In a recent transaction, Noel Bertram Watson, a director of Affirm Holdings , Inc. (NASDAQ:AFRM), sold 2,500 shares of the company’s Class A common stock. The sale was executed at a price of $42.44 per share, amounting to a total value of $106,100.
The transaction took place on September 13, 2024, and was reported in a Form 4 filing with the Securities and Exchange Commission on September 16, 2024. Following this sale, Watson’s remaining holdings in Affirm Holdings consist of 40,982 shares of the Class A common stock.
It’s worth noting that the reported sale was conducted under a Rule 10b5-1 trading plan, which Watson had adopted on June 14, 2024. Rule 10b5-1 trading plans allow company insiders to sell a predetermined number of shares at a predetermined time, providing a defense against potential accusations of trading on inside information.
Affirm Holdings, based in San Francisco, California, operates in the personal credit institutions sector and is known for its buy now, pay later services. The company’s stock is traded under the ticker symbol AFRM on the NASDAQ exchange.
In other recent news, Affirm Holdings Inc. has been in the spotlight following robust financial performance, surpassing market expectations. The company’s commitment to achieving GAAP profitability by the fourth quarter of 2025 has been positively acknowledged by major analyst firms. Affirm’s strategy involves maintaining a 30% growth in Gross Merchandise Volume (GMV) while moderating operating expenses growth.
The company has also announced leadership changes, with CFO Michael Linford expanding his role to Chief Operating Officer and Rob O’Hare stepping in as the new CFO. Affirm is also focusing on driving growth by increasing annual spend per Affirm card and active cards, leveraging its machine learning capabilities for underwriting, and maintaining a strong sales team for merchant acquisition.
Moreover, Affirm has partnered with Apple (NASDAQ:AAPL) Pay, allowing U.S. customers using iOS 18 and iPadOS 18 or later versions to access Affirm’s pay-over-time options when checking out with Apple Pay. This integration was positively received by Barclays, which reiterated its Overweight rating on Affirm’s stock.
Analysts from Goldman Sachs and JPMorgan maintained a Buy and Overweight rating respectively, while Needham maintained a Hold rating. These ratings reflect the analysts’ confidence in Affirm’s strategy and recent positive guidance.
InvestingPro Insights
Following the recent insider sale by director Noel Bertram Watson, Affirm Holdings (NASDAQ:AFRM) continues to capture investor attention. According to InvestingPro data, Affirm boasts a significant market capitalization of $13.75 billion, reflecting the substantial size of the company within the personal credit institutions sector. The company’s stock, known for its high price volatility, has seen a strong return over the last month, with a 54.69% increase in its price total return.
InvestingPro Tips highlight that analysts have recently revised their earnings upwards for the upcoming period, suggesting a potential positive outlook for the company’s financial performance. Additionally, despite not being profitable over the last twelve months, Affirm has demonstrated robust revenue growth, with a 46.29% increase in revenue in the last twelve months as of Q4 2024. This growth could be indicative of the company’s expanding market presence and adoption of its buy now, pay later services.
Moreover, Affirm’s liquid assets exceed its short-term obligations, which may provide some financial flexibility and stability. For readers seeking more comprehensive analysis, there are additional InvestingPro Tips available, which can be found at https://www.investing.com/pro/AFRM, offering deeper insights into Affirm’s financial health and stock performance.
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