Affirm (NASDAQ:AFRM) Given New $94.00 Price Target at Bank of America

Key Points

• Bank of America has raised its price target for Affirm (NASDAQ:AFRM) from $90.00 to $94.00, suggesting a potential upside of 17.51% from the company's previous closing price.
• Affirm reported better-than-expected quarterly earnings of $0.20 per share, surpassing analysts' estimates of $0.11, with a revenue of $876.42 million for the quarter.
• Insider trading activity reveals that CEO Max R. Levchin sold 167,443 shares for over $13 million, which raises concerns regarding potential insider sentiment on the stock.

Affirm (NASDAQ:AFRM - Get Free Report) had its price objective boosted by analysts at Bank of America from $90.00 to $94.00 in a report issued on Friday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. Bank of America's price objective would suggest a potential upside of 17.51% from the company's previous close.

Several other brokerages have also recently commented on AFRM. Zacks Research cut shares of Affirm from a "strong-buy" rating to a "hold" rating in a report on Wednesday, August 13th. Needham & Company LLC restated a "hold" rating on shares of Affirm in a research report on Wednesday, July 2nd. Rothschild & Co Redburn started coverage on Affirm in a research note on Friday, August 1st. They set a "neutral" rating and a $74.00 target price on the stock. The Goldman Sachs Group increased their target price on Affirm from $45.00 to $58.00 and gave the stock a "buy" rating in a research note on Monday, May 12th. Finally, Wall Street Zen lowered Affirm from a "buy" rating to a "hold" rating in a research note on Sunday, August 17th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and eleven have given a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $70.35.

Affirm Trading Up 3.1%

AFRM opened at $79.99 on Friday. The company has a debt-to-equity ratio of 2.55, a current ratio of 11.47 and a quick ratio of 11.47. The company has a market cap of $25.80 billion, a price-to-earnings ratio of -380.90, a price-to-earnings-growth ratio of 2.88 and a beta of 3.63. The firm has a 50 day simple moving average of $70.66 and a 200 day simple moving average of $59.21. Affirm has a fifty-two week low of $30.90 and a fifty-two week high of $82.53.

Affirm (NASDAQ:AFRM - Get Free Report) last issued its quarterly earnings data on Thursday, August 28th. The company reported $0.20 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.11 by $0.09. The firm had revenue of $876.42 million during the quarter, compared to analysts' expectations of $834.94 million. Affirm had a negative net margin of 2.07% and a negative return on equity of 2.22%. The business's revenue for the quarter was up 32.9% on a year-over-year basis. During the same quarter in the previous year, the company earned ($0.14) earnings per share. Affirm has set its FY 2026 guidance at EPS. Q1 2026 guidance at EPS. On average, sell-side analysts anticipate that Affirm will post -0.18 earnings per share for the current year.

Insider Activity at Affirm

In other Affirm news, CEO Max R. Levchin sold 167,443 shares of the company's stock in a transaction dated Friday, August 22nd. The stock was sold at an average price of $80.10, for a total transaction of $13,412,184.30. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Katherine Adkins sold 6,489 shares of the company's stock in a transaction dated Wednesday, August 6th. The stock was sold at an average price of $75.00, for a total value of $486,675.00. Following the sale, the insider owned 113,400 shares in the company, valued at approximately $8,505,000. This trade represents a 5.41% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 629,715 shares of company stock worth $49,194,321 over the last quarter. 11.82% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in AFRM. Allworth Financial LP grew its stake in Affirm by 63.7% during the 1st quarter. Allworth Financial LP now owns 563 shares of the company's stock worth $27,000 after buying an additional 219 shares during the last quarter. Huntington National Bank lifted its position in Affirm by 634.0% during the 2nd quarter. Huntington National Bank now owns 389 shares of the company's stock worth $27,000 after acquiring an additional 336 shares during the period. Itau Unibanco Holding S.A. acquired a new stake in Affirm during the 4th quarter worth approximately $28,000. SouthState Corp lifted its position in Affirm by 190.5% during the 2nd quarter. SouthState Corp now owns 427 shares of the company's stock worth $30,000 after acquiring an additional 280 shares during the period. Finally, Blume Capital Management Inc. lifted its position in Affirm by 468.8% during the 2nd quarter. Blume Capital Management Inc. now owns 455 shares of the company's stock worth $31,000 after acquiring an additional 375 shares during the period. Hedge funds and other institutional investors own 69.29% of the company's stock.

About Affirm

Affirm Holdings, Inc operates a platform for digital and mobile-first commerce in the United States, Canada, and internationally. The company's platform includes point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app. Its commerce platform, agreements with originating banks, and capital markets partners enables consumers to pay for a purchase over time with terms ranging up to 60 months.

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