Affirm (NASDAQ:AFRM) Cut to Hold at Wall Street Zen

Affirm (NASDAQ:AFRM) was downgraded by stock analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued on Saturday.

A number of other research firms have also recently issued reports on AFRM. Morgan Stanley cut their target price on shares of Affirm from $90.00 to $83.00 and set an “equal weight” rating for the company in a research note on Friday, November 7th. JPMorgan Chase & Co. increased their price target on shares of Affirm from $91.00 to $94.00 and gave the company an “overweight” rating in a report on Friday, August 29th. Royal Bank Of Canada reduced their price objective on Affirm from $97.00 to $87.00 and set a “sector perform” rating for the company in a report on Friday, November 7th. Rothschild Redb raised Affirm from a “hold” rating to a “strong-buy” rating in a research report on Monday, October 6th. Finally, Weiss Ratings reissued a “hold (c-)” rating on shares of Affirm in a report on Monday. Three equities research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and ten have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $86.57.

Affirm Stock Performance

AFRM opened at $70.98 on Friday. The company has a quick ratio of 12.80, a current ratio of 12.80 and a debt-to-equity ratio of 2.40. Affirm has a 12-month low of $30.90 and a 12-month high of $100.00. The business has a 50 day moving average of $73.03 and a 200-day moving average of $70.31. The stock has a market cap of $23.43 billion, a price-to-earnings ratio of 105.93, a PEG ratio of 3.10 and a beta of 3.57.

Affirm (NASDAQ:AFRM) last posted its earnings results on Thursday, November 6th. The company reported $0.23 earnings per share for the quarter, topping analysts’ consensus estimates of $0.11 by $0.12. Affirm had a return on equity of 7.75% and a net margin of 6.74%.The business had revenue of $933.34 million for the quarter, compared to analyst estimates of $881.83 million. During the same period in the previous year, the firm earned ($0.31) EPS. The firm’s revenue was up 33.6% compared to the same quarter last year. Affirm has set its Q2 2026 guidance at EPS. FY 2026 guidance at EPS. On average, equities research analysts expect that Affirm will post -0.18 earnings per share for the current year.

Insider Buying and Selling

In related news, CFO Robert O’hare sold 31,423 shares of the company’s stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $83.30, for a total transaction of $2,617,535.90. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Max R. Levchin sold 651,713 shares of the stock in a transaction dated Monday, September 22nd. The stock was sold at an average price of $89.27, for a total transaction of $58,178,419.51. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 721,169 shares of company stock worth $64,179,804. Company insiders own 11.01% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its stake in Affirm by 0.9% during the third quarter. Vanguard Group Inc. now owns 24,419,068 shares of the company’s stock worth $1,784,545,000 after purchasing an additional 223,258 shares during the last quarter. Durable Capital Partners LP raised its holdings in shares of Affirm by 12.3% during the 2nd quarter. Durable Capital Partners LP now owns 7,389,337 shares of the company’s stock worth $510,899,000 after buying an additional 808,455 shares in the last quarter. State Street Corp raised its holdings in shares of Affirm by 26.7% during the 3rd quarter. State Street Corp now owns 5,641,965 shares of the company’s stock worth $412,315,000 after buying an additional 1,187,665 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of Affirm by 5.8% during the 2nd quarter. Geode Capital Management LLC now owns 4,659,287 shares of the company’s stock worth $322,195,000 after buying an additional 254,359 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD boosted its stake in Affirm by 140.8% in the first quarter. Price T Rowe Associates Inc. MD now owns 4,544,132 shares of the company’s stock valued at $205,350,000 after buying an additional 2,657,074 shares in the last quarter. 69.29% of the stock is owned by institutional investors.

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.