Affirm (NASDAQ:AFRM) Given New $110.00 Price Target at TD Cowen

Key Points

• TD Cowen lowered Affirm’s price target from $124 to $110 but maintained a “buy” rating, implying 45.76% upside from the prior close.
• Analyst sentiment remains positive, with 24 buy ratings and eight holds; the consensus rating is “Moderate Buy” with an average price target of $98.15.
• Affirm shares rose 1.0% to $75.47, while the company reported quarterly EPS of $4.62 versus the $0.35 consensus estimate and 33.1% year-over-year revenue growth. Insiders sold roughly $17.0 million of stock over the past three months.

Affirm (NASDAQ:AFRM - Get Free Report) had its price objective reduced by TD Cowen from $124.00 to $110.00 in a report issued on Tuesday, Benzinga reports. The firm currently has a "buy" rating on the stock. TD Cowen's price target would indicate a potential upside of 45.76% from the stock's previous close.

Several other equities analysts have also weighed in on AFRM. Compass Point set a $100.00 price objective on shares of Affirm in a report on Friday, July 17th. JPMorgan Chase & Co. lifted their target price on shares of Affirm from $90.00 to $105.00 and gave the stock an "overweight" rating in a report on Friday, August 28th. Bank of America upped their target price on shares of Affirm from $93.00 to $104.00 and gave the company a "buy" rating in a research report on Friday, August 28th. Loop Capital started coverage on Affirm in a research note on Wednesday, September 9th. They issued a "buy" rating and a $105.00 price target on the stock. Finally, Oppenheimer raised their price target on Affirm from $100.00 to $104.00 and gave the stock an "outperform" rating in a research report on Friday, August 28th. Twenty-four equities research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $98.15.

Affirm Trading Up 1.0%

AFRM traded up $0.72 during mid-day trading on Tuesday, reaching $75.47. The stock had a trading volume of 759,028 shares, compared to its average volume of 5,218,347. The stock has a market capitalization of $25.46 billion, a P/E ratio of 13.65, a P/E/G ratio of 2.89 and a beta of 3.82. The company has a debt-to-equity ratio of 1.82, a quick ratio of 11.80 and a current ratio of 11.80. The firm's fifty day simple moving average is $73.38 and its two-hundred day simple moving average is $68.52. Affirm has a 52 week low of $42.10 and a 52 week high of $90.44.

Affirm (NASDAQ:AFRM - Get Free Report) last released its earnings results on Thursday, August 27th. The company reported $4.62 earnings per share for the quarter, topping analysts' consensus estimates of $0.35 by $4.27. Affirm had a return on equity of 47.91% and a net margin of 45.29%.The company had revenue of $1.07 billion during the quarter, compared to the consensus estimate of $1.11 billion. During the same quarter in the previous year, the company posted $0.20 earnings per share. The firm's quarterly revenue was up 33.1% on a year-over-year basis. On average, equities analysts predict that Affirm will post 1.87 EPS for the current year.

Insider Activity at Affirm

In other Affirm news, CAO Siphelele Jiyane sold 26,980 shares of the firm's stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $72.19, for a total transaction of $1,947,686.20. Following the sale, the chief accounting officer directly owned 188,711 shares in the company, valued at approximately $13,623,047.09. This trade represents a 12.51% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Katherine Adkins sold 41,664 shares of Affirm stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $75.53, for a total transaction of $3,146,881.92. Following the completion of the transaction, the insider directly owned 152,439 shares in the company, valued at approximately $11,513,717.67. The trade was a 21.46% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 214,527 shares of company stock worth $16,974,716. 11.01% of the stock is owned by company insiders.

Institutional Investors Weigh In On Affirm

Large investors have recently made changes to their positions in the stock. Jericho Capital Asset Management L.P. lifted its position in Affirm by 7.5% in the 4th quarter. Jericho Capital Asset Management L.P. now owns 3,601,248 shares of the company's stock valued at $268,041,000 after acquiring an additional 251,000 shares in the last quarter. Atreides Management LP increased its holdings in Affirm by 566.1% during the 4th quarter. Atreides Management LP now owns 1,384,941 shares of the company's stock worth $103,081,000 after purchasing an additional 1,177,036 shares in the last quarter. Spyglass Capital Management LLC increased its holdings in Affirm by 15.2% during the 1st quarter. Spyglass Capital Management LLC now owns 1,662,325 shares of the company's stock worth $76,168,000 after purchasing an additional 218,745 shares in the last quarter. Bank of New York Mellon Corp acquired a new stake in shares of Affirm in the 2nd quarter valued at about $75,121,000. Finally, Dimensional Fund Advisors LP raised its stake in shares of Affirm by 11.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,574,660 shares of the company's stock valued at $72,100,000 after purchasing an additional 166,252 shares during the period. Institutional investors own 69.29% of the company's stock.

About Affirm

Affirm Holdings, Inc NASDAQ: AFRM operates a digital commerce and financial services platform that enables consumers to pay for purchases over time. Its point-of-sale financing products allow eligible customers to use installment loans, including both short-term and longer-duration payment options, with terms and costs disclosed before purchase.

Affirm's services are offered through its merchant partners' online and in-store checkout experiences, as well as through the Affirm app and website.

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