Analysts, Options Traders Respond to Affirm's Revenue Beat

No less than five analysts hit Affirm stock with bull notes

Assistant Editor
Sep 10, 2021 at 10:27 AM
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Affirm Holdings Inc (NASDAQ:AFRM) is looking at locking in another stellar trading session, after the buy now pay later (BNPL) company released its fiscal fourth-quarter earnings report. Though Affirm's losses for the quarter were wider than Wall Street anticipated, revenue soared above expectations thanks to more than quintupling its active merchant numbers. In response, AFRM was last seen up 16.7% to trade at $107.43.

Analysts were quick to respond, with no less than five brokerages lifting their target prices. The largest bull note rolled in from Truist Securities, who raised its target price to $150 from $120. Coming into today, analysts were mixed on their stance toward Affirm stock, with six rating the security a "buy" or better, while three said "hold" or worse. 

Options traders are taking notice, too. So far, 101,000 calls and 29,000 puts have exchanged hands, which is 18 times the intraday average. The most popular by far is the September 110 call, followed by the September 115 call, with new positions being opened at both. 

Affirm stock is now pacing for its highest close since late February, with a 57.7% lead over the past month. The equity is also on track to log its best day since its 46.7% bull gap in late August. 

 

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