Affirm (NASDAQ:AFRM) Issues Earnings Results, Beats Expectations By $0.31 EPS

Affirm (NASDAQ:AFRM) announced its quarterly earnings data on Wednesday. The company reported ($0.14) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.45) by $0.31, reports. Affirm had a negative net margin of 32.17% and a negative return on equity of 22.06%. The business had revenue of $659.19 million during the quarter, compared to the consensus estimate of $599.50 million. Affirm updated its Q1 2025 guidance to EPS.

Affirm Stock Performance

Shares of AFRM opened at $41.66 on Friday. The stock has a fifty day moving average price of $29.15 and a 200-day moving average price of $32.38. Affirm has a 12 month low of $15.97 and a 12 month high of $52.48. The firm has a market cap of $12.88 billion, a PE ratio of -18.68 and a beta of 3.45. The company has a current ratio of 12.94, a quick ratio of 12.94 and a debt-to-equity ratio of 2.43.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on AFRM shares. Needham & Company LLC reissued a “hold” rating on shares of Affirm in a research note on Thursday. Royal Bank of Canada boosted their target price on shares of Affirm from $43.00 to $46.00 and gave the company a “sector perform” rating in a research note on Thursday. Bank of America raised their price target on shares of Affirm from $36.00 to $42.00 and gave the stock a “buy” rating in a research note on Thursday. JPMorgan Chase & Co. lifted their price objective on shares of Affirm from $43.00 to $45.00 and gave the company an “overweight” rating in a report on Tuesday, August 20th. Finally, BMO Capital Markets dropped their target price on shares of Affirm from $48.00 to $46.00 and set a “market perform” rating on the stock in a research note on Friday, May 10th. Five research analysts have rated the stock with a sell rating, nine have given a hold rating and six have assigned a buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $33.79.

Insiders Place Their Bets

In other news, Director Keith Rabois sold 9,275 shares of the company’s stock in a transaction dated Thursday, August 1st. The shares were sold at an average price of $26.90, for a total transaction of $249,497.50. Following the transaction, the director now owns 64,348 shares in the company, valued at $1,730,961.20. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 13.05% of the company’s stock.

Institutional Investors Weigh In On Affirm

Institutional investors and hedge funds have recently modified their holdings of the company. Global Wealth Strategies & Associates increased its holdings in Affirm by 94.0% in the 1st quarter. Global Wealth Strategies & Associates now owns 970 shares of the company’s stock worth $36,000 after buying an additional 470 shares during the period. Allspring Global Investments Holdings LLC increased its stake in shares of Affirm by 82.4% in the second quarter. Allspring Global Investments Holdings LLC now owns 1,195 shares of the company’s stock worth $36,000 after acquiring an additional 540 shares during the period. ORG Partners LLC increased its stake in shares of Affirm by 80.0% in the second quarter. ORG Partners LLC now owns 1,240 shares of the company’s stock worth $37,000 after acquiring an additional 551 shares during the period. Raleigh Capital Management Inc. purchased a new position in shares of Affirm during the fourth quarter worth $33,000. Finally, Myecfo LLC lifted its position in Affirm by 6.1% during the second quarter. Myecfo LLC now owns 11,671 shares of the company’s stock valued at $353,000 after purchasing an additional 676 shares during the period. 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.