Affirm (NASDAQ:AFRM) Shares Down 4.9% Following Analyst Downgrade

Shares of Affirm Holdings, Inc. (NASDAQ:AFRM) traded down 4.9% during trading 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 commented on the stock. TD Cowen reiterated a “buy” rating on shares of Affirm in a research note on Friday. The Goldman Sachs Group set a $83.00 price objective on shares of Affirm in a report on Friday. Truist Financial cut their price objective on shares of Affirm from $90.00 to $85.00 and set a “buy” rating for the company in a research report on Wednesday, November 19th. Stephens decreased their target price on Affirm from $75.00 to $65.00 and set an “equal weight” rating on the stock in a research report on Friday. Finally, Susquehanna restated a “positive” rating and set a $100.00 price target on shares of Affirm in a research note on Friday. Two research analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat, Affirm currently has an average rating of “Moderate Buy” and a consensus price target of $87.21.

Insider Transactions at Affirm

In other Affirm news, CEO Max R. Levchin sold 666,666 shares of Affirm stock in a transaction that occurred on Monday, January 5th. The stock was sold at an average price of $80.62, for a total transaction of $53,746,612.92. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CFO Robert O’hare sold 36,401 shares of the company’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 value of $2,912,080.00. Following the completion of the sale, the chief financial officer owned 1,368 shares in the company, valued at approximately $109,440. This represents a 96.38% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 711,256 shares of company stock worth $57,231,923. 11.01% of the stock is currently owned by insiders.

Affirm News Summary

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)

Institutional Trading of Affirm

Large investors have recently bought and sold shares of the stock. Royal Bank of Canada boosted its stake in shares of Affirm by 2.1% in the 1st quarter. Royal Bank of Canada now owns 193,601 shares of the company’s stock valued at $8,748,000 after purchasing an additional 3,892 shares in the last quarter. Empowered Funds LLC increased its position in shares of Affirm by 90.7% during the 1st quarter. Empowered Funds LLC now owns 16,852 shares of the company’s stock worth $762,000 after purchasing an additional 8,014 shares in the last quarter. Focus Partners Wealth bought a new position in Affirm during the 1st quarter valued at about $243,000. Prime Capital Investment Advisors LLC acquired a new position in Affirm in the second quarter valued at about $224,000. Finally, KLP Kapitalforvaltning AS grew its stake in Affirm by 5.1% during the second quarter. KLP Kapitalforvaltning AS now owns 51,600 shares of the company’s stock worth $3,568,000 after buying an additional 2,500 shares during the last quarter. 69.29% of the stock is currently owned by institutional investors.

Affirm Price Performance

The stock has a market capitalization of $18.82 billion, a P/E ratio of 70.41, a PEG ratio of 2.53 and a beta of 3.56. The company’s 50 day simple moving average is $71.53 and its two-hundred day simple moving average is $74.23. The company has a debt-to-equity ratio of 2.40, a current ratio of 12.80 and a quick ratio of 12.80.

Affirm (NASDAQ:AFRM) last announced its earnings results on Thursday, February 5th. The company reported $0.37 EPS for the quarter, topping the consensus estimate of $0.28 by $0.09. The business 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%.Affirm’s revenue was up 29.6% compared to the same quarter last year. During the same period in the previous year, the business earned $0.23 EPS. As a group, equities analysts expect that Affirm Holdings, Inc. will post -0.18 EPS 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.