JPMorgan Chase & Co. Forecasts Strong Price Appreciation for Affirm (NASDAQ:AFRM) Stock

Key Points

• JPMorgan Chase & Co. raised its price target on Affirm from $80 to $90 while keeping an overweight rating, implying about 12.55% upside from the prior close.
• Other analysts remain generally positive on the stock, with a consensus Moderate Buy and an average price target of $89.46.
• Affirm shares fell 4.4% to $79.96 on Wednesday, even after the company recently reported stronger-than-expected quarterly EPS of $0.30 and 32.7% revenue growth year over year.

Affirm (NASDAQ:AFRM - Get Free Report) had its price target increased by analysts at JPMorgan Chase & Co. from $80.00 to $90.00 in a report released on Wednesday,Benzinga reports. The brokerage presently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s target price would indicate a potential upside of 12.55% from the stock's previous close.

Several other research analysts also recently weighed in on the company. Weiss Ratings reiterated a "hold (c-)" rating on shares of Affirm in a report on Wednesday, June 24th. Morgan Stanley set a $79.00 target price on Affirm and gave the company an "overweight" rating in a research note on Sunday, May 10th. Piper Sandler began coverage on Affirm in a research note on Monday, June 29th. They issued an "overweight" rating and a $103.00 price target on the stock. Stephens upped their price objective on shares of Affirm from $55.00 to $75.00 and gave the company an "equal weight" rating in a research note on Friday, May 8th. Finally, Robert W. Baird set a $70.00 price objective on shares of Affirm in a report on Friday, May 8th. One equities research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and nine have given a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $89.46.

Affirm Trading Down 4.4%

NASDAQ:AFRM traded down $3.66 on Wednesday, reaching $79.96. The stock had a trading volume of 1,040,998 shares, compared to its average volume of 5,697,045. Affirm has a 12-month low of $42.10 and a 12-month high of $100.00. The company has a market cap of $26.78 billion, a price-to-earnings ratio of 72.79, a P/E/G ratio of 3.53 and a beta of 3.67. The firm's fifty day moving average is $70.54 and its two-hundred day moving average is $63.44. The company has a debt-to-equity ratio of 2.39, a current ratio of 11.32 and a quick ratio of 11.32.

Affirm (NASDAQ:AFRM - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The company reported $0.30 EPS for the quarter, topping analysts' consensus estimates of $0.17 by $0.13. The business had revenue of $943.95 million during the quarter, compared to the consensus estimate of $995.27 million. Affirm had a net margin of 9.63% and a return on equity of 11.17%. The company's quarterly revenue was up 32.7% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.01 earnings per share. Equities analysts expect that Affirm will post 1.24 EPS for the current fiscal year.

Insider Transactions at Affirm

In other news, COO Michael Linford sold 100,000 shares of the stock in a transaction on Friday, June 26th. The shares were sold at an average price of $80.04, for a total value of $8,004,000.00. Following the completion of the sale, the chief operating officer owned 117,984 shares of the company's stock, valued at $9,443,439.36. This represents a 45.87% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Noel Bertram Watson sold 2,000 shares of the firm's stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $65.00, for a total transaction of $130,000.00. Following the completion of 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 position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 104,000 shares of company stock valued at $8,244,000 in the last quarter. Company insiders own 11.01% of the company's stock.

Institutional Trading of Affirm

Several large investors have recently added to or reduced their stakes in AFRM. Mount Vernon Associates Inc. MD boosted its position in shares of Affirm by 0.5% in the fourth quarter. Mount Vernon Associates Inc. MD now owns 42,925 shares of the company's stock worth $3,195,000 after buying an additional 200 shares during the period. Fifth Third Bancorp grew its stake in shares of Affirm by 63.6% in the fourth quarter. Fifth Third Bancorp now owns 522 shares of the company's stock valued at $39,000 after buying an additional 203 shares in the last quarter. Rakuten Securities Inc. raised its holdings in shares of Affirm by 1.3% during the 4th quarter. Rakuten Securities Inc. now owns 16,622 shares of the company's stock valued at $1,237,000 after buying an additional 206 shares during the period. UMB Bank n.a. raised its holdings in shares of Affirm by 36.6% during the 4th quarter. UMB Bank n.a. now owns 783 shares of the company's stock valued at $58,000 after buying an additional 210 shares during the period. Finally, Larson Financial Group LLC lifted its position in Affirm by 74.5% during the 3rd quarter. Larson Financial Group LLC now owns 499 shares of the company's stock worth $36,000 after acquiring an additional 213 shares in the last quarter. 69.29% of the stock is currently owned by institutional investors and hedge funds.

About Affirm

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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