Royal Bank Of Canada Issues Pessimistic Forecast for Affirm (NASDAQ:AFRM) Stock Price

Affirm (NASDAQ:AFRM) had its target price cut by Royal Bank Of Canada from $87.00 to $77.00 in a report released on Friday,MarketScreener reports. The brokerage presently has a “sector perform” rating on the stock. Royal Bank Of Canada’s price objective points to a potential upside of 29.59% from the stock’s current price.

A number of other brokerages have also recently commented on AFRM. BTIG Research reissued a “neutral” rating on shares of Affirm in a report on Wednesday, December 17th. Cantor Fitzgerald raised Affirm to a “strong-buy” rating in a research note on Tuesday, January 27th. Bank of America lifted their target price on shares of Affirm from $94.00 to $98.00 and gave the stock a “buy” rating in a research note on Friday, November 7th. Weiss Ratings reissued a “hold (c-)” rating on shares of Affirm in a research note on Monday, December 29th. Finally, Truist Financial dropped their price objective on shares of Affirm from $90.00 to $85.00 and set a “buy” rating for the company in a research note on Wednesday, November 19th. Three equities research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and eight have given a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $88.40.

Affirm Stock Performance

NASDAQ:AFRM opened at $59.42 on Friday. The company has a debt-to-equity ratio of 2.40, a quick ratio of 12.80 and a current ratio of 12.80. The company has a fifty day moving average of $71.81 and a two-hundred day moving average of $74.24. The stock has a market capitalization of $19.61 billion, a PE ratio of 88.69, a P/E/G ratio of 2.76 and a beta of 3.56. Affirm has a fifty-two week low of $30.90 and a fifty-two week high of $100.00.

Affirm (NASDAQ:AFRM) last announced its earnings results on Thursday, February 5th. The company reported $0.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.28 by $0.09. The business had revenue of $1.12 billion for the quarter, compared to analyst estimates of $1.06 billion. Affirm had a net margin of 6.74% and a return on equity of 7.75%. The company’s revenue for the quarter was up 29.6% compared to the same quarter last year. During the same quarter last year, the business earned $0.23 earnings per share. As a group, research analysts forecast that Affirm will post -0.18 earnings per share for the current fiscal year.

Insider Transactions at Affirm

In related news, CEO Max R. Levchin sold 666,666 shares of Affirm stock in a transaction that occurred on Monday, January 5th. The shares were sold at an average price of $80.62, for a total value of $53,746,612.92. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Robert O’hare sold 36,401 shares of the company’s stock in a transaction on Monday, January 5th. The stock was sold at an average price of $80.00, for a total value of $2,912,080.00. Following the transaction, the chief financial officer owned 1,368 shares in the company, valued at $109,440. This trade represents a 96.38% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 711,256 shares of company stock valued at $57,231,923. Company insiders own 11.01% of the company’s stock.

Institutional Investors Weigh In On Affirm

A number of institutional investors have recently modified their holdings of AFRM. Invesco Ltd. increased its stake in Affirm by 294.2% during the third quarter. Invesco Ltd. now owns 4,333,691 shares of the company’s stock worth $316,706,000 after purchasing an additional 3,234,260 shares during the period. Norges Bank acquired a new position in shares of Affirm in the second quarter valued at approximately $183,475,000. Northwestern Mutual Wealth Management Co. increased its stake in Affirm by 11,042.3% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,161,278 shares of the company’s stock worth $157,004,000 after buying an additional 2,141,881 shares during the period. Atreides Management LP lifted its holdings in Affirm by 543.3% during the 2nd quarter. Atreides Management LP now owns 1,977,882 shares of the company’s stock worth $136,751,000 after buying an additional 1,670,429 shares in the last quarter. Finally, State Street Corp boosted its position in Affirm by 26.7% in the 3rd quarter. State Street Corp now owns 5,641,965 shares of the company’s stock valued at $412,315,000 after buying an additional 1,187,665 shares during the period. 69.29% of the stock is owned by institutional investors and hedge funds.

Affirm News Summary

Here are the key news stories impacting Affirm this week:

• Positive Sentiment: Earnings beat and top-line growth: Q2 EPS of $0.37 beat consensus ($0.28) and revenue of $1.12B topped estimates while rising ~30% year-over-year—evidence demand and pricing/merchant traction remain solid. Affirm Q2 press materials
• Positive Sentiment: GMV acceleration: Gross merchandise volume rose ~36% y/y to $13.8B, highlighting increased adoption of BNPL and Affirm’s expansion into more routine purchases. This is a growth signal for future revenue and merchant relationships. Affirm BNPL volumes jump
• Positive Sentiment: New merchant partnerships: Affirm announced a UK partnership with Virgin Media O2 to offer device financing, expanding international distribution and hardware financing opportunities. Such partnerships can drive incremental GMV and revenue. Affirm and Virgin Media O2 partner
• Neutral Sentiment: Guidance and outlook mixed: Management issued Q3 revenue guidance roughly $970M–$1.0B and reiterated FY revenue near $4.1B; the guidance was largely in line with expectations but offered limited upside, producing a mixed investor reaction. Earnings and guidance summary
• Neutral Sentiment: Analyst activity: Morgan Stanley upgraded Affirm to Overweight, reflecting bullish views on secular BNPL adoption, but the upgrade coexists with mixed market sentiment on valuation. Morgan Stanley upgrade
• Negative Sentiment: Widening credit losses: Reported credit losses increased, a key negative that prompted investor concern because higher charge-offs can pressure margins and profitability as BNPL moves into more routine, smaller-ticket lending. Media noted the stock sold off on this point. Credit losses widen
• Negative Sentiment: Valuation & momentum concerns: Some coverage points to stretched valuation and mixed momentum despite the beat—investors are weighing growth vs. a high P/E and execution risks, which can cap upside until credit trends stabilize. Valuation and momentum 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.