Affirm (NASDAQ:AFRM) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded Affirm (AFRM) from "strong-buy" to "hold" and several other brokers have trimmed targets and ratings, leaving a MarketBeat consensus of "Moderate Buy" with a $83.76 price target.
• Affirm beat recent quarterly estimates (EPS $0.37 vs. $0.28, revenue $1.12B, +29.6% YoY) but trades around $64.28—well below the consensus target—and carries a high valuation (PE ~79.4).

Affirm (NASDAQ:AFRM - Get Free Report) was downgraded by analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued to investors on Wednesday,Zacks.com reports.

A number of other research analysts have also weighed in on AFRM. Oppenheimer decreased their target price on Affirm from $95.00 to $83.00 and set an "outperform" rating on the stock in a report on Friday, February 6th. The Goldman Sachs Group lowered Affirm from a "buy" rating to a "hold" rating in a report on Tuesday, February 24th. Robert W. Baird began coverage on Affirm in a report on Thursday, February 19th. They set a "neutral" rating and a $55.00 target price on the stock. Needham & Company LLC decreased their target price on Affirm from $100.00 to $85.00 and set a "buy" rating on the stock in a report on Friday, February 6th. Finally, Bank of America began coverage on Affirm in a report on Thursday, March 5th. They set a "buy" rating and a $82.00 target price on the stock. One analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $83.76.

Affirm Stock Up 1.3%

AFRM stock opened at $64.28 on Wednesday. The company has a current ratio of 11.41, a quick ratio of 11.41 and a debt-to-equity ratio of 2.58. The firm has a market capitalization of $21.41 billion, a PE ratio of 79.36, a PEG ratio of 4.44 and a beta of 3.63. Affirm has a 1-year low of $42.10 and a 1-year high of $100.00. The business's 50 day simple moving average is $51.59 and its 200 day simple moving average is $63.37.

Affirm (NASDAQ:AFRM - Get Free Report) last posted its earnings results on Thursday, February 5th. The company reported $0.37 earnings per share for the quarter, topping analysts' consensus estimates of $0.28 by $0.09. The business had revenue of $1.12 billion for the quarter, compared to analyst estimates of $1.06 billion. Affirm had a return on equity of 8.83% and a net margin of 7.60%.The firm's revenue was up 29.6% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.23 EPS. As a group, research analysts anticipate that Affirm will post 1.08 EPS for the current year.

Insider Transactions at Affirm

In related news, Director Noel Bertram Watson sold 2,000 shares of the business's stock in a transaction on Tuesday, April 14th. The stock was sold at an average price of $55.00, for a total value of $110,000.00. Following the completion of the sale, the director directly owned 38,076 shares in the company, valued at $2,094,180. The trade was a 4.99% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 11.01% of the stock is owned by company insiders.

Institutional Trading of Affirm

Several institutional investors have recently added to or reduced their stakes in AFRM. Yousif Capital Management LLC lifted its position in shares of Affirm by 5.1% during the 3rd quarter. Yousif Capital Management LLC now owns 3,243 shares of the company's stock valued at $237,000 after acquiring an additional 158 shares during the period. Farther Finance Advisors LLC lifted its position in shares of Affirm by 13.2% during the 3rd quarter. Farther Finance Advisors LLC now owns 1,471 shares of the company's stock valued at $108,000 after acquiring an additional 171 shares during the period. Assetmark Inc. lifted its position in shares of Affirm by 111.3% during the 3rd quarter. Assetmark Inc. now owns 338 shares of the company's stock valued at $25,000 after acquiring an additional 178 shares during the period. Mount Vernon Associates Inc. MD lifted its position in shares of Affirm by 0.5% during the 4th quarter. Mount Vernon Associates Inc. MD now owns 42,925 shares of the company's stock valued at $3,195,000 after acquiring an additional 200 shares during the period. Finally, Fifth Third Bancorp lifted its position in shares of Affirm by 63.6% during the 4th quarter. Fifth Third Bancorp now owns 522 shares of the company's stock valued at $39,000 after acquiring an additional 203 shares during the period. 69.29% of the stock is currently owned by institutional investors.

Affirm Company Profile

Affirm Holdings, Inc is a financial technology company that provides point-of-sale consumer lending and payments solutions for online and in-store purchases. Its core product is a buy-now-pay-later (BNPL) platform that enables consumers to split purchases into fixed, transparent installment loans with no hidden fees. Affirm offers a range of financing options through merchant integrations, a consumer-facing mobile app and virtual card capabilities, and tools for merchants to offer alternative payment methods at checkout.

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