Affirm (NASDAQ:AFRM) Stock Lifted to "Moderate Buy" by Dbs Bank

Key Points

• Dbs Bank upgraded Affirm to “Moderate Buy,” aligning with the broader analyst consensus. Twenty-five analysts rate the stock a Buy and eight rate it a Hold, with an average price target of $98.78.
• Affirm reported quarterly EPS of $4.62, far exceeding the $0.35 consensus estimate, while revenue rose 33.1% year over year to $1.07 billion, slightly below expectations.
• Shares opened at $69.23 and were down 0.1%; insiders have sold 214,527 shares worth approximately $17.0 million over the past 90 days, while institutional investors own 69.29% of the stock.

Affirm (NASDAQ:AFRM - Get Free Report) was upgraded by stock analysts at Dbs Bank to a "moderate buy" rating in a report released on Wednesday, Zacks reports.

Several other analysts have also weighed in on AFRM. Zacks Research lowered Affirm from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 25th. Wells Fargo & Company lifted their target price on Affirm from $89.00 to $96.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 8th. Barclays lifted their target price on Affirm from $97.00 to $105.00 and gave the stock an "overweight" rating in a research report on Friday, August 28th. TD Cowen boosted their price target on Affirm from $117.00 to $124.00 and gave the company a "buy" rating in a report on Friday, August 28th. Finally, Morgan Stanley upped their price target on Affirm from $80.00 to $82.00 and gave the company an "equal weight" rating in a research report on Friday, August 28th. Twenty-five equities research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $98.78.

Affirm Trading Down 0.1%

NASDAQ AFRM opened at $69.23 on Wednesday. Affirm has a 12 month low of $42.10 and a 12 month high of $90.44. The company has a debt-to-equity ratio of 1.82, a current ratio of 11.80 and a quick ratio of 11.80. The company has a market capitalization of $23.36 billion, a price-to-earnings ratio of 12.54, a price-to-earnings-growth ratio of 2.83 and a beta of 3.61. The company's fifty day moving average price is $73.35 and its two-hundred day moving average price is $68.00.

Affirm (NASDAQ:AFRM - Get Free Report) last announced its quarterly earnings data on Thursday, August 27th. The company reported $4.62 earnings per share for the quarter, topping the consensus estimate of $0.35 by $4.27. Affirm had a net margin of 45.29% and a return on equity of 47.91%. The company had revenue of $1.07 billion during the quarter, compared to analyst estimates of $1.11 billion. During the same period last year, the business earned $0.20 EPS. The firm's revenue for the quarter was up 33.1% compared to the same quarter last year. As a group, research analysts predict that Affirm will post 1.87 earnings per share for the current fiscal year.

Insider Activity

In related news, insider Katherine Adkins sold 41,664 shares of the firm's stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $75.53, for a total value of $3,146,881.92. Following the sale, the insider directly owned 152,439 shares in the company, valued at $11,513,717.67. This trade represents a 21.46% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Michael Linford sold 79,219 shares of Affirm stock in a transaction on Friday, August 28th. The shares were sold at an average price of $90.01, for a total value of $7,130,502.19. Following the sale, the chief operating officer directly owned 120,713 shares in the company, valued at $10,865,377.13. The trade was a 39.62% 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. Over the last 90 days, insiders have sold 214,527 shares of company stock valued at $16,974,716. Insiders own 11.01% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. TD Waterhouse Canada Inc. grew its position in Affirm by 386.5% in the 2nd quarter. TD Waterhouse Canada Inc. now owns 51,844 shares of the company's stock valued at $4,228,000 after buying an additional 41,187 shares in the last quarter. SteelPeak Wealth LLC bought a new stake in shares of Affirm during the 1st quarter worth about $935,000. Dimensional Fund Advisors LP lifted 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 worth $72,100,000 after acquiring an additional 166,252 shares during the period. Nykredit A S acquired a new stake in shares of Affirm in the 2nd quarter worth approximately $7,170,000. Finally, Royal Bank of Canada boosted its holdings in shares of Affirm by 8.4% in the first quarter. Royal Bank of Canada now owns 318,783 shares of the company's stock valued at $14,607,000 after acquiring an additional 24,583 shares in the last quarter. 69.29% of the stock is owned by institutional investors and hedge funds.

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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