Affirm (NASDAQ:AFRM) Stock Price Up 7.9% - What's Next?

Key Points

• Affirm's stock price increased by 7.9% to $71.68, with a significant drop in trading volume of 71% compared to its average daily volume.
• Analyst ratings for Affirm are mixed, with Bank of America raising its target price from $76 to $80 while UBS Group lowered its target from $62 to $56.
• Affirm reported a quarterly revenue of $783.14 million, marking a 35.9% increase year-over-year, alongside a positive earnings surprise of $0.01 per share.

Affirm Holdings, Inc. (NASDAQ:AFRM - Get Free Report)'s share price rose 7.9% during trading on Monday . The company traded as high as $71.48 and last traded at $71.68. Approximately 2,057,159 shares changed hands during mid-day trading, a decline of 71% from the average daily volume of 7,145,550 shares. The stock had previously closed at $66.41.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on AFRM shares. Bank of America lifted their target price on Affirm from $76.00 to $80.00 and gave the company a "buy" rating in a research report on Friday, May 9th. Evercore ISI initiated coverage on Affirm in a report on Wednesday, April 9th. They set an "outperform" rating and a $50.00 price objective for the company. UBS Group cut their price target on Affirm from $62.00 to $56.00 and set a "neutral" rating for the company in a research note on Friday, May 9th. JPMorgan Chase & Co. cut their target price on Affirm from $74.00 to $69.00 and set an "overweight" rating for the company in a research note on Friday, May 9th. Finally, BTIG Research cut Affirm from a "buy" rating to a "neutral" rating in a research note on Monday, July 14th. Eleven research analysts have rated the stock with a hold rating, eighteen have given a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $68.09.

Affirm Stock Up 12.6%

The company has a debt-to-equity ratio of 2.55, a quick ratio of 11.47 and a current ratio of 11.47. The stock has a market capitalization of $24.13 billion, a P/E ratio of -356.14, a P/E/G ratio of 2.46 and a beta of 3.63. The company's 50-day moving average price is $63.23 and its 200 day moving average price is $57.10.

Affirm (NASDAQ:AFRM - Get Free Report) last posted its earnings results on Thursday, May 8th. The company reported $0.01 earnings per share for the quarter, topping analysts' consensus estimates of ($0.09) by $0.10. Affirm had a negative net margin of 2.07% and a negative return on equity of 2.22%. The firm had revenue of $783.14 million for the quarter, compared to the consensus estimate of $782.98 million. During the same period in the previous year, the firm posted ($0.43) EPS. The business's quarterly revenue was up 35.9% on a year-over-year basis. As a group, equities analysts expect that Affirm Holdings, Inc. will post -0.18 earnings per share for the current year.

Insider Activity

In other Affirm news, insider Katherine Adkins sold 57,102 shares of the business's stock in a transaction dated Monday, July 7th. The shares were sold at an average price of $70.27, for a total value of $4,012,557.54. Following the completion of the sale, the insider directly owned 112,467 shares of the company's stock, valued at $7,903,056.09. The trade was a 33.67% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Christa S. Quarles sold 754 shares of the business's stock in a transaction dated Tuesday, July 1st. The shares were sold at an average price of $67.43, for a total transaction of $50,842.22. Following the completion of the sale, the director owned 137,241 shares of the company's stock, valued at approximately $9,254,160.63. This represents a 0.55% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 80,158 shares of company stock valued at $5,602,284 in the last quarter. 11.82% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of AFRM. Durable Capital Partners LP boosted its holdings in shares of Affirm by 97.3% in the 4th quarter. Durable Capital Partners LP now owns 5,858,283 shares of the company's stock valued at $356,769,000 after acquiring an additional 2,888,827 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its holdings in shares of Affirm by 140.8% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 4,544,132 shares of the company's stock valued at $205,350,000 after acquiring an additional 2,657,074 shares during the last quarter. Capital International Investors purchased a new stake in shares of Affirm in the 4th quarter valued at $100,030,000. Vanguard Group Inc. boosted its holdings in shares of Affirm by 6.7% in the 1st quarter. Vanguard Group Inc. now owns 23,272,997 shares of the company's stock valued at $1,051,707,000 after acquiring an additional 1,457,434 shares during the last quarter. Finally, Foxhaven Asset Management LP purchased a new stake in shares of Affirm in the 4th quarter valued at $80,917,000. Institutional investors and hedge funds 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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