Zacks Research Upgrades Affirm (NASDAQ:AFRM) to Strong-Buy

Affirm (NASDAQ:AFRM) was upgraded by investment analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a report issued on Monday,Zacks.com reports.

Other analysts have also issued reports about the stock. Needham & Company LLC raised their price objective on shares of Affirm from $85.00 to $90.00 and gave the stock a “buy” rating in a report on Friday, May 8th. Wells Fargo & Company upped their target price on Affirm from $89.00 to $96.00 and gave the stock an “overweight” rating in a report on Wednesday, July 8th. UBS Group increased their target price on Affirm from $78.00 to $82.00 and gave the stock a “neutral” rating in a research report on Monday, May 11th. The Goldman Sachs Group raised their target price on Affirm from $90.00 to $106.00 and gave the company a “buy” rating in a research note on Thursday, July 9th. Finally, Susquehanna upped their price target on Affirm from $100.00 to $105.00 and gave the stock a “positive” rating in a research note on Thursday, June 25th. Three research analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat, Affirm presently has a consensus rating of “Moderate Buy” and a consensus price target of $92.74.

Affirm Stock Performance

NASDAQ:AFRM opened at $72.40 on Monday. 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’s fifty day simple moving average is $74.24 and its 200 day simple moving average is $63.50. The stock has a market cap of $24.25 billion, a P/E ratio of 65.82, a price-to-earnings-growth ratio of 2.98 and a beta of 3.67. Affirm has a twelve month low of $42.10 and a twelve month high of $100.00.

Affirm (NASDAQ:AFRM) last posted its earnings results on Thursday, May 7th. The company reported $0.30 EPS for the quarter, topping the consensus estimate of $0.17 by $0.13. The firm had revenue of $943.95 million during the quarter, compared to analysts’ expectations 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 last year, the company posted $0.01 EPS. As a group, research analysts predict that Affirm will post 1.23 EPS for the current year.

Insider Activity at Affirm

In related news, Director Noel Bertram Watson sold 2,000 shares of the firm’s stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $65.00, for a total transaction of $130,000.00. Following the completion of the transaction, the director owned 36,076 shares of the company’s stock, valued at $2,344,940. This trade represents a 5.25% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Michael Linford sold 100,000 shares of Affirm stock in a transaction on Friday, June 26th. The shares were sold at an average price of $80.04, for a total value of $8,004,000.00. Following the transaction, the chief operating officer owned 117,984 shares of the company’s stock, valued at $9,443,439.36. The trade was a 45.87% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 11.01% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Affirm

Several institutional investors and hedge funds have recently modified their holdings of AFRM. Royal Bank of Canada grew its position in Affirm by 2.1% during the 1st quarter. Royal Bank of Canada now owns 193,601 shares of the company’s stock valued at $8,748,000 after purchasing an additional 3,892 shares during the last quarter. Empowered Funds LLC increased its stake in Affirm by 90.7% during the 1st quarter. Empowered Funds LLC now owns 16,852 shares of the company’s stock valued at $762,000 after purchasing an additional 8,014 shares in the last quarter. Focus Partners Wealth purchased a new position in Affirm in the first quarter worth about $243,000. EverSource Wealth Advisors LLC raised its holdings in Affirm by 18.5% in the second quarter. EverSource Wealth Advisors LLC now owns 2,738 shares of the company’s stock worth $189,000 after buying an additional 427 shares during the last quarter. Finally, First Trust Advisors LP lifted its stake in shares of Affirm by 44.8% in the second quarter. First Trust Advisors LP now owns 191,525 shares of the company’s stock worth $13,242,000 after buying an additional 59,297 shares in the last quarter. 69.29% of the stock is currently owned by institutional investors.

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.