The Goldman Sachs Group Has Lowered Expectations for Affirm (NASDAQ:AFRM) Stock Price

Key Points

• The Goldman Sachs Group has reduced its price target for Affirm (NASDAQ:AFRM) from $105.00 to $94.00, maintaining a "buy" rating which indicates a potential upside of 27.73% from current levels.
• Affirm's quarterly earnings exceeded analyst expectations, with a reported $0.20 EPS against a consensus of $0.11, demonstrating a revenue increase of 32.9% year-over-year.
• Institutional investors hold a significant stake, with 69.29% of the stock owned by institutions and hedge funds, indicating strong interest from large financial entities.

Affirm (NASDAQ:AFRM - Get Free Report) had its price objective reduced by equities research analysts at The Goldman Sachs Group from $105.00 to $94.00 in a note issued to investors on Monday,Benzinga reports. The firm currently has a "buy" rating on the stock. The Goldman Sachs Group's price target points to a potential upside of 27.73% from the company's current price.

Other equities analysts also recently issued research reports about the company. Morgan Stanley set a $90.00 target price on Affirm in a research report on Friday, August 29th. JPMorgan Chase & Co. lifted their price objective on Affirm from $91.00 to $94.00 and gave the stock an "overweight" rating in a research report on Friday, August 29th. Susquehanna lifted their price objective on Affirm from $65.00 to $76.00 and gave the stock a "positive" rating in a research report on Wednesday, July 23rd. Needham & Company LLC reiterated a "hold" rating on shares of Affirm in a research report on Wednesday, July 2nd. Finally, Jefferies Financial Group raised their target price on Affirm from $82.00 to $95.00 and gave the stock a "buy" rating in a research note on Tuesday, August 26th. Two research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and eleven have issued a Hold rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $84.22.

Affirm Stock Performance

Affirm stock traded up $2.45 during midday trading on Monday, hitting $73.59. 3,042,804 shares of the company were exchanged, compared to its average volume of 7,418,693. The firm has a market capitalization of $23.97 billion, a PE ratio of 565.67, a price-to-earnings-growth ratio of 4.71 and a beta of 3.58. Affirm has a fifty-two week low of $30.90 and a fifty-two week high of $100.00. The business has a fifty day simple moving average of $80.23 and a two-hundred day simple moving average of $64.13. The company has a debt-to-equity ratio of 2.55, a quick ratio of 11.54 and a current ratio of 11.54.

Affirm (NASDAQ:AFRM - Get Free Report) last issued its quarterly earnings results on Thursday, August 28th. The company reported $0.20 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.11 by $0.09. The company had revenue of $876.42 million for the quarter, compared to the consensus estimate of $834.94 million. Affirm had a return on equity of 1.80% and a net margin of 1.62%.Affirm's revenue for the quarter was up 32.9% on a year-over-year basis. During the same quarter in the prior year, the business posted ($0.14) earnings per share. Affirm has set its FY 2026 guidance at EPS. Q1 2026 guidance at EPS. On average, sell-side analysts forecast that Affirm will post -0.18 earnings per share for the current year.

Insider Activity at Affirm

In other news, CAO Siphelele Jiyane sold 12,500 shares of Affirm stock in a transaction on Monday, September 15th. The stock was sold at an average price of $85.42, for a total value of $1,067,750.00. Following the completion of the sale, the chief accounting officer directly owned 213,967 shares of the company's stock, valued at approximately $18,277,061.14. The trade was a 5.52% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CFO Robert O'hare sold 31,423 shares of Affirm stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $83.30, for a total value of $2,617,535.90. The disclosure for this sale can be found here. Insiders have sold 1,844,552 shares of company stock valued at $154,885,240 over the last 90 days. Corporate insiders own 11.82% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of AFRM. Wealth Enhancement Advisory Services LLC acquired a new position in Affirm during the 4th quarter worth $228,000. GAMMA Investing LLC lifted its holdings in Affirm by 10.0% during the 1st quarter. GAMMA Investing LLC now owns 4,596 shares of the company's stock worth $208,000 after buying an additional 419 shares during the last quarter. Mission Wealth Management LP lifted its holdings in Affirm by 4.1% during the 1st quarter. Mission Wealth Management LP now owns 20,303 shares of the company's stock worth $917,000 after buying an additional 803 shares during the last quarter. Sowell Financial Services LLC purchased a new stake in Affirm during the 1st quarter worth about $225,000. Finally, Precision Wealth Strategies LLC purchased a new stake in Affirm during the 1st quarter worth about $406,000. 69.29% of the stock is owned by institutional investors and hedge funds.

About Affirm

Affirm Holdings, Inc operates a platform for digital and mobile-first commerce in the United States, Canada, and internationally. The company's platform includes point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app. Its commerce platform, agreements with originating banks, and capital markets partners enables consumers to pay for a purchase over time with terms ranging up to 60 months.

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