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

Key Points

• Affirm Holdings received a “Moderate Buy” consensus from 29 analysts, with 19 buy ratings and an average 12-month price target of $88.48.
• The company reported strong quarterly earnings, posting EPS of $0.30 versus expectations of $0.17, while revenue rose 32.7% year over year to $943.95 million.
• Insider activity was notably negative, as COO Michael Linford sold 100,000 shares and insiders sold a total of 104,000 shares in the last quarter; meanwhile, institutional ownership remains high at 69.29%.

Shares of Affirm Holdings, Inc. (NASDAQ:AFRM - Get Free Report) have been assigned an average rating of "Moderate Buy" from the twenty-nine analysts that are presently covering the firm, MarketBeat.com reports. Nine research analysts have rated the stock with a hold recommendation, nineteen have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1 year target price among brokerages that have issued a report on the stock in the last year is $88.48.

AFRM has been the topic of a number of research analyst reports. Robert W. Baird set a $70.00 price objective on shares of Affirm in a research note on Friday, May 8th. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Affirm in a research report on Wednesday, June 24th. Royal Bank Of Canada lifted their price target on Affirm from $77.00 to $80.00 and gave the stock a "sector perform" rating in a research note on Friday, May 8th. Morgan Stanley set a $79.00 price objective on Affirm and gave the company an "overweight" rating in a report on Sunday, May 10th. Finally, UBS Group upped their price objective on Affirm from $78.00 to $82.00 and gave the company a "neutral" rating in a research note on Monday, May 11th.

Insider Buying and Selling

In related news, COO Michael Linford sold 100,000 shares of the company's stock in a transaction that occurred on Friday, June 26th. The stock was sold at an average price of $80.04, for a total transaction of $8,004,000.00. Following the sale, the chief operating officer directly owned 117,984 shares of the company's stock, valued at approximately $9,443,439.36. This represents a 45.87% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Noel Bertram Watson sold 2,000 shares of the company's stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $65.00, for a total value of $130,000.00. Following the sale, the director directly owned 36,076 shares in the company, valued at approximately $2,344,940. This represents a 5.25% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 104,000 shares of company stock valued at $8,244,000 over the last quarter. Company insiders own 11.01% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of AFRM. Versant Capital Management Inc lifted its holdings in Affirm by 34.7% in the second quarter. Versant Capital Management Inc now owns 4,652 shares of the company's stock worth $379,000 after acquiring an additional 1,199 shares during the last quarter. CX Institutional grew its holdings in shares of Affirm by 2,724.3% during the second quarter. CX Institutional now owns 1,045 shares of the company's stock valued at $85,000 after purchasing an additional 1,008 shares during the last quarter. Parallel Advisors LLC raised its position in shares of Affirm by 11.9% during the 1st quarter. Parallel Advisors LLC now owns 4,497 shares of the company's stock worth $206,000 after purchasing an additional 480 shares during the period. NewEdge Advisors LLC raised its position in shares of Affirm by 25.4% during the 1st quarter. NewEdge Advisors LLC now owns 29,160 shares of the company's stock worth $1,336,000 after purchasing an additional 5,914 shares during the period. Finally, Spyglass Capital Management LLC lifted its holdings in shares of Affirm by 15.2% in the 1st quarter. Spyglass Capital Management LLC now owns 1,662,325 shares of the company's stock worth $76,168,000 after purchasing an additional 218,745 shares during the last quarter. 69.29% of the stock is owned by institutional investors and hedge funds.

Affirm Stock Down 0.9%

NASDAQ AFRM traded down $0.79 during mid-day trading on Tuesday, reaching $84.99. 467,502 shares of the company's stock traded hands, compared to its average volume of 5,707,335. The company has a current ratio of 11.32, a quick ratio of 11.32 and a debt-to-equity ratio of 2.39. Affirm has a 1-year low of $42.10 and a 1-year high of $100.00. The company has a fifty day simple moving average of $70.14 and a 200-day simple moving average of $63.36. The company has a market cap of $28.46 billion, a price-to-earnings ratio of 77.37, a P/E/G ratio of 3.48 and a beta of 3.67.

Affirm (NASDAQ:AFRM - Get Free Report) last announced its earnings results on Thursday, May 7th. The company reported $0.30 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.17 by $0.13. Affirm had a return on equity of 11.17% and a net margin of 9.63%.The company had revenue of $943.95 million for the quarter, compared to analyst estimates of $995.27 million. During the same period in the prior year, the company posted $0.01 EPS. Affirm's quarterly revenue was up 32.7% on a year-over-year basis. As a group, equities research analysts expect that Affirm will post 1.24 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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