Affirm (NASDAQ:AFRM) Raised to "Buy" at Rothschild & Co Redburn

Key Points

• Affirm's upgrade: Rothschild & Co Redburn upgraded Affirm from a "neutral" to a "buy" rating, with a new target price of $101, reflecting a potential upside of approximately 35%.
• Positive quarterly earnings: Affirm reported earnings of $0.20 per share, surpassing analyst expectations, and a revenue increase of 32.9% year-over-year.
• Insider trading: Significant insider sales occurred, including CEO Max R. Levchin selling over 651,000 shares, indicating potential concerns or profit-taking among executives.

Affirm (NASDAQ:AFRM - Get Free Report) was upgraded by investment analysts at Rothschild & Co Redburn from a "neutral" rating to a "buy" rating in a report issued on Monday,Benzinga reports. The brokerage presently has a $101.00 target price on the stock, up from their prior target price of $74.00. Rothschild & Co Redburn's target price points to a potential upside of 34.97% from the company's previous close.

A number of other research analysts also recently commented on the stock. Morgan Stanley set a $90.00 target price on Affirm in a report on Friday, August 29th. Barclays lifted their price target on Affirm from $67.00 to $80.00 and gave the company an "overweight" rating in a research note on Monday, June 30th. Redburn Atlantic upgraded shares of Affirm to a "hold" rating in a research report on Friday, August 1st. Needham & Company LLC restated a "hold" rating on shares of Affirm in a report on Wednesday, July 2nd. Finally, JMP Securities boosted their price target on Affirm from $75.00 to $105.00 and gave the stock a "market outperform" rating in a report on Friday, August 29th. One investment analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and eleven have given a Hold rating to the company. According to MarketBeat.com, Affirm currently has an average rating of "Moderate Buy" and an average price target of $82.04.

Affirm Trading Down 3.4%

Shares of AFRM stock opened at $74.83 on Monday. The stock has a market cap of $24.37 billion, a price-to-earnings ratio of 575.66, a PEG ratio of 4.86 and a beta of 3.58. Affirm has a twelve month low of $30.90 and a twelve month high of $100.00. The company has a current ratio of 11.54, a quick ratio of 11.54 and a debt-to-equity ratio of 2.55. The company's 50-day moving average price is $79.46 and its 200-day moving average price is $63.24.

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

Insider Buying and Selling at Affirm

In other Affirm news, insider Katherine Adkins sold 36,878 shares of the business's stock in a transaction dated Friday, August 29th. The shares were sold at an average price of $95.00, for a total value of $3,503,410.00. Following the transaction, the insider directly owned 113,400 shares in the company, valued at $10,773,000. The trade was a 24.54% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Max R. Levchin sold 651,713 shares of the company's stock in a transaction that occurred on Monday, September 22nd. The stock was sold at an average price of $89.27, for a total transaction of $58,178,419.51. The disclosure for this sale can be found here. Insiders sold 1,844,552 shares of company stock valued at $154,885,240 over the last quarter. Company insiders own 11.82% of the company's stock.

Hedge Funds Weigh In On Affirm

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Aaron Wealth Advisors LLC boosted its stake in Affirm by 30.3% in the 3rd quarter. Aaron Wealth Advisors LLC now owns 4,265 shares of the company's stock worth $312,000 after purchasing an additional 993 shares during the period. GAMMA Investing LLC boosted its holdings in shares of Affirm by 4.4% during the 3rd quarter. GAMMA Investing LLC now owns 4,850 shares of the company's stock worth $354,000 after buying an additional 206 shares during the period. Corient Private Wealth LLC increased its stake in shares of Affirm by 93.0% during the second quarter. Corient Private Wealth LLC now owns 16,217 shares of the company's stock worth $1,121,000 after purchasing an additional 7,816 shares during the period. Orion Porfolio Solutions LLC acquired a new position in Affirm in the 2nd quarter valued at $598,000. Finally, Thrivent Financial for Lutherans acquired a new stake in shares of Affirm during the second quarter worth $3,648,000. 69.29% of the stock is owned by institutional investors.

Affirm Company Profile

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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