Shares of buy now, pay later company Affirm (NASDAQ:AFRM) fell 2.1% in the morning session after the stock's negative momentum continued as the company's Chief Executive Officer, Max R Levchin, disclosed the sale of a substantial number of shares.

According to a regulatory filing, Levchin, who is also a director and a 10% owner, sold 651,713 shares for a total value of approximately $58.2 million. Such a large transaction by a top executive prompted concern among investors. Significant insider sales can be viewed as a potential signal of an executive's confidence in a company's short-term growth prospects, which contributed to the negative market reaction.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Affirm? Access our full analysis report here, it’s free.

Affirm’s shares are extremely volatile and have had 57 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 2 days ago when the stock dropped 3.1% on the news that an SEC filing revealed that co-founder and major shareholder Maksim Levchin planned to sell a large block of shares. 

Affirm is up 27.3% since the beginning of the year, but at $79.57 per share, it is still trading 13.7% below its 52-week high of $92.18 from September 2025. Investors who bought $1,000 worth of Affirm’s shares at the IPO in January 2021 would now be looking at an investment worth $818.28.

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