Affirm (NASDAQ:AFRM) Shares Gap Up - Still a Buy?

Key Points

• Affirm Holdings, Inc. (AFRM) shares gapped up from $73.08 to $75.99 before trading, reaching a last price of $75.81 with significant trading volume of 1,692,008 shares.
• Analysts have a consensus rating of "Moderate Buy" for Affirm, with a price target averaging around $80.04, reflecting recent upgrades from firms like Bank of America and Barclays.
• Affirm reported a quarterly revenue of $876.42 million with an EPS of $0.20, exceeding analysts' expectations, and showing a revenue growth of 32.9% from the previous year.

Affirm Holdings, Inc. (NASDAQ:AFRM - Get Free Report) shares gapped up prior to trading on Wednesday . The stock had previously closed at $73.08, but opened at $75.99. Affirm shares last traded at $75.81, with a volume of 1,692,008 shares trading hands.

Analyst Ratings Changes

A number of equities analysts recently issued reports on AFRM shares. Bank of America upped their price target on Affirm from $90.00 to $94.00 and gave the company a "buy" rating in a report on Friday, August 29th. Barclays increased their price objective on Affirm from $67.00 to $80.00 and gave the company an "overweight" rating in a report on Monday, June 30th. Stephens assumed coverage on Affirm in a report on Thursday, June 12th. They issued an "equal weight" rating and a $69.00 price objective for the company. Susquehanna increased their price objective on Affirm from $65.00 to $76.00 and gave the company a "positive" rating in a report on Wednesday, July 23rd. Finally, Citigroup reissued an "outperform" rating on shares of Affirm in a report on Friday, August 29th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and eleven have given a Hold rating to the company's stock. According to MarketBeat, Affirm currently has a consensus rating of "Moderate Buy" and a consensus price target of $80.04.

Affirm Trading Up 3.5%

The company has a quick ratio of 11.54, a current ratio of 11.54 and a debt-to-equity ratio of 2.55. The company has a fifty day moving average of $78.90 and a two-hundred day moving average of $62.53. The stock has a market capitalization of $24.63 billion, a price-to-earnings ratio of 581.41, a P/E/G ratio of 4.97 and a beta of 3.64.

Affirm (NASDAQ:AFRM - Get Free Report) last released its earnings results on Thursday, August 28th. The company reported $0.20 EPS for the quarter, beating analysts' consensus estimates of $0.11 by $0.09. Affirm had a return on equity of 1.80% and a net margin of 1.62%.The company had revenue of $876.42 million during the quarter, compared to the consensus estimate of $834.94 million. During the same quarter last year, the company earned ($0.14) earnings per share. Affirm's quarterly revenue 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. On average, research analysts expect that Affirm Holdings, Inc. will post -0.18 EPS for the current year.

Insider Buying and Selling

In other news, CEO Max R. Levchin sold 651,713 shares of the firm's stock in a transaction on Monday, September 22nd. The stock was sold at an average price of $89.27, for a total value of $58,178,419.51. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Christa S. Quarles sold 15,000 shares of the firm's stock in a transaction on Friday, August 29th. The shares were sold at an average price of $93.00, for a total value of $1,395,000.00. Following the completion of the transaction, the director owned 122,241 shares of the company's stock, valued at approximately $11,368,413. This represents a 10.93% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 1,921,456 shares of company stock valued at $160,284,531 in the last quarter. Corporate insiders own 11.82% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Huntington National Bank increased its position in shares of Affirm by 634.0% in the second quarter. Huntington National Bank now owns 389 shares of the company's stock valued at $27,000 after buying an additional 336 shares in the last quarter. SouthState Corp increased its position in shares of Affirm by 190.5% in the second quarter. SouthState Corp now owns 427 shares of the company's stock valued at $30,000 after buying an additional 280 shares in the last quarter. Blume Capital Management Inc. increased its position in shares of Affirm by 468.8% in the second quarter. Blume Capital Management Inc. now owns 455 shares of the company's stock valued at $31,000 after buying an additional 375 shares in the last quarter. Allworth Financial LP increased its position 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 purchasing an additional 219 shares in the last quarter. Finally, UMB Bank n.a. increased its position in Affirm by 86.6% during the 2nd quarter. UMB Bank n.a. now owns 569 shares of the company's stock worth $39,000 after purchasing an additional 264 shares in the last quarter. 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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