Affirm (NASDAQ:AFRM) Reaches New 1-Year High on Strong Earnings

Key Points

• Affirm Holdings reached a new 52-week high, trading at $100.00 after reporting strong earnings, with an EPS of $0.20, exceeding estimates of $0.11.
• CEO Max R. Levchin and COO Michael Linford sold significant shares of Affirm stock, with Levchin selling 167,443 shares valued at approximately $13.4 million.
• JPMorgan Chase & Co. upgraded Affirm’s price target from $69.00 to $84.00, while the company's stock currently has a consensus rating of "Moderate Buy" and a price target of $74.70.

Affirm Holdings, Inc. (NASDAQ:AFRM - Get Free Report) hit a new 52-week high on Friday following a stronger than expected earnings report. The stock traded as high as $100.00 and last traded at $94.80, with a volume of 10422019 shares. The stock had previously closed at $79.99.

The company reported $0.20 EPS for the quarter, beating analysts' consensus estimates of $0.11 by $0.09. The business had revenue of $876.42 million during the quarter, compared to the consensus estimate of $834.94 million. Affirm had a negative return on equity of 2.22% and a negative net margin of 2.07%.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 business earned ($0.14) earnings per share. Affirm has set its FY 2026 guidance at EPS. Q1 2026 guidance at EPS.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on the company. JPMorgan Chase & Co. lifted their price objective on Affirm from $69.00 to $84.00 and gave the company an "overweight" rating in a research report on Tuesday, August 19th. Morgan Stanley set a $90.00 target price on Affirm in a report on Friday. Deutsche Bank Aktiengesellschaft assumed coverage on Affirm in a report on Thursday, July 17th. They issued a "buy" rating and a $78.00 target price on the stock. Wall Street Zen cut Affirm from a "buy" rating to a "hold" rating in a report on Sunday, August 17th. Finally, Jefferies Financial Group raised their price objective on Affirm from $82.00 to $95.00 and gave the company a "buy" rating in a research report on Tuesday. One investment analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and eleven have assigned a Hold rating to the company. According to MarketBeat.com, Affirm presently has a consensus rating of "Moderate Buy" and a consensus price target of $74.70.

Insiders Place Their Bets

In other Affirm news, CEO Max R. Levchin sold 167,443 shares of Affirm stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $80.10, for a total value of $13,412,184.30. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, COO Michael Linford sold 184,200 shares of Affirm stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $80.09, for a total transaction of $14,752,578.00. Following the completion of the transaction, the chief operating officer directly owned 109,840 shares of the company's stock, valued at approximately $8,797,085.60. This represents a 62.64% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 629,715 shares of company stock valued at $49,194,321. 11.82% of the stock is owned by insiders.

Hedge Funds Weigh In On Affirm

A number of hedge funds have recently added to or reduced their stakes in AFRM. Farther Finance Advisors LLC increased its holdings in shares of Affirm by 15.6% during 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 increased its holdings in shares of Affirm by 0.4% during 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 increased its holdings in shares of Affirm by 63.7% during 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. increased its holdings in shares of Affirm by 0.6% during 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 increased its holdings in shares of Affirm by 2.2% during 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. Institutional investors and hedge funds own 69.29% of the company's stock.

Affirm Price Performance

The business has a fifty day moving average price of $70.66 and a 200 day moving average price of $59.21. The company has a market capitalization of $29.95 billion, a price-to-earnings ratio of -441.59, a price-to-earnings-growth ratio of 2.88 and a beta of 3.63. The company has a debt-to-equity ratio of 2.55, a current ratio of 11.47 and a quick ratio of 11.47.

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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