Affirm (NASDAQ:AFRM) Issues Quarterly Earnings Results

Affirm (NASDAQ:AFRM) released its quarterly earnings results on Thursday. The company reported $4.62 EPS for the quarter, beating the consensus estimate of $0.35 by $4.27, FiscalAI reports. Affirm had a net margin of 9.63% and a return on equity of 11.17%. The business had revenue of $1.07 billion during the quarter, compared to analyst estimates of $1.11 billion.

Affirm Stock Up 1.3%

Shares of NASDAQ AFRM traded up $1.03 during midday trading on Thursday, hitting $77.49. 7,619,497 shares of the company’s stock were exchanged, compared to its average volume of 5,183,616. The company has a market cap of $25.95 billion, a PE ratio of 70.45, a P/E/G ratio of 3.16 and a beta of 3.71. Affirm has a twelve month low of $42.10 and a twelve month high of $100.00. The company has a debt-to-equity ratio of 2.39, a current ratio of 11.32 and a quick ratio of 11.32. The firm’s fifty day simple moving average is $77.30 and its 200-day simple moving average is $64.36.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the stock. Compass Point set a $100.00 price objective on shares of Affirm in a research note on Friday, July 17th. Zacks Research downgraded shares of Affirm from a “strong-buy” rating to a “hold” rating in a report on Tuesday. Stephens boosted their price target on Affirm from $55.00 to $75.00 and gave the stock an “equal weight” rating in a research report on Friday, May 8th. Cantor Fitzgerald boosted their target price on Affirm from $80.00 to $88.00 and gave the stock an “overweight” rating in a report on Wednesday, July 22nd. Finally, UBS Group raised their price objective on shares of Affirm from $78.00 to $82.00 and gave the stock a “neutral” rating in a research report on Monday, May 11th. One equities research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and nine have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $93.62.

Trending Headlines about Affirm

Here are the key news stories impacting Affirm this week:

• Positive Sentiment: Shopify expansion supports growth prospects: Affirm and Shopify launched Shop Pay Installments in Australia, giving Australian consumers access to Affirm-powered installment payments through Shopify’s checkout. The partnership could expand Affirm’s merchant reach, transaction volume and international growth opportunity. Affirm and Shopify launch Shop Pay Installments in Australia
• Positive Sentiment: Some analysts remain constructive: Affirm has a consensus analyst recommendation of “Moderate Buy,” while Morgan Stanley raised its price target from $79 to $80 and maintained an Equal Weight rating. The increase suggests limited but positive upside from recent trading levels. Affirm receives Moderate Buy consensus
• Neutral Sentiment: Earnings are the main near-term catalyst: Recent coverage highlights Affirm’s upcoming results and its 76% earnings-per-share beat in the prior quarter. Investors are looking for evidence that the company can sustain strong growth and profitability, but the supplied reports do not include the latest results. Affirm prior EPS beat
• Neutral Sentiment: Analyst views remain divided: RBC Capital Markets assigned a Hold rating, and other coverage describes analysts as conflicted. The stock has recently traded in a narrow range, leaving earnings guidance and management commentary likely to determine its next major move. RBC Capital Hold rating
• Negative Sentiment: Zacks downgrade adds pressure: Zacks Research cut Affirm from “Strong Buy” to “Hold,” potentially limiting enthusiasm ahead of earnings and reinforcing concerns that the current valuation already reflects substantial growth expectations. Zacks downgrades Affirm

Insider Buying and Selling

In related news, COO Michael Linford sold 100,000 shares of the business’s 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 directly owned 117,984 shares of the company’s stock, valued at $9,443,439.36. The trade was a 45.87% decrease in their ownership of the stock. The sale 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. 11.01% of the stock is owned by corporate insiders.

Institutional Trading of Affirm

Large investors have recently bought and sold shares of the business. Transamerica Financial Advisors LLC increased its stake in Affirm by 5,848.1% in the 4th quarter. Transamerica Financial Advisors LLC now owns 1,606 shares of the company’s stock valued at $120,000 after buying an additional 1,579 shares during the period. UMB Bank n.a. grew its holdings in shares of Affirm by 36.6% in the 4th quarter. UMB Bank n.a. now owns 783 shares of the company’s stock worth $58,000 after acquiring an additional 210 shares during the period. Smartleaf Asset Management LLC raised its stake in shares of Affirm by 51.0% during the 4th quarter. Smartleaf Asset Management LLC now owns 2,416 shares of the company’s stock worth $183,000 after buying an additional 816 shares during the last quarter. Advisory Services Network LLC purchased a new stake in shares of Affirm in the third quarter valued at about $194,000. Finally, Livforsakringsbolaget Skandia Omsesidigt acquired a new stake in Affirm during the 3rd quarter valued at $131,000. Institutional investors and hedge funds own 69.29% of the company’s stock.

Affirm Company 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.