Affirm (NASDAQ:AFRM) Trading 10.5% Higher – Still a Buy?

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

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the company. Truist Financial reduced their target price on Affirm from $90.00 to $85.00 and set a “buy” rating for the company in a report on Wednesday, November 19th. JMP Securities lifted their target price on Affirm from $75.00 to $105.00 and gave the stock a “market outperform” rating in a research note on Friday, August 29th. Redburn Partners set a $101.00 price objective on shares of Affirm in a report on Monday, October 6th. Royal Bank Of Canada dropped their target price on shares of Affirm from $97.00 to $87.00 and set a “sector perform” rating on the stock in a research note on Friday, November 7th. Finally, Bank of America lifted their price target on shares of Affirm from $94.00 to $98.00 and gave the stock a “buy” rating in a report on Friday, November 7th. Three investment analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and eleven have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $86.57.

Affirm Trading Up 9.2%

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

Affirm (NASDAQ:AFRM) last released its quarterly earnings data on Thursday, November 6th. The company reported $0.23 EPS for the quarter, topping the consensus estimate of $0.11 by $0.12. Affirm had a net margin of 6.74% and a return on equity of 7.75%. The company had revenue of $933.34 million during the quarter, compared to the consensus estimate of $881.83 million. During the same period last year, the firm earned ($0.31) EPS. Affirm’s revenue for the quarter was up 33.6% on a year-over-year basis. As a group, equities research analysts expect that Affirm Holdings, Inc. will post -0.18 earnings per share for the current fiscal year.

Insider Activity

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

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Assetmark Inc. raised its position in shares of Affirm by 111.3% in 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 increased its stake in Affirm by 634.0% in the 2nd quarter. Huntington National Bank now owns 389 shares of the company’s stock worth $27,000 after acquiring an additional 336 shares during the last quarter. Mather Group LLC. purchased a new stake in shares of Affirm in the 3rd quarter valued at about $29,000. SouthState Corp raised its holdings in shares of Affirm by 190.5% in the 2nd quarter. SouthState Corp now owns 427 shares of the company’s stock valued at $30,000 after acquiring an additional 280 shares in the last quarter. Finally, Blume Capital Management Inc. boosted its position in shares of Affirm by 468.8% during the 2nd quarter. Blume Capital Management Inc. now owns 455 shares of the company’s stock valued at $31,000 after acquiring an additional 375 shares during the last quarter. Institutional investors own 69.29% of the company’s stock.

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 up to 60 months.