Affirm (NASDAQ:AFRM) Releases Earnings Results, Beats Expectations By $4.27 EPS

Affirm (NASDAQ:AFRM) released its quarterly earnings data on Thursday. The company reported $4.62 earnings per share for the quarter, topping analysts’ consensus estimates of $0.35 by $4.27, FiscalAI reports. The business had revenue of $1.07 billion for the quarter, compared to analysts’ expectations of $1.11 billion. Affirm had a net margin of 9.63% and a return on equity of 11.17%.

Affirm Stock Performance

Affirm stock traded up $1.03 during mid-day trading on Thursday, reaching $77.49. The company had a trading volume of 8,531,297 shares, compared to its average volume of 5,184,837. 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 firm has a market cap of $25.95 billion, a price-to-earnings ratio of 70.45, a PEG ratio of 3.16 and a beta of 3.71. The company has a 50 day moving average of $77.30 and a 200-day moving average of $64.36. Affirm has a 52 week low of $42.10 and a 52 week high of $100.00.

Insiders Place Their Bets

In related news, COO Michael Linford sold 100,000 shares of the company’s stock in a transaction on Friday, June 26th. The stock was sold at an average price of $80.04, for a total value of $8,004,000.00. Following the completion of 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 ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 11.01% of the stock is currently owned by company insiders.

Institutional Trading of Affirm

Several institutional investors have recently bought and sold shares of AFRM. Corient Private Wealth LLC raised its position in shares of Affirm by 134.4% during the fourth quarter. Corient Private Wealth LLC now owns 39,918 shares of the company’s stock worth $2,971,000 after purchasing an additional 22,886 shares during the period. Alberta Investment Management Corp acquired a new stake in Affirm in the 4th quarter valued at $5,277,000. Strive Financial Group LLC bought a new stake in Affirm during the 4th quarter worth about $33,000. Vident Advisory LLC boosted its position in Affirm by 3.7% during the fourth quarter. Vident Advisory LLC now owns 15,874 shares of the company’s stock valued at $1,182,000 after purchasing an additional 572 shares during the last quarter. Finally, Empowered Funds LLC boosted its holdings in shares of Affirm by 25.7% in the 4th quarter. Empowered Funds LLC now owns 13,308 shares of the company’s stock valued at $991,000 after buying an additional 2,720 shares during the last quarter. Institutional investors and hedge funds own 69.29% of the company’s stock.

Affirm News Summary

Here are the key news stories impacting Affirm this week:

• Positive Sentiment: Shopify expansion supports growth prospects: Affirm and Shopify launched Shop Pay Installments in Australia, giving Australian consumers access to Affirm-powered installment payments through Shopify’s checkout. The partnership could expand Affirm’s merchant reach, transaction volume and international growth opportunity. Affirm and Shopify launch Shop Pay Installments in Australia
• Positive Sentiment: Some analysts remain constructive: Affirm has a consensus analyst recommendation of “Moderate Buy,” while Morgan Stanley raised its price target from $79 to $80 and maintained an Equal Weight rating. The increase suggests limited but positive upside from recent trading levels. Affirm receives Moderate Buy consensus
• Neutral Sentiment: Earnings are the main near-term catalyst: Recent coverage highlights Affirm’s upcoming results and its 76% earnings-per-share beat in the prior quarter. Investors are looking for evidence that the company can sustain strong growth and profitability, but the supplied reports do not include the latest results. Affirm prior EPS beat
• Neutral Sentiment: Analyst views remain divided: RBC Capital Markets assigned a Hold rating, and other coverage describes analysts as conflicted. The stock has recently traded in a narrow range, leaving earnings guidance and management commentary likely to determine its next major move. RBC Capital Hold rating
• Negative Sentiment: Zacks downgrade adds pressure: Zacks Research cut Affirm from “Strong Buy” to “Hold,” potentially limiting enthusiasm ahead of earnings and reinforcing concerns that the current valuation already reflects substantial growth expectations. Zacks downgrades Affirm

Wall Street Analysts Forecast Growth

AFRM has been the topic of several recent analyst reports. Piper Sandler assumed coverage on Affirm in a research note on Monday, June 29th. They set an “overweight” rating and a $103.00 target price on the stock. Sanford C. Bernstein began coverage on Affirm in a research note on Tuesday, July 21st. They set an “outperform” rating and a $100.00 target price for the company. The Goldman Sachs Group lifted their price target on shares of Affirm from $90.00 to $106.00 and gave the stock a “buy” rating in a research report on Thursday, July 9th. BTIG Research reaffirmed a “neutral” rating on shares of Affirm in a research note on Tuesday, May 26th. Finally, Barclays initiated coverage on Affirm in a report on Wednesday, July 8th. They set an “overweight” rating and a $97.00 price target on the stock. One equities research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and nine have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $93.62.

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.