Affirm (NASDAQ:AFRM) Issues Earnings Results

Key Points

• Affirm reported quarterly EPS of $0.47, beating the $0.38 analyst consensus by $0.09; revenue was $1.15 billion, below expectations of $1.21 billion.
• Shares fell $5.93 to $69.66 in Thursday’s mid-day trading.
• Analysts’ consensus rating was Moderate Buy, with an average price target of $97.41; insiders sold 280,118 shares worth about $22.2 million over the prior 90 days.

Affirm (NASDAQ:AFRM - Get Free Report) announced its earnings results on Thursday. The company reported $0.47 EPS for the quarter, beating analysts' consensus estimates of $0.38 by $0.09, FiscalAI reports. Affirm had a net margin of 45.29% and a return on equity of 47.91%. The business had revenue of $1.15 billion during the quarter, compared to analysts' expectations of $1.21 billion.

Affirm Price Performance

Shares of AFRM stock traded down $5.93 during mid-day trading on Thursday, hitting $69.66. The company had a trading volume of 7,021,949 shares, compared to its average volume of 5,090,124. 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 stock's 50 day moving average price is $72.87 and its 200-day moving average price is $66.60. Affirm has a 52-week low of $42.10 and a 52-week high of $90.44. The company has a market capitalization of $23.50 billion, a P/E ratio of 12.62, a P/E/G ratio of 2.92 and a beta of 3.74.

Insider Activity at Affirm

In other news, CAO Siphelele Jiyane sold 26,980 shares of the firm's stock in a transaction dated 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 completion of the transaction, the chief accounting officer 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 sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, COO Michael Linford sold 79,219 shares of Affirm 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 completion of the sale, the chief operating officer directly owned 120,713 shares in the company, valued at $10,865,377.13. This trade represents a 39.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 280,118 shares of company stock valued at $22,223,307. 11.01% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on the company. Scotiabank began coverage on Affirm in a research note on Wednesday, September 2nd. They issued a "sector outperform" rating and a $95.00 price objective for the company. Robert W. Baird raised their price objective on Affirm from $70.00 to $82.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 14th. Dbs Bank raised Affirm to a "moderate buy" rating in a research report on Wednesday, September 30th. Wells Fargo & Company upped their price target on shares of Affirm from $89.00 to $96.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 8th. Finally, UBS Group increased their price objective 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. One analyst has rated the stock with a Strong Buy rating, twenty-five have assigned a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $97.41.

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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