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Affirm Holdings Inc. (NASDAQ:AFRM): An Opportunity for Fundamental Investors?

Affirm Holdings Inc. (NASDAQ:AFRM) Relative Strength Index (RSI) is 61.63, with weekly volatility at 6.64% and ATR at 4.30. The AFRM stock’s 52-week price range has touched low of $46.50 and a $146.90 high. Intraday shares traded counted 3.73 million, which was -39.08% lower than its 30-day average trading volume of 2.68M. Its shares traded higher over the last trading session, gaining 1.41% on 06/14/21. The shares fell to a low of $67.60 before closing at $68.94. AFRM’s previous close was $67.98 while the outstanding shares total 233.31M.

Investors have identified the Information Technology Services company Affirm Holdings Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $17.12 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Affirm Holdings Inc. (AFRM) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 1.89 billion total, with 1.57 billion as their total liabilities.

AFRM were able to record -185.63 million as free cash flow during the 08/12/2021 quarter of the year, this saw their quarterly net cash flow reduce by 1.48 billion. In cash movements, the company had a total of -173.22 million as operating cash flow.

Potential earnings growth for Affirm Holdings Inc. (AFRM)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/12/2021 quarter of the year, Affirm Holdings Inc. recorded a total of 230.66 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 40.05% coming in sequential stages and their sales for the 08/12/2021 quarter increasing by 11.54%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 134.73 million trying to sell their products during the last quarter, with the result yielding a gross income of 95.94 million. This allows shareholders to hold on to 233.31M with the recently reported earning now reading -1.06 cents per share. This is a figure that compared to analyst’s prediction for their 08/12/2021 (-0.72 cents a share).

Having a look at the company’s valuation, the company is expected to record -0.88 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on AFRM sounds very interesting.

Is the stock of AFRM attractive?

In related news, Vice President, Controller, Jiyane Siphelele sold 12,137 shares of the company’s stock in a transaction that recorded on Mar 15. The sale was performed at an average price of 81.18, for a total value of 985,293. As the sale deal closes, the Chief Financial Officer, Linford Michael now sold 25,000 shares of the company’s stock, valued at 2,041,830. Also, President, Technology, Michalek Libor sold 263,386 shares of the company’s stock in a deal that was recorded on Mar 03. The shares were price at an average price of 89.89 per share, with a total market value of 23,674,721. Following this completion of acquisition, the Chief Legal Officer, Caro del Castillo Sharda now holds 25,333 shares of the company’s stock, valued at 2,310,428. In the last 6 months, insiders have changed their ownership in shares of company stock by 7.70%.

5 out of 9 analysts covering the stock have rated it a Buy, while 4 have maintained a Hold recommendation on Affirm Holdings Inc.. 0 analysts has assigned a Sell rating on the AFRM stock. The 12-month mean consensus price target for the company’s shares has been set at $77.18.

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