $80.00 and gave the company a “buy” rating in a report on Friday, May 9th. Barclays reaffirmed an “overweight” rating and set a $67.00 price target (up from $53.00) on shares of Affirm in a report on Monday. Wells Fargo & Company dropped their target price on shares of Affirm from $85.00 to $67.00 and set an “overweight” rating for the company in a research note on Wednesday, April 9th. Finally, JPMorgan Chase & Co. dropped their target price on shares of Affirm from $74.00 to $69.00 and set an “overweight” rating for the company in a research note on Friday, May 9th. Nine investment analysts have rated the stock with a hold rating, sixteen have given a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $65.05.

Insider Transactions at Affirm

In related news, Director Noel Bertram Watson sold 2,500 shares of the firm’s stock in a transaction on Monday, March 17th. The stock was sold at an average price of $45.78, for a total transaction of $114,450.00. Following the completion of the sale, the director now directly owns 38,997 shares of the company’s stock, valued at $1,785,282.66. This trade represents a 6.02% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Keith Rabois sold 16,089 shares of the firm’s stock in a transaction on Thursday, May 1st. The shares were sold at an average price of $51.00, for a total value of $820,539.00. Following the sale, the director now directly owns 29,343 shares of the company’s stock, valued at $1,496,493. This represents a 35.41% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 34,677 shares of company stock valued at $1,665,545. 11.82% of the stock is owned by insiders.

Hedge Funds Weigh In On Affirm

Several institutional investors have recently modified their holdings of the stock. KLP Kapitalforvaltning AS grew its position in shares of Affirm by 0.4% during the 1st quarter. KLP Kapitalforvaltning AS now owns 49,100 shares of the company’s stock worth $2,219,000 after buying an additional 200 shares during the period. Allworth Financial LP grew its position in shares of Affirm by 63.7% during the 1st quarter. Allworth Financial LP now owns 563 shares of the company’s stock worth $27,000 after buying an additional 219 shares during the period. Sei Investments Co. grew its position in shares of Affirm by 0.6% during the 1st quarter. Sei Investments Co. now owns 41,066 shares of the company’s stock worth $1,856,000 after buying an additional 226 shares during the period. HB Wealth Management LLC grew its position in shares of Affirm by 2.2% during the 1st quarter. HB Wealth Management LLC now owns 11,471 shares of the company’s stock worth $518,000 after buying an additional 252 shares during the period. Finally, Amalgamated Bank increased its position in shares of Affirm by 2.1% in the 1st quarter. Amalgamated Bank now owns 13,773 shares of the company’s stock valued at $622,000 after buying an additional 280 shares in the last quarter. 69.29% of the stock is currently owned by institutional investors and hedge funds.

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.