Affirm (NASDAQ:AFRM) Announces Earnings Results, Beats Expectations By $0.09 EPS

Affirm (NASDAQ:AFRM) posted its earnings results on Thursday. The company reported $0.47 earnings per share for the quarter, topping analysts’ consensus estimates of $0.38 by $0.09, FiscalAI reports. Affirm had a net margin of 45.29% and a return on equity of 47.91%. The firm had revenue of $1.15 billion for the quarter, compared to the consensus estimate of $1.21 billion.

Affirm Trading Down 7.8%

NASDAQ:AFRM traded down $5.93 during midday trading on Thursday, hitting $69.66. The stock had a trading volume of 7,021,949 shares, compared to its average volume of 5,090,124. The stock has a 50-day moving average of $72.87 and a 200 day moving average of $66.60. The company has a market capitalization of $23.50 billion, a price-to-earnings ratio of 12.62, a PEG ratio of 2.92 and a beta of 3.74. Affirm has a one year low of $42.10 and a one year high of $90.44. The company has a quick ratio of 11.80, a current ratio of 11.80 and a debt-to-equity ratio of 1.82.

Analysts Set New Price Targets

AFRM has been the subject of several analyst reports. Truist Financial raised their target price on shares of Affirm from $85.00 to $88.00 and gave the stock a “buy” rating in a report on Friday, October 23rd. Barclays upped their price objective on Affirm from $97.00 to $105.00 and gave the company an “overweight” rating in a research report on Friday, August 28th. Bank of America increased their target price on Affirm from $93.00 to $104.00 and gave the stock a “buy” rating in a research note on Friday, August 28th. The Goldman Sachs Group decreased their target price on Affirm from $115.00 to $103.00 and set a “buy” rating for the company in a research report on Tuesday, October 13th. Finally, Dbs Bank upgraded shares of Affirm to a “moderate buy” rating in a report on Wednesday, September 30th. One investment analyst has rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating and seven have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $97.41.

Insider Transactions at Affirm

In other news, insider Katherine Adkins sold 41,664 shares of the business’s stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $75.53, for a total value of $3,146,881.92. Following the completion of the sale, the insider owned 152,439 shares in the company, valued at approximately $11,513,717.67. The trade was a 21.46% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Robert O’Hare sold 65,591 shares of the stock in a transaction that occurred on Friday, October 9th. The shares were sold at an average price of $80.02, for a total transaction of $5,248,591.82. Following the transaction, the chief financial officer owned 2,734 shares in the company, valued at approximately $218,774.68. This represents a 96.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 280,118 shares of company stock valued at $22,223,307 over the last 90 days. 11.01% of the stock is owned by corporate insiders.

Affirm Company Profile

Affirm Holdings, Inc (NASDAQ: AFRM) operates a financial technology platform that provides consumers with flexible payment options at the point of sale. Its services allow shoppers to split eligible purchases into scheduled installments, with terms and costs disclosed before a transaction is completed.

Affirm’s platform is available through online and mobile checkout experiences, as well as through the Affirm app. Its product offerings include buy now, pay later financing, the Affirm Card, and savings products.