SAN FRANCISCO—Libor Michalek, President of Affirm Holdings Inc. (NASDAQ:AFRM), executed a series of stock transactions, according to a recent SEC filing. On November 18 and 19, Michalek sold a total of 111,048 shares of the company's Class A common stock, with sales prices ranging from $62 to $64 per share. These transactions amounted to approximately $6.9 million.
In addition to the sales, Michalek acquired 111,048 shares through stock option exercises at a price of $2.04 per share. These transactions were part of a pre-established trading plan under Rule 10b5-1, adopted on December 13, 2023. Following these transactions, Michalek holds 159,449 shares directly.
In other recent news, Affirm Holdings Inc. reported strong first-quarter financial results, fueling investor interest and prompting Mizuho (NYSE:MFG) Securities to increase its price target for the company's stock from $65 to $69, while maintaining an Outperform rating. Key areas of focus include the reported rise in F2Q Return on Loan Capital (RLTC) as a percentage of Gross Merchandise Volume (GMV), the company's expansion efforts in the United Kingdom (TADAWUL:4280), and the potential long-term benefits of the Affirm Card.
Adjusted operating income margins are projected to be between 21% and 23%, with anticipated Real Lender Total (EPA:TTEF) Cost (RLTC) margins around 3.8% for Q2. The company is also preparing for a UK market launch, aiming to meet the demand for long-term payment products.
In a collaborative move, Visa (NYSE:V) has partnered with Affirm to introduce a new payment feature in the United States called "Flexible Credential." This feature allows users to access multiple accounts and funding sources with one card, a service that 51% of card users showed interest in, according to a Visa study.
These recent developments reflect the company's strategic maneuvers and financial outcomes, which are shaping a positive outlook for Affirm's future growth and profitability. It's worth noting these updates as part of the firm's ongoing journey in the competitive financial technology landscape.
InvestingPro Insights
The recent stock transactions by Affirm Holdings Inc.'s President, Libor Michalek, come at a time when the company's stock is showing significant momentum. According to InvestingPro data, Affirm has seen a remarkable 148.19% price total return over the past year, with a particularly strong 115.74% return in the last three months alone. This upward trend is further emphasized by the stock trading near its 52-week high, with the current price at 97.88% of that peak.
InvestingPro Tips highlight that Affirm's stock generally trades with high price volatility, which could explain the timing of Michalek's transactions. The company's market capitalization stands at $19.84 billion, reflecting investor confidence despite the fact that Affirm is not currently profitable. An InvestingPro Tip notes that analysts do not anticipate the company will be profitable this year, aligning with the reported operating income of -$533.17 million for the last twelve months.
Despite the lack of profitability, Affirm's revenue growth remains strong, with a 46.55% increase over the last twelve months, reaching $2.52 billion. This growth trajectory, coupled with the stock's recent performance, may be factors in the market's positive sentiment towards the company.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Affirm, providing deeper insights into the company's financial health and market position.
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