Affirm Holdings Inc. [AFRM] Stock trading around $136.16 per share: What’s Next?

Affirm Holdings Inc. [NASDAQ: AFRM] slipped around -2.97 points on Friday, while shares priced at $136.16 at the close of the session, down -2.13%. The company report on November 19, 2021 that Affirm Holdings, Inc. Announces Pricing of Upsized Private Offering of $1.5 Billion of 0% Convertible Senior Notes Due 2026.

Affirm Holdings, Inc. (Nasdaq: AFRM) (“Affirm” or the “Company”) announced the pricing of $1.5 billion aggregate principal amount of 0% Convertible Senior Notes due 2026 (the “Notes”) in a private offering (the “Offering”). The size of the Offering was increased from the previously announced $1.25 billion in aggregate principal amount. In connection with the Offering, Affirm has granted the initial purchasers of the Notes an option to purchase, within a 13-day period beginning on, and including, the date on which the Notes are first issued, up to an additional $225 million aggregate principal amount of the Notes on the same terms and conditions. The sale of the Notes to the initial purchasers is expected to settle on November 23, 2021, subject to customary closing conditions.


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The Notes will not bear regular interest, and the principal amount of the Notes will not accrete. When issued, the Notes will be senior, unsecured obligations of Affirm. The Notes will mature on November 15, 2026, unless earlier repurchased, redeemed or converted in accordance with their terms prior to such date. Affirm may not redeem the Notes prior to November 20, 2024. Affirm may redeem for cash all or any portion of the Notes, at its option, on or after November 20, 2024, but only if the last reported sale price per share of Affirm’s Class A common stock exceeds 130% of the conversion price for a specified period of time.

Compared to the average trading volume of 14.84M shares, AFRM reached a trading volume of 10580749 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Affirm Holdings Inc. [AFRM]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for AFRM shares is $163.43 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on AFRM stock is a recommendation set at 2.40. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

SMBC Nikko have made an estimate for Affirm Holdings Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on November 03, 2021. While these analysts kept the previous recommendation, RBC Capital Mkts raised their target price from $124 to $130. The new note on the price target was released on September 10, 2021, representing the official price target for Affirm Holdings Inc. stock. Previously, the target price had yet another raise from $120 to $140, while Morgan Stanley kept a Overweight rating on AFRM stock. On September 10, 2021, analysts increased their price target for AFRM shares from 56 to 82.

The Average True Range (ATR) for Affirm Holdings Inc. is set at 11.47, with the Price to Sales ratio for AFRM stock in the period of the last 12 months amounting to 45.39. The Price to Book ratio for the last quarter was 14.95, with the Price to Cash per share for the same quarter was set at 5.11.

How has AFRM stock performed recently?

Affirm Holdings Inc. [AFRM] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -8.61. With this latest performance, AFRM shares dropped by -12.35% in over the last four-week period, additionally plugging by 156.18% over the last 6 months.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for AFRM stock in for the last two-week period is set at 43.45, with the RSI for the last a single of trading hit 37.32, and the three-weeks RSI is set at 47.72 for Affirm Holdings Inc. [AFRM]. The present Moving Average for the last 50 days of trading for this stock 138.43, while it was recorded at 145.26 for the last single week of trading, and 89.20 for the last 200 days.

Affirm Holdings Inc. [AFRM]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Affirm Holdings Inc. [AFRM] shares currently have an operating margin of -7.34 and a Gross Margin at +89.23. Affirm Holdings Inc.’s Net Margin is presently recorded at -49.50.

Return on Total Capital for AFRM is now -2.19, given the latest momentum, and Return on Invested Capital for the company is -18.06. Return on Equity for this stock declined to -28.55, with Return on Assets sitting at -13.75. When it comes to the capital structure of this company, Affirm Holdings Inc. [AFRM] has a Total Debt to Total Equity ratio set at 74.86. Additionally, AFRM Total Debt to Total Capital is recorded at 42.81, with Total Debt to Total Assets ending up at 39.70. Long-Term Debt to Equity for the company is recorded at 67.92, with the Long-Term Debt to Total Capital now at 38.84.

Reflecting on the efficiency of the workforce at the company, Affirm Holdings Inc. [AFRM] managed to generate an average of -$262,598 per employee. Receivables Turnover for the company is 11.56 with a Total Asset Turnover recorded at a value of 0.28.

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Insider trade positions for Affirm Holdings Inc. [AFRM]

There are presently around $16,796 million, or 55.10% of AFRM stock, in the hands of institutional investors. The top three institutional holders of AFRM stocks are: CAPITAL RESEARCH GLOBAL INVESTORS with ownership of 14,458,147, which is approximately 100.077% of the company’s market cap and around 0.70% of the total institutional ownership; PRICE T ROWE ASSOCIATES INC /MD/, holding 11,124,234 shares of the stock with an approximate value of $1.51 billion in AFRM stocks shares; and BAILLIE GIFFORD & CO, currently with $1.47 billion in AFRM stock with ownership of nearly -0.27% of the company’s market capitalization.

Positions in Affirm Holdings Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 224 institutional holders increased their position in Affirm Holdings Inc. [NASDAQ:AFRM] by around 54,738,524 shares. Additionally, 106 investors decreased positions by around 20,660,280 shares, while 39 investors held positions by with 47,957,826 shares. The mentioned changes placed institutional holdings at 123,356,630 shares, according to the latest SEC report filing. AFRM stock had 148 new institutional investments in for a total of 22,531,845 shares, while 37 institutional investors sold positions of 7,707,615 shares during the same period.