BTIG analyst Vincent Caintic has maintained their neutral stance on AFRM stock, giving a Hold rating on November 19.
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Vincent Caintic has given his Hold rating due to a combination of factors influencing Affirm Holdings. One of the primary concerns is the observed increase in early-stage delinquencies within the younger vintages of their loan portfolio. Specifically, the 2025-X1 and 2024-X2 vintages have shown a notable rise in delinquencies compared to older vintages, suggesting potential issues with underwriting standards.
Despite these concerns, Caintic acknowledges that Affirm might be intentionally loosening its underwriting criteria to boost Gross Merchandise Volume (GMV) by approving more applications. This strategy could potentially offset the impact of higher delinquencies by increasing volume, although it would also lead to higher losses and lower margins. The current macroeconomic environment adds an additional layer of caution, as higher delinquencies could pose risks. Therefore, while there is potential for growth, the uncertainties surrounding delinquency trends warrant a Hold rating.
In another report released on November 19, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $71.00 price target.
Based on the recent corporate insider activity of 115 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AFRM in relation to earlier this year.