Affirm (NASDAQ:AFRM) Trading Up 10.5% – Here’s Why

Affirm Holdings, Inc. (NASDAQ:AFRM) shot up 10.5% on Tuesday . The stock traded as high as $70.12 and last traded at $72.5670. 2,837,895 shares were traded during trading, a decline of 60% from the average session volume of 7,038,563 shares. The stock had previously closed at $65.66.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on AFRM shares. Wall Street Zen upgraded Affirm from a “hold” rating to a “buy” rating in a research report on Saturday. Morgan Stanley reduced their price objective on Affirm from $90.00 to $83.00 and set an “equal weight” rating on the stock in a research report on Friday, November 7th. Bank of America upped their target price on Affirm from $94.00 to $98.00 and gave the stock a “buy” rating in a report on Friday, November 7th. Evercore ISI reaffirmed an “outperform” rating on shares of Affirm in a research note on Tuesday, September 16th. Finally, Wolfe Research initiated coverage on Affirm in a research note on Tuesday, December 9th. They issued a “peer perform” rating on the stock. Three analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and eleven have assigned a Hold rating to the company. Based on data from MarketBeat, Affirm has a consensus rating of “Moderate Buy” and a consensus target price of $86.57.

Affirm Stock Up 9.2%

The firm has a market cap of $23.67 billion, a price-to-earnings ratio of 107.40, a PEG ratio of 3.03 and a beta of 3.57. The firm has a 50 day moving average of $70.85 and a 200 day moving average of $71.91. The company has a quick ratio of 12.80, a current ratio of 12.80 and a debt-to-equity ratio of 2.40.

Affirm (NASDAQ:AFRM) last posted its quarterly earnings results on Thursday, November 6th. The company reported $0.23 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.11 by $0.12. The firm had revenue of $933.34 million for the quarter, compared to analysts’ expectations of $881.83 million. Affirm had a return on equity of 7.75% and a net margin of 6.74%.The company’s revenue for the quarter was up 33.6% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.31) EPS. As a group, sell-side analysts predict that Affirm Holdings, Inc. will post -0.18 earnings per share for the current year.

Insider Transactions at Affirm

In related news, CEO Max R. Levchin sold 651,713 shares of the company’s stock in a transaction that occurred on Monday, September 22nd. The stock was sold at an average price of $89.27, for a total transaction of $58,178,419.51. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Robert O’hare sold 8,189 shares of the firm’s stock in a transaction that occurred on Wednesday, December 3rd. The shares were sold at an average price of $70.00, for a total value of $573,230.00. Following the completion of the sale, the chief financial officer directly owned 1,368 shares of the company’s stock, valued at $95,760. This trade represents a 85.69% decrease in their position. The disclosure for this sale is available in the SEC filing. 11.01% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of AFRM. Assetmark Inc. grew 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 in the last quarter. Huntington National Bank lifted its stake in Affirm by 634.0% during the 2nd quarter. Huntington National Bank now owns 389 shares of the company’s stock valued at $27,000 after acquiring an additional 336 shares in the last quarter. Mather Group LLC. purchased a new position in Affirm during the 3rd quarter worth $29,000. SouthState Corp grew its stake in shares of Affirm by 190.5% in the 2nd quarter. SouthState Corp now owns 427 shares of the company’s stock worth $30,000 after acquiring an additional 280 shares in the last quarter. Finally, Blume Capital Management Inc. raised its holdings in shares of Affirm by 468.8% in the second quarter. Blume Capital Management Inc. now owns 455 shares of the company’s stock valued at $31,000 after purchasing an additional 375 shares during the last quarter. Institutional investors own 69.29% of the company’s stock.

Affirm Company Profile

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.