Royal Bank Of Canada Has Lowered Expectations for Affirm (NASDAQ:AFRM) Stock Price

Affirm (NASDAQ:AFRM) had its target price reduced by stock analysts at Royal Bank Of Canada from $87.00 to $77.00 in a research note issued to investors on Friday, MarketBeat reports. The firm presently has a “sector perform” rating on the stock. Royal Bank Of Canada’s price objective suggests a potential upside of 35.02% from the company’s previous close.

AFRM has been the subject of several other research reports. BTIG Research reissued a “neutral” rating on shares of Affirm in a research note on Wednesday, December 17th. The Goldman Sachs Group set a $83.00 price target on Affirm in a report on Friday. Wolfe Research started coverage on shares of Affirm in a report on Tuesday, December 9th. They issued a “peer perform” rating on the stock. UBS Group set a $78.00 target price on shares of Affirm in a research report on Friday. Finally, Weiss Ratings reiterated a “hold (c-)” rating on shares of Affirm in a research report on Monday, December 29th. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat.com, Affirm presently has an average rating of “Moderate Buy” and a consensus target price of $87.21.

Affirm Price Performance

Affirm stock opened at $57.03 on Friday. The company has a current ratio of 12.80, a quick ratio of 12.80 and a debt-to-equity ratio of 2.40. The company has a 50-day moving average price of $71.53 and a 200 day moving average price of $74.23. Affirm has a 12-month low of $30.90 and a 12-month high of $100.00. The stock has a market cap of $18.82 billion, a P/E ratio of 70.41, a PEG ratio of 2.53 and a beta of 3.56.

Affirm (NASDAQ:AFRM) last posted its quarterly earnings results on Thursday, February 5th. The company reported $0.37 earnings per share for the quarter, beating the consensus estimate of $0.28 by $0.09. The business had revenue of $1.12 billion during the quarter, compared to analysts’ expectations of $1.06 billion. Affirm had a net margin of 7.60% and a return on equity of 9.16%. The business’s revenue for the quarter was up 29.6% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.23 EPS. Sell-side analysts anticipate that Affirm will post -0.18 earnings per share for the current year.

Insider Activity

In other Affirm news, CFO Robert O’hare sold 36,401 shares of the business’s stock in a transaction dated Monday, January 5th. The shares were sold at an average price of $80.00, for a total transaction of $2,912,080.00. Following the sale, the chief financial officer directly owned 1,368 shares in the company, valued at $109,440. This represents a 96.38% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Max R. Levchin sold 666,666 shares of the stock in a transaction dated Monday, January 5th. The stock was sold at an average price of $80.62, for a total transaction of $53,746,612.92. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 711,256 shares of company stock valued at $57,231,923. 11.01% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Affirm

Several hedge funds and other institutional investors have recently added to or reduced their stakes in AFRM. Royal Bank of Canada increased its position in shares of Affirm by 2.1% during the first quarter. Royal Bank of Canada now owns 193,601 shares of the company’s stock worth $8,748,000 after acquiring an additional 3,892 shares during the period. Empowered Funds LLC increased its holdings in Affirm by 90.7% during the 1st quarter. Empowered Funds LLC now owns 16,852 shares of the company’s stock worth $762,000 after purchasing an additional 8,014 shares during the period. Focus Partners Wealth purchased a new stake in Affirm during the 1st quarter worth about $243,000. Prime Capital Investment Advisors LLC acquired a new stake in Affirm in the 2nd quarter valued at about $224,000. Finally, KLP Kapitalforvaltning AS boosted its stake in shares of Affirm by 5.1% in the 2nd quarter. KLP Kapitalforvaltning AS now owns 51,600 shares of the company’s stock valued at $3,568,000 after buying an additional 2,500 shares during the period. Hedge funds and other institutional investors own 69.29% of the company’s stock.

Key Stories Impacting Affirm

Here are the key news stories impacting Affirm this week:

• Positive Sentiment: Q2 results beat consensus — Affirm reported an EPS beat and revenue growth with GMV up ~36% year-over-year, underscoring healthy transaction and merchant momentum. Affirm Q2 earnings beat (MarketBeat)
• Positive Sentiment: Customer and merchant metrics improving — active consumers and transactions per user rose, supporting repeat-use traction for Affirm’s BNPL offerings. Affirm BNPL volumes jump (PYMNTS)
• Positive Sentiment: New partnership expands reach — Affirm signed a deal with Virgin Media O2 to offer device financing in the U.K., which should broaden merchant distribution and product adoption. Affirm and Virgin Media O2 partnership (BusinessWire)
• Positive Sentiment: Some analyst support remains — Morgan Stanley recently upgraded the stock to Overweight, reflecting buy‑side interest despite mixed signals. Morgan Stanley upgrade (AmericanBankingNews)
• Neutral Sentiment: Guidance roughly in line — Affirm updated fiscal revenue targets that were generally in line with expectations, leaving less new directional information for investors. Q2 results and investor presentation (Affirm IR)
• Neutral Sentiment: Short-interest data shows no meaningful change — the reported short interest figures are effectively unchanged and do not appear to be driving today’s move.
• Negative Sentiment: Credit metrics deteriorated — Affirm increased loan-loss provisions and noted higher installment loan delinquency rates, which raised concerns about credit quality and pressured the stock. Earnings beat highlights growth and credit concerns (MarketBeat)
• Negative Sentiment: Analysts trimmed price targets — several firms (JPMorgan, Stephens, RBC) lowered targets this morning, signaling more cautious near‑term expectations and adding selling pressure. Analyst price-target changes (Benzinga / MarketScreener)

Affirm Company Profile

Affirm Holdings, Inc is a financial technology company that provides point-of-sale consumer lending and payments solutions for online and in-store purchases. Its core product is a buy-now-pay-later (BNPL) platform that enables consumers to split purchases into fixed, transparent installment loans with no hidden fees. Affirm offers a range of financing options through merchant integrations, a consumer-facing mobile app and virtual card capabilities, and tools for merchants to offer alternative payment methods at checkout.