Affirm’s (AFRM) “Overweight” Rating Reiterated at Cantor Fitzgerald

Cantor Fitzgerald reaffirmed their overweight rating on shares of Affirm (NASDAQ:AFRM) in a report issued on Friday, MarketBeat Ratings reports. Cantor Fitzgerald currently has a $88.00 price target on the stock.

AFRM has been the subject of several other reports. BMO Capital Markets lifted their price objective on shares of Affirm from $78.00 to $86.00 and gave the stock an “outperform” rating in a research note on Wednesday, August 12th. Royal Bank Of Canada increased their target price on shares of Affirm from $77.00 to $80.00 and gave the company a “sector perform” rating in a research note on Friday, May 8th. JPMorgan Chase & Co. raised their target price on shares of Affirm from $80.00 to $90.00 and gave the stock an “overweight” rating in a report on Wednesday, July 8th. Compass Point set a $100.00 price target on shares of Affirm in a research note on Friday, July 17th. Finally, Stephens upped their price target on shares of Affirm from $55.00 to $75.00 and gave the company an “equal weight” rating in a report on Friday, May 8th. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and eight have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $98.08.

Affirm Stock Performance

Shares of AFRM stock opened at $77.76 on Friday. The company has a market cap of $26.04 billion, a PE ratio of 14.09, a price-to-earnings-growth ratio of 3.13 and a beta of 3.71. Affirm has a 1 year low of $42.10 and a 1 year high of $100.00. The stock’s 50 day simple moving average is $77.45 and its two-hundred day simple moving average is $64.64. The company has a debt-to-equity ratio of 1.82, a current ratio of 11.80 and a quick ratio of 11.80.

Affirm (NASDAQ:AFRM) last announced its earnings results on Thursday, August 27th. The company reported $4.62 EPS for the quarter, topping analysts’ consensus estimates of $0.35 by $4.27. The firm had revenue of $1.07 billion during the quarter, compared to analysts’ expectations of $1.11 billion. Affirm had a return on equity of 47.91% and a net margin of 45.29%.The company’s quarterly revenue was up 33.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.20 EPS. Research analysts predict that Affirm will post 1.75 earnings per share for the current year.

Insider Activity

In other news, COO Michael Linford sold 100,000 shares of the company’s stock in a transaction dated 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 transaction, the chief operating officer directly owned 117,984 shares in the company, valued at approximately $9,443,439.36. This represents a 45.87% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 11.01% of the company’s stock.

Institutional Investors Weigh In On Affirm

A number of institutional investors and hedge funds have recently added to or reduced their stakes in AFRM. Greenline Wealth Management LLC purchased a new position in shares of Affirm during the fourth quarter worth approximately $26,000. Triumph Capital Management purchased a new stake in shares of Affirm in the third quarter valued at approximately $31,000. Strive Financial Group LLC purchased a new stake in shares of Affirm in the fourth quarter valued at approximately $33,000. Larson Financial Group LLC grew its stake in Affirm by 74.5% in the third quarter. Larson Financial Group LLC now owns 499 shares of the company’s stock worth $36,000 after purchasing an additional 213 shares in the last quarter. Finally, Bogart Wealth LLC grew its stake in Affirm by 2,381.0% in the fourth quarter. Bogart Wealth LLC now owns 521 shares of the company’s stock worth $39,000 after purchasing an additional 500 shares in the last quarter. Institutional investors own 69.29% of the company’s stock.

Key Stories Impacting Affirm

Here are the key news stories impacting Affirm this week:

• Positive Sentiment: Affirm reported record quarterly profitability, with adjusted EPS of $4.62 versus estimates ranging from approximately $0.35 to $3.77. Revenue increased 33% year over year, while gross merchandise volume rose 36% and adjusted operating income climbed 49%. Affirm Q4 Earnings and Revenues Beat Estimates
• Positive Sentiment: Management’s fiscal 2027 outlook was reportedly above consensus, supported by continued card adoption, merchant expansion and growing use of installment payments for smaller, everyday purchases. Credit performance remained stable, helping reduce concerns about consumer losses. Affirm Q4 Earnings Call Highlights Growth and Product Expansion
• Positive Sentiment: Lower funding costs were another profit tailwind: financing costs fell 103 basis points to 5.8%, allowing margin expansion while the company maintained tight underwriting standards. Affirm Operational Results and Funding Costs
• Positive Sentiment: Several analysts raised their targets following the results. JPMorgan lifted its target to $105 and maintained an overweight rating, BMO raised its target to $101 with an outperform rating, and RBC increased its target to $96. Analyst Price Target Changes
• Positive Sentiment: Affirm expanded its Shopify partnership into Australia through Shop Pay Installments, opening a new international growth channel and increasing the potential reach of its payment products. Affirm and Shopify Launch Shop Pay Installments in Australia
• Neutral Sentiment: Unusually heavy call-option activity and a broader rebound in buy-now-pay-later stocks may be amplifying the move, but these signals do not necessarily reflect long-term fundamental demand.
• Negative Sentiment: The $4.62 EPS headline should be interpreted cautiously because it benefited from a one-time tax allowance release. Reported revenue of roughly $1.07 billion was also below some analyst estimates near $1.11 billion, while the stock’s elevated valuation leaves limited room for execution disappointments. Affirm Earnings Quality Analysis

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.