Shares of Affirm Holdings, Inc. (NASDAQ:AFRM – Get Free Report) gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $13.81, but opened at $15.09. Affirm shares last traded at $17.18, with a volume of 12,317,799 shares.
The company reported ($0.69) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.87) by $0.18. The firm had revenue of $445.83 million for the quarter, compared to the consensus estimate of $406.18 million. Affirm had a negative return on equity of 37.86% and a negative net margin of 64.12%. The company’s revenue was up 22.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($0.65) EPS.
Wall Street Analysts Forecast Growth
AFRM has been the topic of a number of analyst reports. Bank of America boosted their target price on shares of Affirm from $13.00 to $20.00 in a report on Monday, June 12th. JPMorgan Chase & Co. upped their target price on shares of Affirm from $16.00 to $18.00 and gave the stock a “neutral” rating in a research report on Tuesday. Mizuho upped their target price on shares of Affirm from $17.00 to $20.00 in a research report on Tuesday, July 11th. Truist Financial upped their target price on shares of Affirm from $17.00 to $24.00 in a research report on Friday, June 23rd. Finally, Piper Sandler lowered shares of Affirm from a “neutral” rating to an “underweight” rating and set a $11.00 price target for the company. in a research report on Thursday, July 6th. Four research analysts have rated the stock with a sell rating, nine have assigned a hold rating and five have issued a buy rating to the stock. According to data from MarketBeat, Affirm has a consensus rating of “Hold” and a consensus price target of $16.95.
Insiders Place Their Bets
In other Affirm news, major shareholder Private Ltd Gic sold 203,905 shares of the business’s stock in a transaction dated Wednesday, July 5th. The shares were sold at an average price of $15.42, for a total value of $3,144,215.10. Following the completion of the sale, the insider now directly owns 11,887,747 shares of the company’s stock, valued at approximately $183,309,058.74. The transaction was disclosed in a filing with the SEC, which is available through this link. Corporate insiders own 12.11% of the company’s stock.
Institutional Trading of Affirm
Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Treasurer of the State of North Carolina grew its position in shares of Affirm by 2.4% in the first quarter. Treasurer of the State of North Carolina now owns 96,706 shares of the company’s stock valued at $1,090,000 after purchasing an additional 2,270 shares during the period. State Board of Administration of Florida Retirement System lifted its stake in shares of Affirm by 1.5% in the fourth quarter. State Board of Administration of Florida Retirement System now owns 163,269 shares of the company’s stock worth $1,579,000 after buying an additional 2,480 shares in the last quarter. Cravens & Co Advisors LLC purchased a new position in shares of Affirm in the fourth quarter worth about $187,000. Nisa Investment Advisors LLC raised its stake in Affirm by 28.5% during the first quarter. Nisa Investment Advisors LLC now owns 31,100 shares of the company’s stock worth $350,000 after purchasing an additional 6,900 shares during the period. Finally, Tredje AP fonden raised its stake in Affirm by 2.7% during the fourth quarter. Tredje AP fonden now owns 39,342 shares of the company’s stock worth $380,000 after purchasing an additional 1,034 shares during the period. Institutional investors and hedge funds own 60.65% of the company’s stock.
Affirm Stock Up 28.8 %
The company has a debt-to-equity ratio of 1.90, a current ratio of 10.91 and a quick ratio of 10.91. The business’s 50 day simple moving average is $15.97 and its 200 day simple moving average is $13.72. The company has a market capitalization of $5.26 billion, a PE ratio of -5.39 and a beta of 3.12.
About Affirm
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 from one to sixty months.
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