Wedbush has recently raised Affirm Holdings Inc (AFRM) stock to Neutral rating, as announced on October 14, 2024, according to Finviz. Earlier, on October 11, 2024, Wells Fargo had raised the stock from a Equal Weight to Overweight, setting a price target of $52 for AFRM stock. Morgan Stanley also raised rating with a price target of $37. Additionally, BTIG Research raised Buy rating on October 8, 2024, with a target price of $68. Susquehanna analysts, in their report published on September 20, 2024, also initiated Positive rating for Affirm Holdings Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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Affirm Holdings Inc (AFRM) Stock Trading Recap
On Tuesday, Affirm Holdings Inc (AFRM) stock saw a modest uptick, ending the day at $45.6 which represents a slight increase of $1.91 or 4.37% from the prior close of $43.69. The stock opened at $43.62 and touched a low of $43.33 during the day, reaching a high of $46.14. The volume of shares traded was 7.23 million falling short of the average volume of 9.71 million.
AFRM Stock Performance and Moving Averages
In recent trading, Affirm Holdings Inc (AFRM) stock price has shown some volatility, fluctuating 6.37% over the last five trades and 18.13% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 30.66%, and it has gained 89.05% in the previous three months. Currently, AFRM is trading at 3.09%, 8.09%, and 28.51% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, AFRM, a Technology sector stock, is trading -13.11% below its 52-week high but remains 125.74% above its 52-week low. The Average True Range (ATR) (14 days) of 2.53 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Affirm Holdings Inc’s Profitability and Valuation Ratios
Affirm Holdings Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of -3.63% and a profit margin of -22.29%, with a gross margin of 30.66%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Affirm Holdings Inc’s market capitalization stands at $14.39 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The forward P/E ratio, which uses projected earnings for the next financial year, is 67.53. Additionally, the Price-to-Sales Ratio is 6.19, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 5.19, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 19.04% of Affirm Holdings Inc (AFRM)’s shares, while financial institutions hold 64.16%.
Notable insider trades include Adkins Katherine, Chief Legal Officer at Affirm Holdings Inc (AFRM), who sold 82316 shares on Sep 18 ’24, at $45 each, totaling $3.70 million. On Sep 17 ’24, Adkins Katherine, Chief Legal Officer, sold 46600 shares for $45 each, amounting to $2.10 million. Additionally, on Sep 16 ’24, Adkins Katherine sold 6084 shares at $45 each, generating $0.27 million.
