Keith Rabois, a director of Affirm Holdings , Inc. (NASDAQ:AFRM), has sold a total of 9,276 shares of the company's Class A Common Stock, according to a recent filing with the Securities and Exchange Commission. The transaction, which took place on July 1st, netted Rabois over $277,000.
The sale was conducted at a weighted average price of $29.89 per share, with prices ranging from $29.50 to $30.32. This information was disclosed in a footnote attached to the filing, which also stated that the sales were carried out under a pre-arranged Rule 10b5-1 trading plan. Such plans are commonly used by company insiders to sell shares over a predetermined period of time to avoid accusations of trading on non-public information.
Following the transaction, Rabois still owns a substantial number of shares in Affirm Holdings, specifically 73,623 shares of Class A Common Stock, maintaining a significant stake in the company.
Affirm Holdings, based in San Francisco, California, operates in the personal credit institutions sector and is known for its innovative financial services, including providing installment loans for consumers to use at the point of sale to finance a purchase.
Investors often keep a close eye on insider transactions as they can provide insights into an insider's view of the company's current valuation and future prospects. However, such transactions are also influenced by personal financial management and do not necessarily indicate a lack of confidence in the company's future by the insider.
The details of the transaction, including the number of shares sold at each separate price within the range, are available upon request for interested parties such as the Commission staff, the issuer, or any security holder of the issuer.
In other recent news, Affirm Holdings Inc. has made significant strides in its financial management. The company expanded its credit line from $205 million to $330 million and extended its maturity date to June 26, 2027, demonstrating its commitment to long-term growth. In addition, Affirm Holdings recently experienced a cybersecurity incident at Evolve Bank & Trust, though the company anticipates no material impact on its financial condition or operations.
Analyst reviews have been mixed for Affirm Holdings. Goldman Sachs (NYSE:GS) upgraded the company to a 'buy' rating, while CFRA maintained a 'sell' rating, projecting future revenue forecasts for the fiscal years 2024 to 2026 at $2.3 billion, $2.7 billion, and $3.2 billion respectively. BTIG initiated coverage with a neutral rating, predicting the company's Gross Merchandise Volume (GMV) to grow at a rate of 25-35% year-over-year.
Furthermore, the U.S. Consumer Financial Protection Bureau (CFPB) extended certain consumer protection rules typically applied to credit cards to the Buy Now Pay Later (BNPL) industry, impacting companies like Affirm. These recent developments underline the evolving financial landscape within which Affirm operates.
InvestingPro Insights
As Affirm Holdings (NASDAQ:AFRM) continues to navigate the competitive landscape of personal credit institutions, real-time data from InvestingPro provides a snapshot of the company's financial health and market performance. Affirm's market capitalization stands at approximately $9.1 billion, reflecting the scale of the company within the sector. Despite a challenging period, the company has shown impressive revenue growth, with a 40.05% increase over the last twelve months as of Q3 2024. This growth is further highlighted by a quarterly revenue jump of 51.23% in Q3 2024, showcasing Affirm's ability to expand its revenue streams effectively.
However, the company's current P/E ratio is -13.26, and analysts on InvestingPro do not anticipate the company will be profitable this year. This sentiment is echoed by the company's performance over the last year, with a significant price return of 91.65%, yet a more recent 6-month price total return showing a steep decline of -36.95%. This volatility is captured by one of the InvestingPro Tips, which notes that the stock has experienced a considerable hit over the last week and generally trades with high price volatility. Moreover, another InvestingPro Tip indicates that 3 analysts have revised their earnings upwards for the upcoming period, suggesting a potential shift in market sentiment or expectations for Affirm's future earnings.
For investors considering Affirm Holdings as part of their portfolio, the InvestingPro platform offers additional insights. There are currently 9 additional InvestingPro Tips available, which can be accessed by visiting: https://www.investing.com/pro/AFRM. To enhance your investing strategy and gain access to these valuable tips, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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