Affirm (NASDAQ:AFRM) Sets New 1-Year High – Still a Buy?

Affirm Holdings, Inc. (NASDAQ:AFRM)’s share price hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as $57.93 and last traded at $57.89, with a volume of 15468768 shares. The stock had previously closed at $57.59.

Analysts Set New Price Targets

A number of equities research analysts have commented on AFRM shares. Barclays increased their price objective on shares of Affirm from $50.00 to $54.00 and gave the company an “overweight” rating in a research report on Monday, September 23rd. Morgan Stanley upgraded Affirm from an “underweight” rating to an “equal weight” rating and raised their price target for the company from $22.00 to $37.00 in a research note on Wednesday, October 9th. BTIG Research upgraded Affirm from a “neutral” rating to a “buy” rating and set a $68.00 price objective on the stock in a report on Tuesday, October 8th. Mizuho restated an “outperform” rating and set a $65.00 target price on shares of Affirm in a research note on Tuesday, August 27th. Finally, Wedbush upgraded shares of Affirm from an “underperform” rating to a “neutral” rating and increased their price target for the company from $25.00 to $45.00 in a research note on Monday, October 14th. One research analyst has rated the stock with a sell rating, nine have assigned a hold rating and nine have given a buy rating to the stock. According to data from MarketBeat, Affirm currently has a consensus rating of “Hold” and an average price target of $46.03.

Affirm Stock Down 2.9 %

The company has a market capitalization of $16.55 billion, a price-to-earnings ratio of -37.47 and a beta of 3.47. 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 simple moving average is $44.13 and its 200-day simple moving average is $35.50.

Affirm (NASDAQ:AFRM) last posted its quarterly earnings results on Thursday, November 7th. The company reported ($0.31) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.36) by $0.05. Affirm had a negative net margin of 17.67% and a negative return on equity of 12.57%. The firm had revenue of $698.48 million during the quarter, compared to analysts’ expectations of $661.39 million. During the same period in the prior year, the company posted ($0.57) earnings per share. On average, sell-side analysts anticipate that Affirm Holdings, Inc. will post -0.6 EPS for the current fiscal year.

Insider Activity at Affirm

In related news, insider Katherine Adkins sold 200,000 shares of the stock in a transaction dated Monday, November 11th. The shares were sold at an average price of $55.05, for a total value of $11,010,000.00. Following the sale, the insider now directly owns 93,545 shares of the company’s stock, valued at approximately $5,149,652.25. This represents a 68.13 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Robert O’hare sold 100,938 shares of the firm’s stock in a transaction that occurred on Monday, November 11th. The stock was sold at an average price of $55.00, for a total transaction of $5,551,590.00. The disclosure for this sale can be found here. Insiders have sold a total of 403,738 shares of company stock worth $21,115,878 over the last three months. 12.41% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Oppenheimer & Co. Inc. acquired a new stake in shares of Affirm in the first quarter worth $265,000. Swiss National Bank lifted its stake in shares of Affirm by 1.2% during the first quarter. Swiss National Bank now owns 430,400 shares of the company’s stock worth $16,037,000 after purchasing an additional 5,100 shares in the last quarter. US Bancorp DE boosted its position in shares of Affirm by 5.6% in the first quarter. US Bancorp DE now owns 17,166 shares of the company’s stock worth $640,000 after buying an additional 914 shares during the period. Avantax Advisory Services Inc. acquired a new stake in shares of Affirm in the first quarter valued at about $258,000. Finally, Lord Abbett & CO. LLC lifted its position in Affirm by 1.8% during the 1st quarter. Lord Abbett & CO. LLC now owns 112,896 shares of the company’s stock worth $4,207,000 after acquiring an additional 2,033 shares in the last quarter. Institutional investors and hedge funds own 69.29% of the company’s stock.

About Affirm

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.