Affirm (NASDAQ:AFRM) Price Target Raised to $105.00

Affirm (NASDAQ:AFRM) had its target price hoisted by equities research analysts at JPMorgan Chase & Co. from $90.00 to $105.00 in a research note issued to investors on Friday,Benzinga reports. The firm presently has an “overweight” rating on the stock. JPMorgan Chase & Co.‘s target price indicates a potential upside of 24.64% from the company’s previous close.

A number of other research analysts have also issued reports on AFRM. Piper Sandler reiterated an “overweight” rating and issued a $115.00 price objective on shares of Affirm in a report on Friday. Robert W. Baird raised their price target on shares of Affirm from $70.00 to $82.00 and gave the company a “neutral” rating in a research note on Tuesday, July 14th. UBS Group reissued a “neutral” rating and issued a $90.00 price objective on shares of Affirm in a research note on Friday. Truist Financial lifted their target price on Affirm from $80.00 to $83.00 and gave the stock a “buy” rating in a report on Friday, July 24th. Finally, Barclays restated an “overweight” rating and set a $105.00 price objective (up from $97.00) on shares of Affirm in a research report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and eight have assigned a Hold rating to the stock. Based on data from MarketBeat, Affirm currently has an average rating of “Moderate Buy” and an average price target of $97.69.

Affirm Price Performance

Shares of NASDAQ:AFRM traded up $6.75 during trading on Friday, hitting $84.24. 9,416,305 shares of the company were exchanged, compared to its average volume of 5,210,522. Affirm has a 1-year low of $42.10 and a 1-year high of $100.00. The company has a market capitalization of $28.21 billion, a P/E ratio of 76.58, a price-to-earnings-growth ratio of 3.10 and a beta of 3.71. The company has a quick ratio of 11.32, a current ratio of 11.32 and a debt-to-equity ratio of 2.39. The business’s 50 day moving average is $77.37 and its 200-day moving average is $64.50.

Affirm (NASDAQ:AFRM) last issued its quarterly earnings data on Thursday, August 27th. The company reported $4.62 earnings per share for the quarter, topping analysts’ consensus estimates of $0.35 by $4.27. Affirm had a return on equity of 11.17% and a net margin of 9.63%.The business had revenue of $1.07 billion for the quarter, compared to analyst estimates of $1.11 billion. During the same quarter in the previous year, the company posted $0.20 EPS. Affirm’s quarterly revenue was up 33.1% compared to the same quarter last year. Equities analysts forecast that Affirm will post 1.24 earnings per share for the current year.

Insider Transactions at Affirm

In other Affirm news, COO Michael Linford sold 100,000 shares of the stock in a transaction that occurred on Friday, June 26th. The stock was sold at an average price of $80.04, for a total transaction of $8,004,000.00. Following the transaction, the chief operating officer directly owned 117,984 shares in the company, valued at approximately $9,443,439.36. This represents a 45.87% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 11.01% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Corient Private Wealth LP grew its holdings in Affirm by 101.4% in the second quarter. Corient Private Wealth LP now owns 31,063 shares of the company’s stock worth $2,533,000 after purchasing an additional 15,642 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in shares of Affirm during the 2nd quarter worth about $6,158,000. California State Teachers Retirement System increased its position in Affirm by 7,715.3% in the 2nd quarter. California State Teachers Retirement System now owns 29,932,275 shares of the company’s stock valued at $2,440,977,000 after buying an additional 29,549,277 shares in the last quarter. Readystate Asset Management LP raised its stake in Affirm by 4.6% during the 2nd quarter. Readystate Asset Management LP now owns 67,315 shares of the company’s stock worth $5,490,000 after buying an additional 2,970 shares during the period. Finally, Aspire Capital Advisors LLC boosted its holdings in Affirm by 8.2% in the second quarter. Aspire Capital Advisors LLC now owns 8,507 shares of the company’s stock worth $694,000 after acquiring an additional 647 shares in the last quarter. Institutional investors and hedge funds own 69.29% of the company’s stock.

Affirm News Roundup

Here are the key news stories impacting Affirm this week:

• Positive Sentiment: Strong operating performance: Affirm reported 33% year-over-year revenue growth, 36% gross merchandise volume growth and a 49% increase in adjusted operating income. Expanding margins, stable credit performance and a 103-basis-point decline in funding costs to 5.8% supported profitability. Affirm: Ignore The Ludicrous $1.6 Billion, Own The Real Story
• Positive Sentiment: Headline earnings beat estimates: Fiscal fourth-quarter EPS was $4.62 versus consensus estimates of roughly $0.33-$0.35, compared with $0.20 a year earlier. The earnings release and related coverage also pointed to better-than-expected GMV and continued momentum in the BNPL business. Affirm Stock Jumps After Earnings
• Positive Sentiment: Analyst support improved: BMO Capital Markets raised its price target to $101 and assigned an outperform rating, while Cantor Fitzgerald reaffirmed its overweight rating with an $88 target. Morgan Stanley also increased its target to $80, although it maintained an equal-weight rating.
• Positive Sentiment: International expansion: Affirm and Shopify launched Shop Pay Installments in Australia, extending Affirm’s exclusive partnership to another market and potentially broadening transaction volume over time. Affirm and Shopify launch Shop Pay Installments in Australia
• Neutral Sentiment: Fiscal 2027 outlook: First-quarter revenue guidance of approximately $1.2 billion was broadly in line with consensus, limiting the possibility of a major near-term forecast surprise.
• Negative Sentiment: Quality of the EPS beat is a concern: The unusually large GAAP profit primarily reflected a one-time tax allowance release rather than recurring earnings power. Revenue of $1.07 billion also fell short of the approximately $1.11 billion analyst estimate, making underlying operating metrics more important to investors.
• Negative Sentiment: Valuation and mixed ratings: With a high earnings multiple and a recent Zacks downgrade from strong buy to hold, some investors may question whether the operational gains are fully reflected in AFRM’s valuation.

Affirm Company Profile

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.