Affirm (NASDAQ:AFRM) Trading 11.2% Higher on Earnings Beat

Affirm Holdings, Inc. (NASDAQ:AFRM)’s share price shot up 11.2% during trading on Friday following a better than expected earnings announcement. The company traded as high as $72.50 and last traded at $73.3650. 2,477,632 shares changed hands during trading, a decline of 66% from the average session volume of 7,212,158 shares. The stock had previously closed at $65.96.

The company reported $0.23 EPS for the quarter, topping analysts’ consensus estimates of $0.11 by $0.12. Affirm had a net margin of 1.62% and a return on equity of 1.80%. The firm had revenue of $933.34 million during the quarter, compared to the consensus estimate of $881.83 million. During the same quarter in the previous year, the firm posted ($0.31) earnings per share. The company’s revenue was up 33.6% compared to the same quarter last year. Affirm has set its Q2 2026 guidance at EPS. FY 2026 guidance at EPS.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Affirm in a research report on Wednesday. Mizuho lifted their price objective on shares of Affirm from $70.00 to $108.00 and gave the company an “outperform” rating in a research note on Tuesday, September 2nd. Deutsche Bank Aktiengesellschaft initiated coverage on shares of Affirm in a report on Thursday, July 17th. They issued a “buy” rating and a $78.00 price target on the stock. Rothschild Redb upgraded Affirm from a “hold” rating to a “strong-buy” rating in a research report on Monday, October 6th. Finally, Citigroup raised Affirm to a “strong-buy” rating in a research report on Thursday, October 23rd. Three equities research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and ten have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $87.22.

Insider Activity

In other news, CAO Siphelele Jiyane sold 25,533 shares of the stock in a transaction on Thursday, September 4th. The shares were sold at an average price of $90.71, for a total transaction of $2,316,098.43. Following the completion of the sale, the chief accounting officer owned 226,467 shares of the company’s stock, valued at $20,542,821.57. This represents a 10.13% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, COO Michael Linford sold 184,200 shares of the business’s stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $80.09, for a total value of $14,752,578.00. Following the completion of the sale, the chief operating officer owned 109,840 shares of the company’s stock, valued at $8,797,085.60. This trade represents a 62.64% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 1,761,596 shares of company stock valued at $148,662,354. 11.01% of the stock is owned by company insiders.

Institutional Trading of Affirm

Institutional investors and hedge funds have recently made changes to their positions in the company. Assetmark Inc. grew its position in Affirm by 111.3% in the 3rd quarter. Assetmark Inc. now owns 338 shares of the company’s stock worth $25,000 after purchasing an additional 178 shares in the last quarter. Huntington National Bank increased its position in shares of Affirm by 634.0% during the second quarter. Huntington National Bank now owns 389 shares of the company’s stock valued at $27,000 after acquiring an additional 336 shares during the last quarter. Mather Group LLC. bought a new stake in Affirm during the third quarter worth $29,000. SouthState Corp increased its position in shares of Affirm by 190.5% during the 2nd quarter. SouthState Corp now owns 427 shares of the company’s stock valued at $30,000 after purchasing an additional 280 shares during the last quarter. Finally, Blume Capital Management Inc. grew its stake in Affirm by 468.8% in the 2nd quarter. Blume Capital Management Inc. now owns 455 shares of the company’s stock valued at $31,000 after buying an additional 375 shares in the last quarter. Hedge funds and other institutional investors own 69.29% of the company’s stock.

Affirm Stock Up 5.6%

The company has a fifty day moving average price of $78.61 and a 200 day moving average price of $68.03. The company has a market cap of $22.68 billion, a PE ratio of 537.90, a price-to-earnings-growth ratio of 4.56 and a beta of 3.57. The company has a debt-to-equity ratio of 2.55, a current ratio of 11.54 and a quick ratio of 11.54.

Affirm Company Profile

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.