Affirm (NASDAQ:AFRM) Stock Rating Raised to Strong-Buy at Zacks Research

Key Points

• Zacks Research upgraded Affirm from “hold” to “strong buy,” while the broader analyst consensus remains “moderate buy” with an average price target of $97.41.
• Affirm reported quarterly earnings of $4.62 per share, far above the $0.35 consensus estimate, while revenue rose 33.1% year over year to $1.07 billion.
• Affirm shares opened at $73.32, with institutional investors owning 69.29% of the stock; insiders have sold 280,118 shares worth about $22.2 million over the past 90 days.

Affirm (NASDAQ:AFRM - Get Free Report) was upgraded by investment analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued on Tuesday, Zacks reports.

Other research analysts also recently issued research reports about the stock. Oppenheimer upped their price target on shares of Affirm from $100.00 to $104.00 and gave the stock an "outperform" rating in a research report on Friday, August 28th. Morgan Stanley decreased their price objective on shares of Affirm from $82.00 to $79.00 and set an "equal weight" rating on the stock in a report on Monday. Wells Fargo & Company raised their price objective on shares of Affirm from $89.00 to $96.00 and gave the company an "overweight" rating in a research report on Wednesday, July 8th. UBS Group boosted their target price on shares of Affirm from $82.00 to $90.00 and gave the stock a "neutral" rating in a research note on Friday, August 28th. Finally, Truist Financial upped their target price on shares of Affirm from $85.00 to $88.00 and gave the stock a "buy" rating in a research report on Friday, October 23rd. One investment analyst has rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating and seven have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $97.41.

Affirm Price Performance

NASDAQ:AFRM opened at $73.32 on Tuesday. The company has a quick ratio of 11.80, a current ratio of 11.80 and a debt-to-equity ratio of 1.82. The firm has a market cap of $24.74 billion, a PE ratio of 13.28, a price-to-earnings-growth ratio of 2.81 and a beta of 3.82. Affirm has a 12 month low of $42.10 and a 12 month high of $90.44. The company's 50-day moving average price is $73.16 and its two-hundred day moving average price is $66.64.

Affirm (NASDAQ:AFRM - Get Free Report) last posted 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. The company had revenue of $1.07 billion during the quarter, compared to analyst estimates of $1.11 billion. Affirm had a net margin of 45.29% and a return on equity of 47.91%. The company's revenue was up 33.1% on a year-over-year basis. During the same quarter last year, the business posted $0.20 earnings per share. On average, equities analysts anticipate that Affirm will post 1.91 EPS for the current fiscal year.

Insider Buying and Selling at Affirm

In other Affirm news, insider Katherine Adkins sold 41,664 shares of the firm's stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $75.53, for a total value 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. This trade represents a 21.46% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Siphelele Jiyane sold 26,980 shares of Affirm stock in a transaction on Monday, September 14th. The stock was 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 of the company's stock, valued at $13,623,047.09. This represents a 12.51% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 280,118 shares of company stock valued at $22,223,307. 11.01% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Affirm

A number of institutional investors have recently made changes to their positions in the stock. Spyglass Capital Management LLC lifted its holdings in shares of Affirm by 15.2% in the first quarter. Spyglass Capital Management LLC now owns 1,662,325 shares of the company's stock valued at $76,168,000 after purchasing an additional 218,745 shares in the last quarter. Bank of New York Mellon Corp acquired a new position in shares of Affirm during the second quarter worth about $75,121,000. Dimensional Fund Advisors LP grew its holdings in shares of Affirm by 11.8% during the first quarter. Dimensional Fund Advisors LP now owns 1,574,660 shares of the company's stock worth $72,100,000 after buying an additional 166,252 shares in the last quarter. Allspring Global Investments Holdings LLC grew its holdings in shares of Affirm by 23.8% during the first quarter. Allspring Global Investments Holdings LLC now owns 1,577,264 shares of the company's stock worth $71,829,000 after buying an additional 303,037 shares in the last quarter. Finally, Swiss National Bank grew its holdings in shares of Affirm by 8.8% during the first quarter. Swiss National Bank now owns 806,800 shares of the company's stock worth $36,968,000 after buying an additional 65,000 shares in the last quarter. 69.29% of the stock is owned by institutional investors and hedge funds.

Affirm Company Profile

Affirm Holdings, Inc NASDAQ: AFRM operates a financial technology platform that provides consumers with flexible payment options at the point of sale. Its services allow shoppers to split eligible purchases into scheduled installments, with terms and costs disclosed before a transaction is completed.

Affirm's platform is available through online and mobile checkout experiences, as well as through the Affirm app. Its product offerings include buy now, pay later financing, the Affirm Card, and savings products.

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