Keith Rabois, a director at Affirm Holdings , Inc. (NASDAQ:AFRM), has recently sold a total of 9,276 shares in the company, with the transactions amounting to over $267,000. The sales occurred on June 3, 2024, and were carried out under a prearranged trading plan.
The shares were sold at prices ranging from $28.8164 to $29.8, reflecting the market's valuation of Affirm Holdings' stock at the time of the transactions. The average sale price across the shares sold by Rabois was within the range of $28.57 to $29.51, as indicated by the weighted average provided in the footnotes of the SEC filing.
Following these transactions, Rabois still holds a substantial number of shares in Affirm Holdings, specifically 82,899 shares of Class A Common Stock. It's also noted that Rabois received 32,175 shares of Class A Common Stock as part of a pro rata distribution from Khosla Ventures, where no additional consideration was provided.
Investors and the market at large often look to the trading activities of insiders such as directors for insights into their perspective on the company's current valuation and future prospects. While these transactions can be part of personal financial planning or diversification strategies, they can also reflect the insiders' confidence in the company's direction.
The trading plan under which these shares were sold was established on December 14, 2023, and is in accordance with Rule 10b5-1, which allows company insiders to set up a predetermined plan for trading stock. Such plans are often used to sell shares over a determined period of time to avoid concerns about insider trading.
Affirm Holdings, a personal credit institution, has its shares publicly traded and continues to be a player in the financial industry, with its corporate activities being closely watched by investors and market analysts.
In other recent news, Affirm Holdings Inc. has been the subject of considerable discussion among investors and analysts. RBC Capital maintained its Sector Perform rating on Affirm, with a steady price target of $43.00, despite the challenging market conditions in the Buy Now, Pay Later (BNPL) sector. The firm also lowered its downside valuation for Affirm to $25 from the previous $30, reflecting potential market dynamics.
Meanwhile, BMO Capital Markets reduced the price target for Affirm to $46 from the previous $48, while retaining a Market Perform rating. This adjustment followed Affirm's third-quarter fiscal year 2024 results, which exceeded expectations, and the company's raised guidance for the near term.
In regulatory developments, the U.S. Consumer Financial Protection Bureau (CFPB) announced that it will extend certain consumer protection rules typically applied to credit cards to the BNPL industry, impacting companies including Affirm.
Lastly, in its recent earnings call, Affirm reported strong Gross Merchandise Value (GMV) growth and increased adoption of the Affirm Card, demonstrating resilience amidst rising interest rates. These are the latest developments in Affirm's ongoing operations and market activities.
InvestingPro Insights
Affirm Holdings, Inc. (NASDAQ:AFRM) has been a company of interest for investors, particularly as insider trading activities like those of director Keith Rabois can signal market sentiment. Delving into real-time data and insights from InvestingPro can provide a deeper understanding of Affirm's current financial health and market performance.
InvestingPro Data indicates that Affirm has a market capitalization of $9.57 billion, reflecting its scale in the personal credit industry. Despite the company's significant revenue growth of 40.05% in the last twelve months as of Q3 2024, the P/E ratio stands at -13.95, suggesting that the market is accounting for the company's lack of profitability during this period. Additionally, the stock has experienced a considerable 1-year price total return of 93.83%, showcasing a high return over the past year despite recent volatility.
Two InvestingPro Tips pertinent to Affirm's situation are that analysts have revised their earnings upwards for the upcoming period, and the stock generally trades with high price volatility. These tips are particularly relevant as they may explain the rationale behind Rabois's decision to sell shares. The company's stock price movements have been quite volatile, with a 1-month price total return of -13.71% and a 3-month price total return of -16.32%.
For those interested in gaining more insights into Affirm Holdings, Inc., InvestingPro offers additional tips that can help investors make informed decisions. As of now, there are 9 more tips available on InvestingPro for Affirm, which can be accessed for those seeking detailed analytics and forecasts. To benefit from these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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