Northwestern Mutual Wealth Management Co. Has $157 Million Stake in Affirm Holdings, Inc. $AFRM

Key Points

• Northwestern Mutual Wealth Management dramatically increased its stake in Affirm during the fourth quarter, lifting its holdings by 11,042.3% to 2.16 million shares valued at about $157 million.
• Affirm reported better-than-expected earnings for the quarter, posting $0.30 EPS versus the $0.17 estimate, while revenue rose 32.7% year over year to $943.95 million.
• Sentiment around the stock remains broadly positive, with several analysts raising targets and maintaining buy ratings, though shares were down 2.6% in recent trading and one director sold 2,000 shares under a pre-arranged plan.

Northwestern Mutual Wealth Management Co. increased its position in shares of Affirm Holdings, Inc. (NASDAQ:AFRM - Free Report) by 11,042.3% during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 2,161,278 shares of the company's stock after buying an additional 2,141,881 shares during the period. Northwestern Mutual Wealth Management Co. owned 0.65% of Affirm worth $157,004,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors have also added to or reduced their stakes in the company. Assetmark Inc. increased its holdings in Affirm by 111.3% during the third quarter. Assetmark Inc. now owns 338 shares of the company's stock worth $25,000 after buying an additional 178 shares during the last quarter. Triumph Capital Management acquired a new position in Affirm during the third quarter worth $31,000. CoreCap Advisors LLC increased its holdings in Affirm by 431.3% during the fourth quarter. CoreCap Advisors LLC now owns 441 shares of the company's stock worth $33,000 after buying an additional 358 shares during the last quarter. Larson Financial Group LLC increased its holdings in shares of Affirm by 74.5% in the third quarter. Larson Financial Group LLC now owns 499 shares of the company's stock valued at $36,000 after purchasing an additional 213 shares during the last quarter. Finally, Bogart Wealth LLC increased its holdings in shares of Affirm by 2,381.0% in the fourth quarter. Bogart Wealth LLC now owns 521 shares of the company's stock valued at $39,000 after purchasing an additional 500 shares during the last quarter. 69.29% of the stock is currently owned by institutional investors and hedge funds.

Affirm Trading Down 2.6%

AFRM stock opened at $65.82 on Friday. The company has a debt-to-equity ratio of 2.39, a quick ratio of 11.41 and a current ratio of 11.32. The company's 50-day simple moving average is $54.70 and its 200 day simple moving average is $62.88. Affirm Holdings, Inc. has a 52 week low of $42.10 and a 52 week high of $100.00. The company has a market capitalization of $22.04 billion, a PE ratio of 59.84, a price-to-earnings-growth ratio of 4.17 and a beta of 3.72.

Affirm (NASDAQ:AFRM - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported $0.30 EPS for the quarter, beating the consensus estimate of $0.17 by $0.13. Affirm had a net margin of 9.63% and a return on equity of 11.17%. The business had revenue of $943.95 million for the quarter, compared to the consensus estimate of $995.27 million. During the same period in the prior year, the company posted $0.01 earnings per share. Affirm's revenue was up 32.7% compared to the same quarter last year. As a group, sell-side analysts anticipate that Affirm Holdings, Inc. will post 1.13 earnings per share for the current year.

Trending Headlines about Affirm

Here are the key news stories impacting Affirm this week:

• Positive Sentiment: Mizuho raised its price target on Affirm to $100 from $95 and kept an Outperform rating, citing the company’s $100 billion gross merchandise volume goal and strong long-term growth outlook. Mizuho Hikes Affirm Price Target to $100 as $100 Billion GMV Goal Powers Bull Case
• Positive Sentiment: Several recent analyst notes and media reports highlighted bullish views on Affirm, reinforcing expectations for continued execution and growth in the BNPL market. Analysts Are Bullish on These Financial Stocks: Affirm Holdings (AFRM), Figure Technology Solutions, Inc. Class A (FIGR)
• Positive Sentiment: Jim Cramer said Affirm is “doing the right thing with AI,” adding to the bullish narrative around its product strategy and AI-related commerce opportunities. Affirm (AFRM) Is Doing The Right Thing With AI, Says Jim Cramer
• Positive Sentiment: Coverage of Affirm’s partnership with Google and its push into AI-enabled shopping suggests a potential path to broader adoption and more payment volume over time. Can Affirm and Google Simplify Payments in AI Shopping?
• Neutral Sentiment: Affirm’s investor day laid out an aggressive expansion plan, including new products and international growth, but the market reaction was mixed. Affirm Unveils Aggressive Expansion Blueprint
• Negative Sentiment: Director Noel Bertram Watson sold 2,000 shares in a pre-arranged 10b5-1 transaction, which can slightly weigh on sentiment even though it does not necessarily signal a change in fundamentals. Insider trade disclosure for Noel Bertram Watson

Insider Activity at Affirm

In related news, Director Noel Bertram Watson sold 2,000 shares of the company's stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of $65.00, for a total value of $130,000.00. Following the transaction, the director directly owned 36,076 shares in the company, valued at approximately $2,344,940. This represents a 5.25% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 11.01% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts have commented on the stock. Compass Point reiterated a "buy" rating and issued a $68.00 price objective on shares of Affirm in a report on Wednesday, February 18th. Citizens Jmp decreased their price objective on shares of Affirm from $105.00 to $85.00 and set a "market outperform" rating on the stock in a report on Friday, April 17th. Bank of America upped their price objective on shares of Affirm from $82.00 to $88.00 and gave the company a "buy" rating in a report on Monday, May 11th. Truist Financial upped their price objective on shares of Affirm from $71.00 to $75.00 and gave the company a "buy" rating in a report on Friday, April 24th. Finally, Morgan Stanley set a $79.00 price objective on shares of Affirm and gave the company an "overweight" rating in a report on Sunday, May 10th. One research analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and nine have assigned a Hold rating to the company's stock. According to MarketBeat.com, Affirm has a consensus rating of "Moderate Buy" and a consensus price target of $86.00.

Affirm Profile

Affirm Holdings, Inc is a financial technology company that provides point-of-sale consumer lending and payments solutions for online and in-store purchases. Its core product is a buy-now-pay-later (BNPL) platform that enables consumers to split purchases into fixed, transparent installment loans with no hidden fees. Affirm offers a range of financing options through merchant integrations, a consumer-facing mobile app and virtual card capabilities, and tools for merchants to offer alternative payment methods at checkout.

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