SAN FRANCISCO—Robert O'Hare, the Chief Financial Officer of Affirm Holdings , Inc. (NASDAQ:AFRM), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, O'Hare sold 100,938 shares of Class A Common Stock on November 11, 2024, at a price of $55 per share, resulting in a total transaction value of approximately $5.55 million.
The sale was part of a series of transactions that included the exercise of stock options. O'Hare exercised stock options to acquire a total of 100,938 shares at prices ranging from $17.19 to $23.35 per share. These transactions were executed under a Rule 10b5-1 trading plan, which had been adopted earlier in the year on June 14, 2024.
Following these transactions, O'Hare no longer holds any shares of Affirm Holdings directly. The transactions reflect strategic financial planning by the executive, as part of his ongoing management of personal investments.
In other recent news, Visa (NYSE:V) and Affirm have launched a new payment feature in the United States, named "Flexible Credential," which combines debit transactions and buy now, pay later (BNPL) purchases in one card. This development comes as a response to the growing consumer demand for flexible payment methods. The feature is also set to be introduced in the United Arab Emirates via a partnership with Liv Bank, with further expansion plans for Europe in the pipeline.
In parallel, Affirm Holdings has reported a strong first quarter in a recent earnings call, with an optimistic outlook for the upcoming holiday season. The company's revenue has improved due to interest income, capital market benefits, and merchant fees. Affirm is also preparing to launch in the UK market to meet the demand for long-term payment products.
These recent developments reflect the evolving financial services landscape, where fintechs and established players collaborate to meet changing consumer needs. They also demonstrate Affirm's strategic growth initiatives, with a focus on solid credit performance and expansion opportunities.
InvestingPro Insights
The recent stock sale by Affirm Holdings' CFO Robert O'Hare comes at a time when the company's stock has shown remarkable performance. According to InvestingPro data, Affirm has experienced a significant return of 139.6% over the last year, with a particularly strong 108.84% return in the past three months. This upward trajectory aligns with the timing of O'Hare's decision to sell shares, potentially capitalizing on the stock's recent gains.
InvestingPro Tips highlight that Affirm's stock "generally trades with high price volatility" and that "stock price movements are quite volatile." This volatility is evident in the substantial returns over various time frames, including a 16.44% increase in the past month alone. The company's current market capitalization stands at $17.15 billion, reflecting its significant presence in the fintech sector.
Despite the strong stock performance, it's worth noting that Affirm is not currently profitable, with a negative P/E ratio of -38.46. An InvestingPro Tip indicates that "analysts do not anticipate the company will be profitable this year." This insight provides context to O'Hare's decision to exercise options and sell shares, possibly taking advantage of the stock's current valuation.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Affirm Holdings, providing a deeper understanding of the company's financial position and market dynamics.
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