Affirm (NASDAQ:AFRM) Posts Earnings Results, Beats Estimates By $0.35 EPS

Affirm (NASDAQ:AFRM – Get Rating) posted its quarterly earnings data on Thursday. The company reported ($0.19) EPS for the quarter, topping analysts’ consensus estimates of ($0.54) by $0.35, MarketWatch Earnings reports. Affirm had a negative return on equity of 22.95% and a negative net margin of 74.96%. The business had revenue of $354.80 million for the quarter, compared to analyst estimates of $344.01 million. During the same period in the previous year, the company posted ($0.72) earnings per share. The firm’s revenue for the quarter was up 53.8% on a year-over-year basis. Affirm updated its FY 2022 guidance to EPS and its Q4 2022 guidance to EPS.

AFRM opened at $23.71 on Friday. The company has a quick ratio of 7.12, a current ratio of 7.12 and a debt-to-equity ratio of 1.62. Affirm has a 12 month low of $13.64 and a 12 month high of $176.65. The company has a fifty day simple moving average of $34.94 and a 200 day simple moving average of $73.18. The stock has a market cap of $6.74 billion, a P/E ratio of -10.00 and a beta of 3.05.

In other news, major shareholder Private Ltd Gic acquired 1,091,738 shares of the stock in a transaction that occurred on Thursday, April 21st. The stock was acquired at an average price of $33.33 per share, for a total transaction of $36,387,627.54. Following the transaction, the insider now directly owns 2,785,714 shares in the company, valued at $92,847,847.62. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. In the last 90 days, insiders purchased 2,107,799 shares of company stock valued at $68,998,013. 16.48% of the stock is owned by corporate insiders.

A number of hedge funds have recently added to or reduced their stakes in AFRM. BlackRock Inc. increased its holdings in Affirm by 108.7% during the 4th quarter. BlackRock Inc. now owns 3,748,719 shares of the company’s stock worth $376,972,000 after purchasing an additional 1,952,615 shares in the last quarter. Vanguard Group Inc. increased its holdings in Affirm by 12.9% during the 1st quarter. Vanguard Group Inc. now owns 16,498,384 shares of the company’s stock worth $763,545,000 after purchasing an additional 1,883,050 shares in the last quarter. Northern Trust Corp increased its holdings in Affirm by 63.5% during the 1st quarter. Northern Trust Corp now owns 715,871 shares of the company’s stock worth $33,131,000 after purchasing an additional 277,903 shares in the last quarter. Legal & General Group Plc increased its holdings in Affirm by 25,351.0% during the 4th quarter. Legal & General Group Plc now owns 216,079 shares of the company’s stock worth $21,728,000 after purchasing an additional 215,230 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. increased its holdings in Affirm by 13.3% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 870,959 shares of the company’s stock worth $40,308,000 after purchasing an additional 102,301 shares in the last quarter. Hedge funds and other institutional investors own 58.34% of the company’s stock.

Several equities research analysts have recently weighed in on AFRM shares. JPMorgan Chase & Co. started coverage on Affirm in a research note on Wednesday. They issued a “neutral” rating and a $30.00 price objective on the stock. Moffett Nathanson began coverage on Affirm in a report on Tuesday, April 5th. They issued a “neutral” rating and a $50.00 target price on the stock. Piper Sandler reduced their target price on Affirm from $58.00 to $32.00 in a report on Friday. Stephens downgraded Affirm from an “equal weight” rating to an “underweight” rating and reduced their target price for the stock from $51.00 to $17.00 in a report on Tuesday. Finally, Morgan Stanley reduced their price objective on Affirm from $140.00 to $80.00 and set an “overweight” rating on the stock in a report on Wednesday, March 23rd. Two research analysts have rated the stock with a sell rating, seven have issued a hold rating and eight have given a buy rating to the company’s stock. According to MarketBeat.com, Affirm currently has an average rating of “Hold” and an average price target of $71.53.

Affirm Company Profile (Get Rating)

Affirm Holdings, Inc operates a platform for digital and mobile-first commerce in the United States and Canada. The company's platform includes point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app. Its payments network and partnership with an originating bank, enables consumers to pay for a purchase over time with terms ranging from one to forty-eight months.

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