The Goldman Sachs Group Issues Pessimistic Forecast for Affirm (NASDAQ:AFRM) Stock Price

Affirm (NASDAQ:AFRM) had its price target reduced by analysts at The Goldman Sachs Group from $90.00 to $56.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The firm presently has a “buy” rating on the stock. The Goldman Sachs Group’s target price would indicate a potential upside of 26.92% from the stock’s previous close.

AFRM has been the subject of several other reports. Citizens Jmp upgraded shares of Affirm from a “hold” rating to a “strong-buy” rating in a research note on Friday, December 20th. Compass Point upgraded Affirm from a “sell” rating to a “neutral” rating and raised their target price for the company from $20.00 to $61.00 in a research report on Tuesday, January 28th. Needham & Company LLC reaffirmed a “hold” rating on shares of Affirm in a report on Friday, February 7th. Wells Fargo & Company raised their price objective on Affirm from $70.00 to $85.00 and gave the company an “overweight” rating in a report on Friday, February 7th. Finally, Morgan Stanley increased their target price on Affirm from $39.00 to $55.00 and gave the company an “equal weight” rating in a research report on Tuesday, January 28th. Nine research analysts have rated the stock with a hold rating, ten have assigned a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $68.24.

Affirm Stock Performance

NASDAQ:AFRM traded down $3.84 during mid-day trading on Tuesday, hitting $44.12. The company’s stock had a trading volume of 5,145,944 shares, compared to its average volume of 7,992,523. The business’s fifty day moving average is $61.57 and its two-hundred day moving average is $56.01. The stock has a market cap of $14.03 billion, a price-to-earnings ratio of -67.53 and a beta of 3.63. The company has a debt-to-equity ratio of 2.68, a current ratio of 11.26 and a quick ratio of 11.26. Affirm has a 1 year low of $22.25 and a 1 year high of $82.53.

Affirm (NASDAQ:AFRM) last issued its earnings results on Thursday, February 6th. The company reported $0.23 EPS for the quarter, topping analysts’ consensus estimates of ($0.21) by $0.44. Affirm had a negative return on equity of 7.25% and a negative net margin of 7.10%. Analysts anticipate that Affirm will post -0.18 EPS for the current fiscal year.

Insider Buying and Selling at Affirm

In other news, Director Keith Rabois sold 16,088 shares of the company’s stock in a transaction that occurred on Monday, March 3rd. The stock was sold at an average price of $63.97, for a total value of $1,029,149.36. Following the completion of the sale, the director now directly owns 61,520 shares in the company, valued at $3,935,434.40. This represents a 20.73 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Christa S. Quarles sold 5,000 shares of Affirm stock in a transaction that occurred on Friday, February 14th. The stock was sold at an average price of $80.00, for a total value of $400,000.00. Following the transaction, the director now owns 137,325 shares in the company, valued at approximately $10,986,000. The trade was a 3.51 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 59,801 shares of company stock worth $3,806,093. Insiders own 12.41% of the company’s stock.

Institutional Investors Weigh In On Affirm

A number of hedge funds have recently modified their holdings of AFRM. Durable Capital Partners LP boosted its holdings in Affirm by 97.3% in the 4th quarter. Durable Capital Partners LP now owns 5,858,283 shares of the company’s stock valued at $356,769,000 after purchasing an additional 2,888,827 shares during the last quarter. Norges Bank purchased a new stake in shares of Affirm during the 4th quarter valued at approximately $139,949,000. Capital International Investors acquired a new position in Affirm in the fourth quarter valued at approximately $100,030,000. Foxhaven Asset Management LP purchased a new position in Affirm in the fourth quarter worth approximately $80,917,000. Finally, Voloridge Investment Management LLC purchased a new position in Affirm in the fourth quarter worth approximately $76,738,000. Hedge funds and other 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.