Affirm (NASDAQ:AFRM) Lowered to Hold Rating by Wall Street Zen

Key Points

• Affirm's stock rating was downgraded from "buy" to "hold" by Wall Street Zen in a recent research report.
• Despite the downgrade, analysts like Oppenheimer and Jefferies maintain positive outlooks, with target prices ranging from $76.00 to $100.00.
• Affirm reported a significant increase in revenue of 32.9% year-over-year, reaching $876.42 million, exceeding analysts' expectations.

Affirm (NASDAQ:AFRM - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Saturday.

AFRM has been the subject of several other research reports. Rothschild & Co Redburn started coverage on shares of Affirm in a research report on Friday, August 1st. They set a "neutral" rating and a $74.00 price target for the company. Barclays upped their price target on shares of Affirm from $67.00 to $80.00 and gave the stock an "overweight" rating in a research report on Monday, June 30th. Bank of America upped their price target on shares of Affirm from $90.00 to $94.00 and gave the stock a "buy" rating in a research report on Friday, August 29th. Deutsche Bank Aktiengesellschaft started coverage on shares of Affirm in a research report on Thursday, July 17th. They set a "buy" rating and a $78.00 price target for the company. Finally, Morgan Stanley set a $90.00 price target on shares of Affirm in a research report on Friday, August 29th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and eleven have assigned a Hold rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $80.04.

Affirm Stock Performance

Shares of NASDAQ:AFRM traded up $0.53 on Friday, reaching $89.96. 7,320,168 shares of the company's stock were exchanged, compared to its average volume of 7,491,417. The firm has a market capitalization of $29.30 billion, a price-to-earnings ratio of 692.05, a PEG ratio of 5.39 and a beta of 3.64. Affirm has a fifty-two week low of $30.90 and a fifty-two week high of $100.00. The business's 50-day moving average is $75.25 and its two-hundred day moving average is $60.17. The company has a quick ratio of 11.54, a current ratio of 11.54 and a debt-to-equity ratio of 2.55.

Affirm (NASDAQ:AFRM - Get Free Report) last issued its earnings results on Thursday, August 28th. The company reported $0.20 earnings per share for the quarter, topping analysts' consensus estimates of $0.11 by $0.09. The company had revenue of $876.42 million for the quarter, compared to analysts' expectations of $834.94 million. Affirm had a net margin of 1.62% and a return on equity of 1.80%. The firm's revenue was up 32.9% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.14) earnings per share. Affirm has set its FY 2026 guidance at EPS. Q1 2026 guidance at EPS. As a group, equities research analysts forecast that Affirm will post -0.18 EPS for the current year.

Insider Buying and Selling

In related news, CEO Max R. Levchin sold 499,223 shares of the firm's stock in a transaction that occurred on Thursday, August 28th. The shares were sold at an average price of $80.17, for a total transaction of $40,022,707.91. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, CAO Siphelele Jiyane sold 25,533 shares of the firm's stock in a transaction that occurred on Thursday, September 4th. The stock was sold at an average price of $90.71, for a total transaction of $2,316,098.43. Following the sale, the chief accounting officer owned 226,467 shares of the company's stock, valued at approximately $20,542,821.57. This represents a 10.13% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 1,270,497 shares of company stock valued at $102,156,954. Company insiders own 11.82% of the company's stock.

Institutional Trading of Affirm

Several institutional investors have recently made changes to their positions in the stock. Farther Finance Advisors LLC raised its position in shares of Affirm by 15.6% in the second quarter. Farther Finance Advisors LLC now owns 1,300 shares of the company's stock valued at $90,000 after purchasing an additional 175 shares during the period. KLP Kapitalforvaltning AS raised its position in shares of Affirm by 0.4% in the first quarter. KLP Kapitalforvaltning AS now owns 49,100 shares of the company's stock valued at $2,219,000 after purchasing an additional 200 shares during the period. Allworth Financial LP raised its position in shares of Affirm by 63.7% in the first quarter. Allworth Financial LP now owns 563 shares of the company's stock valued at $27,000 after purchasing an additional 219 shares during the period. Sei Investments Co. raised its position in shares of Affirm by 0.6% in the first quarter. Sei Investments Co. now owns 41,066 shares of the company's stock valued at $1,856,000 after purchasing an additional 226 shares during the period. Finally, HB Wealth Management LLC raised its position in shares of Affirm by 2.2% in the first quarter. HB Wealth Management LLC now owns 11,471 shares of the company's stock valued at $518,000 after purchasing an additional 252 shares during the period. 69.29% of the stock is currently owned by institutional investors and hedge funds.

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.