Affirm (NASDAQ:AFRM) Stock Price Up 8.5% – Here’s Why

Affirm Holdings, Inc. (NASDAQ:AFRM)’s share price shot up 8.5% on Wednesday . The stock traded as high as $76.95 and last traded at $77.9450. Approximately 547,652 shares traded hands during mid-day trading, a decline of 91% from the average daily volume of 5,776,362 shares. The stock had previously closed at $71.83.

Wall Street Analyst Weigh In

AFRM has been the subject of several analyst reports. Royal Bank Of Canada upped their price target on shares of Affirm from $77.00 to $80.00 and gave the company a “sector perform” rating in a research report on Friday, May 8th. JPMorgan Chase & Co. boosted their target price on Affirm from $79.00 to $80.00 and gave the company an “overweight” rating in a research note on Friday, May 8th. Citigroup restated a “buy” rating on shares of Affirm in a report on Wednesday, April 15th. Zacks Research lowered Affirm from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, April 29th. Finally, Stephens raised their price target on Affirm from $55.00 to $75.00 and gave the stock an “equal weight” rating in a research report on Friday, May 8th. One analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat, Affirm currently has a consensus rating of “Moderate Buy” and an average price target of $86.68.

Affirm Stock Performance

The business’s fifty day simple moving average is $67.42 and its 200-day simple moving average is $62.66. The firm has a market cap of $25.74 billion, a P/E ratio of 69.86, a price-to-earnings-growth ratio of 4.47 and a beta of 3.70. The company has a current ratio of 11.32, a quick ratio of 11.32 and a debt-to-equity ratio of 2.39.

Affirm (NASDAQ:AFRM) last issued its quarterly earnings data on Thursday, May 7th. The company reported $0.30 EPS for the quarter, beating the consensus estimate of $0.17 by $0.13. The firm had revenue of $943.95 million during the quarter, compared to the consensus estimate of $995.27 million. Affirm had a net margin of 9.63% and a return on equity of 11.17%. The company’s quarterly revenue was up 32.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.01 earnings per share. As a group, sell-side analysts expect that Affirm Holdings, Inc. will post 1.25 earnings per share for the current year.

Insider Buying and Selling

In other Affirm news, Director Noel Bertram Watson sold 2,000 shares of the stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $65.00, for a total value of $130,000.00. Following the completion of the sale, the director owned 36,076 shares in the company, valued at approximately $2,344,940. This trade represents a 5.25% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 11.01% of the stock is owned by insiders.

Hedge Funds Weigh In On Affirm

A number of hedge funds and other institutional investors have recently made changes to their positions in AFRM. Vanguard Group Inc. boosted its holdings in Affirm by 1.8% in the fourth quarter. Vanguard Group Inc. now owns 24,847,206 shares of the company’s stock valued at $1,849,378,000 after acquiring an additional 428,138 shares in the last quarter. Capital Research Global Investors raised its holdings in Affirm by 0.5% in the 4th quarter. Capital Research Global Investors now owns 23,145,942 shares of the company’s stock worth $1,722,797,000 after purchasing an additional 104,239 shares in the last quarter. Capital World Investors lifted its position in shares of Affirm by 2.4% in the 4th quarter. Capital World Investors now owns 21,710,914 shares of the company’s stock worth $1,615,953,000 after purchasing an additional 507,224 shares during the period. Durable Capital Partners LP lifted its position in shares of Affirm by 12.3% in the 2nd quarter. Durable Capital Partners LP now owns 7,389,337 shares of the company’s stock worth $510,899,000 after purchasing an additional 808,455 shares during the period. Finally, State Street Corp boosted its stake in shares of Affirm by 26.7% during the 3rd quarter. State Street Corp now owns 5,641,965 shares of the company’s stock valued at $412,315,000 after purchasing an additional 1,187,665 shares in the last quarter. Institutional investors own 69.29% of the company’s stock.

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.