Mitsubishi UFJ Trust Invests $7.9 Million in Affirm Holdings

Mitsubishi UFJ Trust & Banking Corp has acquired a significant stake in Affirm Holdings, Inc., investing approximately $7.92 million in the third quarter of 2023. The investment, detailed in a recent filing with the Securities and Exchange Commission, involved the purchase of 108,390 shares of the company. This move reflects growing interest from institutional investors in the financial technology sector.

Several other hedge funds have also modified their positions in Affirm. Notably, Huntington National Bank increased its holdings by a remarkable 634.0% during the second quarter, now owning 389 shares valued at around $27,000 after acquiring an additional 336 shares. Similarly, Mather Group LLC purchased a new stake in the company worth about $29,000 in the same quarter.

Additionally, SouthState Corp raised its stake in Affirm by 190.5%, now holding 427 shares valued at approximately $30,000. Blume Capital Management Inc. saw a dramatic increase of 468.8% in its holdings, acquiring 455 shares valued at $31,000. Finally, Quent Capital LLC also entered the market with a new investment valued at around $43,000. Collectively, institutional investors and hedge funds now own 69.29% of Affirm’s stock.

Insider Transactions and Stock Performance

In related news, Max R. Levchin, CEO of Affirm, sold 666,666 shares on January 5, 2023, at an average price of $80.62, totaling approximately $53.75 million. This transaction was disclosed in a legal filing with the SEC. Furthermore, Robert O’Hare, the Chief Financial Officer, sold 36,401 shares on the same day for an average price of $80.00, amounting to $2.91 million. Following these sales, O’Hare now retains 1,368 shares, valued at $109,440, indicating a 96.38% decrease in his position. Over the past 90 days, insiders have sold a total of 711,256 shares valued at approximately $57.23 million. Corporate insiders hold 11.01% of the company’s stock.

Affirm’s stock performance has garnered attention following its most recent earnings announcement on November 6, 2023. The company reported earnings per share (EPS) of $0.23, exceeding analysts’ expectations of $0.11 by $0.12. Affirm’s return on equity was noted at 7.75%, with a net margin of 6.74%. The firm’s revenue for the quarter reached $933.34 million, surpassing the consensus estimate of $881.83 million and reflecting a year-over-year increase of 33.6%. Analysts predict that Affirm Holdings, Inc. will post an EPS of -0.18 for the current fiscal year.

Analyst Ratings and Future Outlook

Market analysts have been actively evaluating Affirm’s stock. On November 19, 2023, Truist Financial lowered its target price from $90.00 to $85.00 while maintaining a “buy” rating. Evercore ISI reaffirmed an “outperform” rating on the stock on December 16, 2023. Meanwhile, Royal Bank of Canada adjusted its target price from $97.00 to $87.00 and assigned a “sector perform” rating. BTIG Research reaffirmed a “neutral” rating, while Weiss Ratings assigned a “hold (c-)” rating.

Overall, three analysts have rated Affirm with a Strong Buy designation, eighteen have given it a Buy rating, and nine have assigned a Hold rating. According to MarketBeat, the average rating for the company is “Moderate Buy,” with a consensus price target of $89.44.

Affirm Holdings, Inc. operates in the financial technology space, specializing in point-of-sale consumer lending and payments solutions. Its primary offering is a buy-now-pay-later (BNPL) platform that allows consumers to manage purchases through fixed, transparent installment loans, free from hidden fees. The company continues to expand its financing options through merchant integrations, a consumer-facing mobile app, and virtual card capabilities, demonstrating its commitment to providing innovative payment solutions.