Affirm (NASDAQ:AFRM) Sets New 52-Week High Following Better-Than-Expected Earnings

Affirm Holdings, Inc. (NASDAQ:AFRM)’s stock price reached a new 52-week high during trading on Friday following a stronger than expected earnings report. The stock traded as high as $76.88 and last traded at $75.02, with a volume of 11350427 shares trading hands. The stock had previously closed at $61.75.

The company reported $0.23 EPS for the quarter, beating analysts’ consensus estimates of ($0.21) by $0.44. Affirm had a negative return on equity of 12.57% and a negative net margin of 17.67%.

Analyst Upgrades and Downgrades

AFRM has been the subject of a number of recent research reports. Mizuho boosted their price target on shares of Affirm from $65.00 to $69.00 and gave the stock an “outperform” rating in a research note on Tuesday, November 19th. William Blair started coverage on shares of Affirm in a research note on Wednesday, January 15th. They issued an “outperform” rating for the company. JPMorgan Chase & Co. boosted their price target on Affirm from $56.00 to $74.00 and gave the company an “overweight” rating in a report on Monday, December 2nd. Wells Fargo & Company upped their target price on Affirm from $70.00 to $85.00 and gave the stock an “overweight” rating in a report on Friday. Finally, Jefferies Financial Group upgraded Affirm from a “hold” rating to a “buy” rating and lifted their target price for the stock from $70.00 to $82.00 in a research note on Thursday, December 19th. One equities research analyst has rated the stock with a sell rating, nine have given a hold rating, ten have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $63.67.

Insider Activity at Affirm

In related news, COO Michael Linford sold 400,000 shares of the firm’s stock in a transaction that occurred on Thursday, December 12th. The shares were sold at an average price of $68.99, for a total value of $27,596,000.00. Following the completion of the transaction, the chief operating officer now owns 85,420 shares in the company, valued at $5,893,125.80. This trade represents a 82.40 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Robert O’hare sold 100,938 shares of the stock in a transaction that occurred on Monday, November 11th. The stock was sold at an average price of $55.00, for a total value of $5,551,590.00. The disclosure for this sale can be found here. Insiders sold 1,339,564 shares of company stock valued at $87,252,461 over the last 90 days. 12.41% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Amundi raised its holdings in Affirm by 107.5% during the 4th quarter. Amundi now owns 603,437 shares of the company’s stock valued at $35,404,000 after buying an additional 312,620 shares during the period. West Family Investments Inc. purchased a new stake in shares of Affirm during the fourth quarter worth about $296,000. Raymond James Financial Inc. acquired a new stake in shares of Affirm in the fourth quarter worth $14,591,000. Arizona State Retirement System lifted its holdings in shares of Affirm by 2.1% in the 4th quarter. Arizona State Retirement System now owns 69,827 shares of the company’s stock valued at $4,252,000 after buying an additional 1,453 shares during the period. Finally, Proficio Capital Partners LLC acquired a new stake in Affirm in the 4th quarter valued at $8,831,000. 69.29% of the stock is currently owned by institutional investors.

Affirm Stock Performance

The stock has a market cap of $23.30 billion, a price-to-earnings ratio of -52.46 and a beta of 3.66. The company has a current ratio of 12.60, a quick ratio of 12.60 and a debt-to-equity ratio of 2.50. The firm’s 50-day moving average is $62.98 and its two-hundred day moving average is $48.86.

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.