Royal Bank of Canada Reiterates Sector Perform Rating for Affirm (NASDAQ:AFRM)

Affirm (NASDAQ:AFRM)‘s stock had its “sector perform” rating restated by stock analysts at Royal Bank of Canada in a research report issued on Friday, Benzinga reports. They currently have a $43.00 target price on the stock. Royal Bank of Canada’s price objective points to a potential upside of 43.19% from the stock’s current price.

A number of other brokerages have also recently issued reports on AFRM. BMO Capital Markets decreased their target price on Affirm from $48.00 to $46.00 and set a “market perform” rating for the company in a research report on Friday, May 10th. Stephens increased their target price on Affirm from $6.00 to $16.00 and gave the stock an “underweight” rating in a research note on Friday, February 9th. Deutsche Bank Aktiengesellschaft increased their target price on Affirm from $24.00 to $35.00 and gave the stock a “hold” rating in a research note on Friday, February 9th. Wedbush reaffirmed an “underperform” rating and issued a $20.00 price objective on shares of Affirm in a research note on Friday, February 9th. Finally, Needham & Company LLC reiterated a “hold” rating on shares of Affirm in a report on Thursday, May 9th. Six investment analysts have rated the stock with a sell rating, eight have assigned a hold rating and four have issued a buy rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $27.53.

Affirm Price Performance

Shares of NASDAQ AFRM opened at $30.03 on Friday. The stock’s 50-day moving average is $33.45 and its two-hundred day moving average is $37.03. The company has a debt-to-equity ratio of 2.43, a current ratio of 12.94 and a quick ratio of 12.94. Affirm has a 1-year low of $12.81 and a 1-year high of $52.48. The company has a market cap of $9.28 billion, a price-to-earnings ratio of -13.47 and a beta of 3.56.

Affirm (NASDAQ:AFRM) last released its quarterly earnings data on Wednesday, May 8th. The company reported ($0.43) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.70) by $0.27. The business had revenue of $576.00 million during the quarter, compared to analysts’ expectations of $549.99 million. Affirm had a negative return on equity of 22.06% and a negative net margin of 32.17%. The business’s quarterly revenue was up 51.2% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.69) EPS. Analysts forecast that Affirm will post -1.98 EPS for the current fiscal year.

Insider Transactions at Affirm

In related news, Director Keith Rabois sold 9,276 shares of Affirm stock in a transaction on Wednesday, May 1st. The stock was sold at an average price of $32.12, for a total value of $297,945.12. Following the transaction, the director now owns 60,000 shares in the company, valued at $1,927,200. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 13.05% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Charles Schwab Investment Management Inc. lifted its stake in shares of Affirm by 1.8% in the third quarter. Charles Schwab Investment Management Inc. now owns 1,298,330 shares of the company’s stock worth $27,615,000 after acquiring an additional 23,248 shares in the last quarter. QRG Capital Management Inc. bought a new position in Affirm during the 3rd quarter valued at $3,701,000. International Assets Investment Management LLC acquired a new stake in shares of Affirm during the 4th quarter valued at $1,698,000. Trexquant Investment LP lifted its position in shares of Affirm by 79.1% during the 3rd quarter. Trexquant Investment LP now owns 395,889 shares of the company’s stock valued at $8,421,000 after acquiring an additional 174,807 shares during the last quarter. Finally, Exchange Traded Concepts LLC acquired a new stake in shares of Affirm during the 4th quarter valued at $1,816,000. 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.