Affirm Holdings, Inc. (NASDAQ:AFRM) Stock Rated "Moderate Buy" by Wall Street Analysts

Key Points

• Wall Street analysts rate Affirm “Moderate Buy”: 24 of 32 analysts recommend buying the stock, while eight rate it a hold. The average 12-month price target is $97.69.
• Affirm’s latest quarterly results included adjusted EPS of $4.62, far above the $0.35 consensus estimate, while revenue rose 33.1% year over year to $1.07 billion but fell short of expectations.
• Company insiders sold 280,118 shares worth approximately $22.2 million over the past three months, primarily through pre-arranged Rule 10b5-1 trading plans; institutional investors own 69.29% of the stock.

Shares of Affirm Holdings, Inc. (NASDAQ:AFRM - Get Free Report) have been given an average recommendation of "Moderate Buy" by the thirty-two brokerages that are covering the stock, MarketBeat reports. Eight equities research analysts have rated the stock with a hold recommendation and twenty-four have issued a buy recommendation on the company. The average 12 month target price among analysts that have issued a report on the stock in the last year is $97.69.

AFRM has been the topic of a number of research reports. Weiss Ratings raised shares of Affirm from a "hold (c-)" rating to a "hold (c+)" rating in a research note on Friday, August 28th. Royal Bank Of Canada increased their target price on Affirm from $80.00 to $96.00 and gave the stock a "sector perform" rating in a report on Friday, August 28th. Cantor Fitzgerald increased their target price on Affirm from $88.00 to $97.00 and gave the stock an "overweight" rating in a report on Monday, August 31st. Compass Point set a $100.00 target price on Affirm in a research report on Friday, July 17th. Finally, Scotiabank assumed coverage on Affirm in a research note on Wednesday, September 2nd. They issued a "sector outperform" rating and a $95.00 target price on the stock.

Affirm Stock Performance

Shares of AFRM stock opened at $70.51 on Thursday. The stock has a market cap of $23.79 billion, a PE ratio of 12.77, a price-to-earnings-growth ratio of 3.13 and a beta of 3.82. The stock has a 50-day moving average of $73.69 and a 200-day moving average of $70.08. 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 has a one year low of $42.10 and a one year high of $90.44.

Affirm (NASDAQ:AFRM - Get Free Report) last issued its earnings results 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 45.29% and a return on equity of 47.91%. The business's quarterly revenue was up 33.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.20 earnings per share. As a group, sell-side analysts expect that Affirm will post 1.91 earnings per share for the current year.

Insider Buying and Selling at Affirm

In related news, insider Katherine Adkins sold 41,664 shares of the company's stock in a transaction dated 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 sale, the insider owned 152,439 shares in the company, valued at approximately $11,513,717.67. This represents a 21.46% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible 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 the company's stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $90.01, for a total value of $7,130,502.19. Following the sale, the chief operating officer owned 120,713 shares in the company, valued at $10,865,377.13. The trade was a 39.62% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 280,118 shares of company stock worth $22,223,307 in the last three months. 11.01% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Affirm

Several hedge funds and other institutional investors have recently made changes to their positions in AFRM. Mather Group LLC. increased its stake in shares of Affirm by 52.9% in the third quarter. Mather Group LLC. now owns 613 shares of the company's stock valued at $42,000 after buying an additional 212 shares during the period. Osbon Capital Management LLC bought a new stake in Affirm during the 4th quarter worth approximately $49,000. Fideuram Intesa Sanpaolo Private Banking S.P.A. bought a new stake in Affirm during the 1st quarter worth approximately $34,000. Ascentis Independent Advisors bought a new stake in shares of Affirm in the first quarter worth $41,000. Finally, CX Institutional increased its holdings in Affirm by 2,724.3% in the second quarter. CX Institutional now owns 1,045 shares of the company's stock valued at $85,000 after purchasing an additional 1,008 shares during the period. 69.29% of the stock is owned by institutional investors.

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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