Affirm Sees Unusually Large Options Volume (NASDAQ:AFRM)

Key Points

• Affirm Holdings witnessed a notable increase in options trading, with 88,456 call options purchased on a recent Monday, marking a 49% rise from its usual volume.
• The company reported earnings of $0.20 per share for the last quarter, surpassing analyst expectations, along with revenue growth of 32.9% year-over-year.
• Insider transactions included significant stock sales by CEO Max R. Levchin and COO Michael Linford, who sold over 683,000 shares combined, raising concerns about insider confidence.

Affirm Holdings, Inc. (NASDAQ:AFRM - Get Free Report) was the target of unusually large options trading on Monday. Stock traders purchased 88,456 call options on the company. This is an increase of 49% compared to the typical volume of 59,494 call options.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the company. Needham & Company LLC reiterated a "hold" rating on shares of Affirm in a research note on Wednesday, July 2nd. Stephens started coverage on shares of Affirm in a report on Thursday, June 12th. They issued an "equal weight" rating and a $69.00 price target for the company. Oppenheimer set a $80.00 price objective on shares of Affirm and gave the stock an "outperform" rating in a research note on Monday, July 21st. Barclays raised their price objective on shares of Affirm from $67.00 to $80.00 and gave the stock an "overweight" rating in a research note on Monday, June 30th. Finally, Citigroup reaffirmed an "outperform" rating on shares of Affirm in a research 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 issued a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $80.04.

Affirm Stock Performance

AFRM traded up $4.78 during midday trading on Monday, hitting $87.86. 6,830,771 shares of the company were exchanged, compared to its average volume of 7,471,617. The company's 50 day simple moving average is $74.89 and its 200 day simple moving average is $60.00. The firm has a market capitalization of $28.61 billion, a price-to-earnings ratio of 676.06, a price-to-earnings-growth ratio of 5.39 and a beta of 3.64. The company has a current ratio of 11.54, a quick ratio of 11.54 and a debt-to-equity ratio of 2.55. Affirm has a 1-year low of $30.90 and a 1-year high of $100.00.

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

Insider Buying and Selling

In related news, CEO Max R. Levchin sold 499,223 shares of Affirm stock in a transaction on Thursday, August 28th. The stock was sold at an average price of $80.17, for a total transaction of $40,022,707.91. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, COO Michael Linford sold 184,200 shares of Affirm stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $80.09, for a total value of $14,752,578.00. Following the sale, the chief operating officer directly owned 109,840 shares of the company's stock, valued at $8,797,085.60. This represents a 62.64% decrease in their position. The disclosure for this sale can be found here. Insiders sold 1,257,997 shares of company stock valued at $101,089,204 in the last 90 days. Corporate insiders own 11.82% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in AFRM. Vanguard Group Inc. lifted its stake in shares of Affirm by 4.0% during the second quarter. Vanguard Group Inc. now owns 24,195,810 shares of the company's stock valued at $1,672,898,000 after buying an additional 922,813 shares during the period. Durable Capital Partners LP increased its position in shares of Affirm by 12.3% in the second quarter. Durable Capital Partners LP now owns 7,389,337 shares of the company's stock worth $510,899,000 after acquiring an additional 808,455 shares in the last quarter. Geode Capital Management LLC grew its holdings in Affirm by 5.8% during the 2nd quarter. Geode Capital Management LLC now owns 4,659,287 shares of the company's stock valued at $322,195,000 after purchasing an additional 254,359 shares in the last quarter. Price T Rowe Associates Inc. MD grew its holdings in Affirm by 140.8% during 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 purchasing an additional 2,657,074 shares in the last quarter. Finally, State Street Corp grew its holdings in Affirm by 3.8% during the 2nd quarter. State Street Corp now owns 4,454,300 shares of the company's stock valued at $307,970,000 after purchasing an additional 161,522 shares in the last quarter. 69.29% of the stock is currently owned by institutional investors and hedge funds.

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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