Affirm (NASDAQ:AFRM) Sees Large Volume Increase Following Better-Than-Expected Earnings

Affirm Holdings, Inc. (NASDAQ:AFRM) shares saw an uptick in trading volume on Thursday following a stronger than expected earnings report. 14,992,372 shares traded hands during trading, an increase of 84% from the previous session’s volume of 8,151,639 shares.The stock last traded at $40.05 and had previously closed at $31.58.

The company reported ($0.14) EPS for the quarter, topping analysts’ consensus estimates of ($0.45) by $0.31. Affirm had a negative net margin of 32.17% and a negative return on equity of 22.06%. The firm had revenue of $659.19 million for the quarter, compared to analyst estimates of $599.50 million.

Analyst Ratings Changes

A number of brokerages have commented on AFRM. Royal Bank of Canada increased their price objective on shares of Affirm from $43.00 to $46.00 and gave the stock a “sector perform” rating in a report on Thursday. JPMorgan Chase & Co. raised their target price on shares of Affirm from $43.00 to $45.00 and gave the company an “overweight” rating in a research note on Tuesday, August 20th. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $42.00 target price on shares of Affirm in a research note on Monday, June 24th. Needham & Company LLC reaffirmed a “hold” rating on shares of Affirm in a research note on Thursday. Finally, Mizuho reaffirmed an “outperform” rating and issued a $65.00 target price on shares of Affirm in a research note on Tuesday. Five investment analysts have rated the stock with a sell rating, nine have issued a hold rating and six have assigned a buy rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $33.50.

Insider Activity

In other news, Director Keith Rabois sold 9,276 shares of Affirm stock in a transaction that occurred on Monday, July 1st. The shares were sold at an average price of $29.89, for a total value of $277,259.64. Following the sale, the director now directly owns 73,623 shares in the company, valued at $2,200,591.47. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 13.05% of the stock is owned by corporate insiders.

Institutional Trading of Affirm

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Global Wealth Strategies & Associates grew its stake in shares of Affirm by 94.0% in the first quarter. Global Wealth Strategies & Associates now owns 970 shares of the company’s stock valued at $36,000 after buying an additional 470 shares in the last quarter. Allspring Global Investments Holdings LLC grew 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 valued at $36,000 after buying an additional 540 shares in the last quarter. ORG Partners LLC boosted its position in Affirm by 80.0% during the second quarter. ORG Partners LLC now owns 1,240 shares of the company’s stock worth $37,000 after purchasing an additional 551 shares during the period. Raleigh Capital Management Inc. bought a new position in Affirm during the fourth quarter worth $33,000. Finally, Myecfo LLC boosted its position in Affirm by 6.1% during the second quarter. Myecfo LLC now owns 11,671 shares of the company’s stock worth $353,000 after purchasing an additional 676 shares during the period. 69.29% of the stock is currently owned by institutional investors and hedge funds.

Affirm Stock Up 32.7 %

The company has a quick ratio of 12.94, a current ratio of 12.94 and a debt-to-equity ratio of 2.43. The company has a market cap of $12.96 billion, a price-to-earnings ratio of -17.75 and a beta of 3.45. The stock has a fifty day moving average price of $28.92 and a two-hundred day moving average price of $32.32.

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.