Affirm (NASDAQ:AFRM – Free Report) had its target price increased by Truist Financial from $83.00 to $85.00 in a research report released on Thursday morning,Benzinga reports. The brokerage currently has a buy rating on the stock.
Other research analysts also recently issued reports about the company. Wolfe Research restated an “outperform” rating on shares of Affirm in a research note on Friday, August 28th. Oppenheimer lifted their price target on shares of Affirm from $100.00 to $104.00 and gave the company an “outperform” rating in a report on Friday, August 28th. TD Cowen boosted their price target on shares of Affirm from $117.00 to $124.00 and gave the stock a “buy” rating in a research note on Friday, August 28th. Wells Fargo & Company raised their price objective on Affirm from $89.00 to $96.00 and gave the company an “overweight” rating in a research report on Wednesday, July 8th. Finally, Mizuho boosted their target price on Affirm from $95.00 to $100.00 and gave the stock an “outperform” rating in a research report on Thursday, May 14th. Twenty-three equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat, Affirm presently has a consensus rating of “Moderate Buy” and an average price target of $99.12.
Read Our Latest Analysis on AFRM
Affirm Trading Down 2.6%
Affirm (NASDAQ:AFRM – Get Free Report) last posted its quarterly earnings results on Thursday, August 27th. The company reported $4.62 EPS for the quarter, beating analysts’ consensus estimates of $0.35 by $4.27. Affirm had a return on equity of 47.91% and a net margin of 45.29%.The business had revenue of $1.07 billion for the quarter, compared to analysts’ expectations of $1.11 billion. During the same period last year, the firm earned $0.20 earnings per share. The business’s quarterly revenue was up 33.1% on a year-over-year basis. On average, sell-side analysts anticipate that Affirm will post 1.87 earnings per share for the current fiscal year.
Insider Activity
In related news, COO Michael Linford sold 100,000 shares of Affirm stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $80.04, for a total value of $8,004,000.00. Following the completion of the transaction, the chief operating officer owned 117,984 shares in the company, valued at approximately $9,443,439.36. This trade represents a 45.87% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Katherine Adkins sold 41,664 shares of the business’s stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $75.53, for a total value of $3,146,881.92. Following the sale, the insider directly owned 152,439 shares in the company, valued at $11,513,717.67. The trade was a 21.46% 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 quarter, insiders sold 262,547 shares of company stock valued at $21,220,779. 11.01% of the stock is currently owned by company insiders.
Institutional Trading of Affirm
Hedge funds and other institutional investors have recently bought and sold shares of the stock. California State Teachers Retirement System boosted its stake in Affirm by 7,715.3% during the second quarter. California State Teachers Retirement System now owns 29,932,275 shares of the company’s stock worth $2,440,977,000 after buying an additional 29,549,277 shares during the period. Norges Bank purchased a new stake in shares of Affirm in the fourth quarter valued at $281,961,000. Invesco Ltd. raised its stake in shares of Affirm by 294.2% in the third quarter. Invesco Ltd. now owns 4,333,691 shares of the company’s stock valued at $316,706,000 after acquiring an additional 3,234,260 shares during the period. Northwestern Mutual Wealth Management Co. lifted its holdings in shares of Affirm by 11,042.3% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,161,278 shares of the company’s stock worth $157,004,000 after acquiring an additional 2,141,881 shares during the last quarter. Finally, Atreides Management LP lifted its holdings in shares of Affirm by 543.3% in the 2nd quarter. Atreides Management LP now owns 1,977,882 shares of the company’s stock worth $136,751,000 after acquiring an additional 1,670,429 shares during the last quarter. Hedge funds and other institutional investors own 69.29% of the company’s stock.
Key Affirm News
Here are the key news stories impacting Affirm this week:
- Positive Sentiment: Analyst support remains strong: Mizuho Securities initiated or reiterated a Buy rating for Affirm, while Truist raised its price target from $83 to $85 and maintained a Buy rating. Scotiabank also began coverage with a Sector Outperform recommendation. These actions reinforce the bullish view that Affirm can continue expanding its payments and lending business. Affirm Receives a Buy from Mizuho Securities Scotiabank Initiates Coverage of Affirm
- Positive Sentiment: Demand may be benefiting from consumer pressure: Inflation and elevated gas costs are encouraging consumers to use installment-payment products, potentially supporting transaction volume and revenue growth. Affirm’s disciplined underwriting is viewed as a way to limit rising credit risk. Consumer Pressure Rises, but Demand for Affirm’s Services Also Rises
- Neutral Sentiment: Recent fundamentals provide support: Affirm’s latest quarterly revenue increased 33.1% year over year, and reported EPS substantially exceeded consensus estimates, although revenue was below expectations. Analysts overall maintain a Moderate Buy consensus, with an average price target of $99.12.
- Negative Sentiment: Insider selling is a near-term overhang: COO and director-level insider sales totaling roughly $10 million were reported, including Katherine Adkins’ sale of 41,664 shares. The transactions were conducted under a pre-arranged Rule 10b5-1 plan, which reduces their value as a signal of current management sentiment but may still pressure the stock.
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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