How Affirm Holdings Inc. (AFRM) Works From A Technical Perspective

Affirm Holdings Inc. (NASDAQ:AFRM) finished Wednesday with an addition of $5.46 to close at $146.13, an upside of 3.88 percent. An average of 28,837,260 shares of common stock have been traded in the last five days. There was a gain of $12.43 in the past week. The last 20 days have seen an average of 19,533,881 shares traded, while the 50-day average volume stands at 13,418,868.

AFRM stock has increased by 35.23% in the last month. The company shares reached their 1-month lowest point of $104.00 on 09/21/21. Shares of the company touched a low of $46.50 and a high of $146.90 in 52 weeks. In spite of this, the price is down -0.52% from the 52-week high.


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Insider Transactions

213 days have passed since Affirm Holdings Inc. (AFRM) last reported insider trading activity. Jiyane Siphelele, who is Vice President, Controller, most recently acquired $12,137 shares at $81.18 per share on Mar 15. In this transaction, the insider spent $985,293. Chief Financial Officer, Linford Michael, disposed of 25,000 shares at a price of $81.67 on Mar 04. The insider now owns more than $2,041,830 worth of shares. Prior to that, Chief Financial Officer Linford Michael went on to Sale 43,380 shares at $90.78 each on Mar 03. An amount of $3,937,871 was transacted.

Valuation Metrics

Affirm Holdings Inc. (AFRM) has a trailing price-to-earnings (P/E) ratio of 29.20 for the broader industry and 37.24 for the sector. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 48.27, the price-to-book (PB) ratio at 16.04.

Further, the company has a long term debt to equity ratio of 0.72 and a total debt to equity ratio of 0.72 for the quarter ending June 29. Affirm Holdings Inc.’s EBITDA margin for the year ending June 29 is -5.04%, while its operating margin for the same period stands at -48.60%. Its gross profit as reported stood at $487.92 million compared to revenue of $870.46 million.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Affirm Holdings Inc.’s return on assets was -11.80%. For the broader industry, ROE averaged 3.34 over the past year.

Earnings Surprise

The analyst consensus anticipated Affirm Holdings Inc.’s latest quarter earnings to come in at -$0.29 per share, but it turned out to be -$0.48, a -65.50% surprise. For the quarter, EBITDA amounted to -$133.43 million. Shareholders own equity worth $271.88 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Affirm Holdings Inc. (AFRM) price momentum. RSI 9-day as of the close on 13 October was 69.54%, suggesting the stock is Neutral, with historical volatility in this time frame at 111.05%.

As of today, AFRM’s price is $139.38 +9.30% or $12.43 from its 5-day moving average. AFRM is currently trading +33.15% higher than its 20-day SMA and +173.86% higher than its 100-day SMA. However, the stock’s current price level is +119.18% above the SMA50.

The stochastic %K and %D were 83.09% and 82.59%, respectively, and the average true range (ATR) was 11.69. With the 14-day stochastic at 90.68% and the average true range at 11.03, the RSI (14) stands at 67.27%. The stock has reached 10.85 on the 9-day MACD Oscillator while the 14-day reading was at 14.44.

Analyst Ratings

RBC Capital Mkts reiterated its an Outperform rating on Affirm Holdings Inc. (NASDAQ: AFRM), but raised their price target to $124, indicating a potential price decrease of -15.14% for the stock.The consensus rating for Affirm Holdings Inc. (AFRM) among analysts is Overweight. According to current brokerage recommendations, 1 brokerage firm advise that investors sell AFRM, while 4 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 6 others rate it as a “buy”.

What is AFRM’s price target for the next 12 months?

Analysts predict a range of price targets between $65.00 and $160.00, with a median target of $130.00. Taking a look at these predictions, the average price target given by analysts for Affirm Holdings Inc. (AFRM) stock is $124.09.

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