Affirm (NASDAQ:AFRM) Issues Earnings Results, Beats Estimates by $0.35 EPS
Affirm (NASDAQ:AFRM – Get Rating) posted its quarterly earnings results on Thursday. The company reported ($0.19) earnings per share 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 the consensus estimate of $344.01 million. During the same period in the prior year, the business earned ($0.72) EPS. 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.
Shares of AFRM stock opened at $23.71 on Friday. The company has a debt-to-equity ratio of 1.62, a quick ratio of 7.12 and a current ratio of 7.12. Affirm has a 52-week low of $13.64 and a 52-week high of $176.65. The company has a market capitalization of $6.74 billion, a PE ratio of -10.00 and a beta of 3.05. The business’s fifty day moving average is $34.94 and its 200 day moving average is $73.18.
A number of research analysts recently weighed in on AFRM shares. Stephens downgraded Affirm from an “equal weight” rating to an “underweight” rating and dropped their price target for the stock from $51.00 to $17.00 in a research note on Tuesday. Royal Bank of Canada lowered their price objective on Affirm from $58.00 to $48.00 in a research note on Friday. Zacks Investment Research raised Affirm from a “sell” rating to a “hold” rating in a research note on Wednesday, April 13th. JPMorgan Chase & Co. initiated coverage on Affirm in a report on Wednesday. They issued a “neutral” rating and a $30.00 target price for the company. Finally, Mizuho upped their target price on Affirm from $77.00 to $79.00 and gave the company a “buy” rating in a report on Tuesday, March 15th. Two investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and eight have assigned a buy rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $71.53.
In other Affirm news, major shareholder Private Ltd Gic acquired 134,197 shares of the stock in a transaction that occurred on Tuesday, April 19th. The shares were bought at an average price of $34.98 per share, for a total transaction of $4,694,211.06. Following the completion of the transaction, the insider now owns 812,086 shares of the company’s stock, valued at approximately $28,406,768.28. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Insiders purchased 2,107,799 shares of company stock worth $68,998,013 in the last quarter. 16.48% of the stock is currently owned by company insiders.
Several hedge funds have recently modified their holdings of AFRM. Dimensional Fund Advisors LP purchased a new stake in shares of Affirm in the third quarter worth $1,034,000. Invesco Ltd. purchased a new stake in shares of Affirm in the third quarter worth $444,000. Privium Fund Management UK Ltd purchased a new stake in Affirm during the fourth quarter valued at about $6,659,000. Guggenheim Capital LLC purchased a new stake in Affirm during the fourth quarter valued at about $583,000. Finally, Mackenzie Financial Corp purchased a new stake in Affirm during the fourth quarter valued at about $301,000. Institutional investors own 58.34% of the company’s stock.
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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