Affirm Holdings, Inc. (NASDAQ:AFRM) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on Affirm, with 21 buy, three strong-buy and seven hold ratings among 31 brokerages. The average 12-month price target is $92.74.
• Affirm reported quarterly EPS of $0.30, beating estimates of $0.17, while revenue rose 32.7% year over year to $943.95 million but fell short of the $995.27 million consensus estimate.
• Institutional investors own 69.29% of Affirm, while insiders hold 11.01%; recent insider sales included the COO’s disposal of 100,000 shares under a pre-arranged Rule 10b5-1 plan.

Shares of Affirm Holdings, Inc. (NASDAQ:AFRM - Get Free Report) have received a consensus rating of "Moderate Buy" from the thirty-one brokerages that are presently covering the firm, MarketBeat.com reports. Seven analysts have rated the stock with a hold recommendation, twenty-one have issued a buy recommendation and three have issued a strong buy recommendation on the company. The average 1 year price target among analysts that have covered the stock in the last year is $92.7407.

A number of research firms have recently issued reports on AFRM. Deutsche Bank Aktiengesellschaft raised their price target on shares of Affirm from $80.00 to $85.00 and gave the stock a "buy" rating in a research report on Thursday, June 25th. Compass Point set a $100.00 price objective on shares of Affirm in a research report on Friday, July 17th. Royal Bank Of Canada increased their price objective on shares of Affirm from $77.00 to $80.00 and gave the stock a "sector perform" rating in a research note on Friday, May 8th. Weiss Ratings reissued a "hold (c-)" rating on shares of Affirm in a report on Wednesday, June 24th. Finally, BMO Capital Markets assumed coverage on Affirm in a research note on Tuesday, April 21st. They issued an "outperform" rating and a $75.00 target price for the company.

Insider Buying and Selling

In related news, Director Noel Bertram Watson sold 2,000 shares of the firm's stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $65.00, for a total value of $130,000.00. Following the sale, the director owned 36,076 shares of the company's stock, valued at approximately $2,344,940. This trade represents a 5.25% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Michael Linford sold 100,000 shares of the business's stock in a transaction that occurred on Friday, June 26th. The shares were sold at an average price of $80.04, for a total value of $8,004,000.00. Following the transaction, the chief operating officer owned 117,984 shares of the company's stock, valued at $9,443,439.36. This represents a 45.87% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 11.01% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Affirm

Several hedge funds and other institutional investors have recently modified their holdings of AFRM. SBI Securities Co. Ltd. increased its stake in shares of Affirm by 83.4% during the fourth quarter. SBI Securities Co. Ltd. now owns 48,504 shares of the company's stock valued at $3,610,000 after acquiring an additional 22,054 shares during the period. Capelight Capital Asset Management LP bought a new stake in Affirm during the fourth quarter worth approximately $4,912,000. Geode Capital Management LLC lifted its position in Affirm by 6.4% in the fourth quarter. Geode Capital Management LLC now owns 5,501,387 shares of the company's stock worth $408,433,000 after purchasing an additional 329,312 shares during the period. Vanguard Group Inc. lifted its position in Affirm by 1.8% in the fourth quarter. Vanguard Group Inc. now owns 24,847,206 shares of the company's stock worth $1,849,378,000 after purchasing an additional 428,138 shares during the period. Finally, Legal & General Group Plc boosted its stake in Affirm by 25.4% during the 4th quarter. Legal & General Group Plc now owns 605,521 shares of the company's stock valued at $45,069,000 after purchasing an additional 122,584 shares in the last quarter. Institutional investors and hedge funds own 69.29% of the company's stock.

Affirm Stock Performance

AFRM stock opened at $71.51 on Friday. The company has a current ratio of 11.32, a quick ratio of 11.32 and a debt-to-equity ratio of 2.39. The firm has a market cap of $23.95 billion, a P/E ratio of 65.01, a P/E/G ratio of 2.98 and a beta of 3.67. Affirm has a 12-month low of $42.10 and a 12-month high of $100.00. The stock's 50 day simple moving average is $74.54 and its 200 day simple moving average is $63.42.

Affirm (NASDAQ:AFRM - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported $0.30 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.17 by $0.13. Affirm had a return on equity of 11.17% and a net margin of 9.63%.The firm had revenue of $943.95 million for the quarter, compared to analysts' expectations of $995.27 million. During the same period last year, the business posted $0.01 earnings per share. The firm's revenue for the quarter was up 32.7% on a year-over-year basis. As a group, equities research analysts predict that Affirm will post 1.23 EPS for the current year.

About Affirm

Affirm Holdings, Inc is a financial technology company that provides point-of-sale consumer lending and payments solutions for online and in-store purchases. Its core product is a buy-now-pay-later (BNPL) platform that enables consumers to split purchases into fixed, transparent installment loans with no hidden fees. Affirm offers a range of financing options through merchant integrations, a consumer-facing mobile app and virtual card capabilities, and tools for merchants to offer alternative payment methods at checkout.

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