Affirm (NASDAQ:AFRM) Earns "Overweight" Rating from Cantor Fitzgerald

Key Points

• Cantor Fitzgerald reaffirmed an “Overweight” rating on Affirm and set an $88 price target, implying approximately 13.6% upside. Across analysts, the stock carries a “Moderate Buy” consensus rating with an average target of $95.19.
• Affirm reported quarterly EPS of $4.62, substantially above the roughly $0.35 consensus estimate, while revenue rose 33.1% year over year to $1.07 billion but fell slightly short of expectations.
• The stock opened at $77.49, with a market capitalization of about $25.95 billion and a 12-month trading range of $42.10 to $100.00. The company’s elevated valuation and high beta of 3.71 indicate meaningful volatility and execution risk.

Affirm (NASDAQ:AFRM - Get Free Report)'s stock had its "overweight" rating reaffirmed by analysts at Cantor Fitzgerald in a note issued to investors on Friday,Benzinga reports. They currently have a $88.00 price target on the stock. Cantor Fitzgerald's price objective would suggest a potential upside of 13.56% from the company's current price.

A number of other research analysts have also commented on AFRM. TD Cowen upped their price target on Affirm from $90.00 to $117.00 and gave the company a "buy" rating in a research report on Tuesday, July 7th. Weiss Ratings reiterated a "hold (c-)" rating on shares of Affirm in a research report on Wednesday, June 24th. Citigroup reissued a "market outperform" rating on shares of Affirm in a research note on Friday. Wolfe Research restated an "outperform" rating on shares of Affirm in a report on Friday. Finally, BMO Capital Markets raised their price target on Affirm from $78.00 to $86.00 and gave the stock an "outperform" rating in a research note on Wednesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat.com, Affirm has an average rating of "Moderate Buy" and an average price target of $95.19.

Affirm Price Performance

AFRM stock opened at $77.49 on Friday. The firm's 50-day moving average price is $77.37 and its two-hundred day moving average price is $64.50. Affirm has a 12-month low of $42.10 and a 12-month high of $100.00. The stock has a market capitalization of $25.95 billion, a price-to-earnings ratio of 70.45, a PEG ratio of 3.10 and a beta of 3.71. The company has a current ratio of 11.32, a quick ratio of 11.32 and a debt-to-equity ratio of 2.39.

Affirm (NASDAQ:AFRM - Get Free Report) last issued its quarterly earnings data on Thursday, August 27th. The company reported $4.62 EPS for the quarter, beating the consensus estimate of $0.35 by $4.27. The firm had revenue of $1.07 billion during the quarter, compared to the consensus estimate of $1.11 billion. Affirm had a net margin of 9.63% and a return on equity of 11.17%. The company's quarterly revenue was up 33.1% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.20 earnings per share. As a group, equities analysts predict that Affirm will post 1.24 earnings per share for the current year.

Insiders Place Their Bets

In other Affirm news, COO Michael Linford sold 100,000 shares of Affirm stock in a transaction that occurred on Friday, June 26th. The stock was sold at an average price of $80.04, for a total transaction of $8,004,000.00. Following the sale, the chief operating officer directly owned 117,984 shares of the company's stock, valued at approximately $9,443,439.36. The trade was a 45.87% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 11.01% of the company's stock.

Institutional Investors Weigh In On Affirm

Several hedge funds have recently made changes to their positions in the company. SBI Securities Co. Ltd. lifted its position in Affirm by 83.4% during the fourth quarter. SBI Securities Co. Ltd. now owns 48,504 shares of the company's stock valued at $3,610,000 after buying an additional 22,054 shares during the period. Geode Capital Management LLC boosted its stake in Affirm by 6.4% during the fourth quarter. Geode Capital Management LLC now owns 5,501,387 shares of the company's stock worth $408,433,000 after acquiring an additional 329,312 shares in the last quarter. SteelPeak Wealth LLC purchased a new position in shares of Affirm during the first quarter valued at approximately $935,000. Legal & General Group Plc increased its position in Affirm by 25.4% during the 4th quarter. Legal & General Group Plc now owns 605,521 shares of the company's stock valued at $45,069,000 after buying an additional 122,584 shares in the last quarter. Finally, Artemis Investment Management LLP grew its stake in shares of Affirm by 75.9% in the fourth quarter. Artemis Investment Management LLP now owns 793,941 shares of the company's stock worth $59,093,000 after acquiring an additional 342,669 shares during the last quarter. 69.29% of the stock is currently owned by institutional investors.

Key Affirm News

Here are the key news stories impacting Affirm this week:

• Positive Sentiment: Large EPS beat: Affirm reported quarterly earnings of $4.62 per share, far above the roughly $0.33–$0.35 consensus estimate and up from $0.20 a year earlier. Affirm Q4 Earnings and Revenues Beat Estimates
• Positive Sentiment: Strong operating metrics: Fiscal fourth-quarter revenue increased 33.1% year over year to $1.07 billion, while gross merchandise volume reportedly exceeded expectations. Affirm also highlighted continued growth in smaller, everyday purchases, suggesting broader BNPL adoption beyond major-ticket items. Affirm Stock Jumps After Earnings
• Positive Sentiment: International expansion: Affirm and Shopify launched Shop Pay Installments in Australia. The rollout gives Affirm access to Shopify’s Australian merchant and shopper ecosystem and extends the companies’ exclusive installments partnership. Affirm and Shopify Launch Shop Pay Installments in Australia
• Neutral Sentiment: Forward outlook: Affirm’s first-quarter fiscal 2027 revenue guidance is approximately $1.2 billion, broadly in line with consensus. Investors will focus on the company’s full-year outlook and whether growth and profitability can justify the stock’s elevated valuation.
• Neutral Sentiment: Analyst support was modest: Morgan Stanley raised its price target from $79 to $80 while retaining an Equal Weight rating, implying limited near-term upside. RBC Capital Markets maintained a Hold view. Morgan Stanley Raises Affirm Price Target
• Negative Sentiment: Valuation and revenue caveat: Although profitability and transaction volume were strong, reported revenue of $1.07 billion was slightly below the $1.11 billion consensus cited in company coverage. Zacks also downgraded Affirm from Strong Buy to Hold, reinforcing concerns about valuation and execution risk. Affirm Q4 Key Metrics

About Affirm

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source