Affirm (NASDAQ:AFRM) Stock Price Target Cut by The Goldman Sachs Group

Key Points

• Goldman Sachs cut Affirm’s price target from $115 to $103 while maintaining a “buy” rating, implying roughly 31% upside from the prior close.
• Analyst sentiment remains positive overall: Affirm has a “Moderate Buy” consensus rating and an average price target of $97.69, based on 24 Buy and eight Hold ratings.
• Affirm reported quarterly EPS of $4.62, well above the $0.35 consensus estimate, while revenue rose 33.1% year over year to $1.07 billion; the stock opened at $78.63 and was down 2.6%.

Affirm (NASDAQ:AFRM - Get Free Report) had its target price lowered by equities research analysts at The Goldman Sachs Group from $115.00 to $103.00 in a report issued on Tuesday, Benzinga reports. The brokerage currently has a "buy" rating on the stock. The Goldman Sachs Group's price target indicates a potential upside of 30.99% from the company's previous close.

Several other brokerages have also recently issued reports on AFRM. Scotiabank started coverage on shares of Affirm in a report on Wednesday, September 2nd. They issued a "sector outperform" rating and a $95.00 target price on the stock. JPMorgan Chase & Co. upped their price target on shares of Affirm from $90.00 to $105.00 and gave the company an "overweight" rating in a report on Friday, August 28th. BMO Capital Markets reiterated an "outperform" rating on shares of Affirm in a report on Wednesday, September 9th. Robert W. Baird increased their price target on shares of Affirm from $70.00 to $82.00 and gave the company a "neutral" rating in a research report on Tuesday, July 14th. Finally, Royal Bank Of Canada raised their price target on shares of Affirm from $80.00 to $96.00 and gave the stock a "sector perform" rating in a report on Friday, August 28th. Twenty-four investment analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $97.69.

Affirm Trading Down 2.6%

Shares of AFRM stock opened at $78.63 on Tuesday. The stock has a market capitalization of $26.53 billion, a PE ratio of 14.24, a P/E/G ratio of 3.30 and a beta of 3.82. Affirm has a 1-year low of $42.10 and a 1-year high of $90.44. The business has a 50-day moving average of $73.86 and a 200 day moving average of $69.66. The company has a debt-to-equity ratio of 1.82, a current ratio of 11.80 and a quick ratio of 11.80.

Affirm (NASDAQ:AFRM - Get Free Report) last announced its quarterly earnings results on Thursday, August 27th. The company reported $4.62 EPS 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 business had revenue of $1.07 billion for the quarter, compared to analysts' expectations of $1.11 billion. During the same period in the previous year, the firm earned $0.20 EPS. The business's quarterly revenue was up 33.1% on a year-over-year basis. As a group, sell-side analysts anticipate that Affirm will post 1.87 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider Katherine Adkins sold 41,664 shares of the business'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 transaction of $3,146,881.92. Following the transaction, the insider directly owned 152,439 shares of the company's stock, valued at approximately $11,513,717.67. The trade was a 21.46% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Siphelele Jiyane sold 26,980 shares of the business'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 value of $1,947,686.20. Following the transaction, the chief accounting officer directly owned 188,711 shares in the company, valued at $13,623,047.09. This trade represents a 12.51% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 214,527 shares of company stock worth $16,974,716. 11.01% of the stock is currently owned by company insiders.

Institutional Trading of Affirm

Large investors have recently added to or reduced their stakes in the stock. GK Wealth Management LLC bought a new stake in Affirm during the third quarter worth about $88,000. Rhodes Investment Advisors Inc. ADV grew its holdings in Affirm by 1.3% in the third quarter. Rhodes Investment Advisors Inc. ADV now owns 11,378 shares of the company's stock worth $788,000 after purchasing an additional 149 shares during the period. Congress Asset Management Co. increased its stake in shares of Affirm by 3.0% during the third quarter. Congress Asset Management Co. now owns 439,115 shares of the company's stock valued at $30,400,000 after purchasing an additional 12,645 shares in the last quarter. QRG Capital Management Inc. increased its stake in shares of Affirm by 11.8% during the second quarter. QRG Capital Management Inc. now owns 10,829 shares of the company's stock valued at $883,000 after purchasing an additional 1,145 shares in the last quarter. Finally, Envestnet Portfolio Solutions Inc. purchased a new position in shares of Affirm during the second quarter valued at approximately $307,000. Institutional investors own 69.29% of the company's stock.

Affirm Company Profile

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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