Klarna Group (NYSE:KLAR) Now Covered by Analysts at Loop Capital

Key Points

• Loop Capital initiated coverage of Klarna Group with a “hold” rating and an $18 price target, implying approximately 28% upside from the prior close.
• Analyst sentiment remains cautious: Klarna has a consensus “hold” rating, with 15 holds and an average price target of $29.05, while several firms recently lowered their targets.
• Klarna shares fell 1.5% to $14.05, despite the company exceeding quarterly earnings and revenue estimates; revenue increased 26.6% year over year. CEO Sebastian Siemiatkowski also bought nearly $10 million of stock.

Equities research analysts at Loop Capital assumed coverage on shares of Klarna Group (NYSE:KLAR - Get Free Report) in a research note issued on Wednesday, Briefing.com reports. The firm set a "hold" rating and a $18.00 price target on the stock. Loop Capital's price objective would indicate a potential upside of 28.09% from the stock's previous close.

A number of other analysts have also recently weighed in on KLAR. Barclays dropped their target price on shares of Klarna Group from $20.00 to $16.00 and set an "equal weight" rating on the stock in a report on Wednesday, August 19th. BMO Capital Markets dropped their price objective on shares of Klarna Group from $19.00 to $15.00 and set a "market perform" rating on the stock in a research note on Wednesday, August 19th. Freedom Capital upgraded Klarna Group to a "strong-buy" rating in a research note on Wednesday, June 24th. JPMorgan Chase & Co. reiterated a "neutral" rating and set a $18.00 price target (down from $22.00) on shares of Klarna Group in a research report on Wednesday, August 19th. Finally, Wells Fargo & Company cut their price target on Klarna Group from $26.00 to $21.00 and set an "overweight" rating on the stock in a report on Wednesday, August 19th. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, fifteen have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $29.05.

Klarna Group Trading Down 1.5%

NYSE KLAR traded down $0.21 during mid-day trading on Wednesday, reaching $14.05. 885,329 shares of the company's stock traded hands, compared to its average volume of 5,856,692. Klarna Group has a 1-year low of $12.06 and a 1-year high of $57.20. The company has a fifty day simple moving average of $17.77 and a 200-day simple moving average of $16.08. The company has a market cap of $5.31 billion and a price-to-earnings ratio of -37.70.

Klarna Group (NYSE:KLAR - Get Free Report) last announced its earnings results on Friday, August 14th. The company reported $0.01 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.06) by $0.07. The company had revenue of $1.04 billion for the quarter, compared to analyst estimates of $992.56 million. Klarna Group had a negative return on equity of 5.39% and a negative net margin of 3.54%.Klarna Group's revenue was up 26.6% on a year-over-year basis. Equities research analysts forecast that Klarna Group will post -0.01 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CEO Sebastian Siemiatkowski purchased 692,506 shares of the company's stock in a transaction on Wednesday, August 26th. The shares were bought at an average price of $14.37 per share, for a total transaction of $9,951,311.22. Following the completion of the purchase, the chief executive officer owned 25,344,322 shares of the company's stock, valued at $364,197,907.14. This trade represents a 2.81% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website.

Hedge Funds Weigh In On Klarna Group

Several hedge funds and other institutional investors have recently made changes to their positions in KLAR. Renaissance Capital LLC boosted its stake in Klarna Group by 532.5% during the second quarter. Renaissance Capital LLC now owns 103,656 shares of the company's stock valued at $2,098,000 after buying an additional 87,267 shares in the last quarter. Renaissance Technologies LLC raised its position in Klarna Group by 173.9% in the first quarter. Renaissance Technologies LLC now owns 2,043,100 shares of the company's stock worth $26,744,000 after acquiring an additional 1,297,200 shares in the last quarter. Baader Bank Aktiengesellschaft acquired a new stake in Klarna Group in the 1st quarter valued at about $1,964,000. Sumitomo Mitsui Trust Group Inc. boosted its position in shares of Klarna Group by 47.5% during the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,198,554 shares of the company's stock valued at $15,689,000 after purchasing an additional 385,811 shares in the last quarter. Finally, Vontobel Holding Ltd. boosted its position in shares of Klarna Group by 298.0% during the 2nd quarter. Vontobel Holding Ltd. now owns 218,045 shares of the company's stock valued at $4,413,000 after purchasing an additional 163,261 shares in the last quarter.

Klarna Group Company Profile

Klarna Group is a global payments provider specializing in “buy now, pay later” (BNPL) solutions for online and in-store shoppers. The company partners with merchants to offer flexible payment options, including interest-free installments and deferred payments, aiming to enhance conversion rates and customer loyalty. Klarna’s platform integrates risk assessment, fraud prevention, and a one-click checkout experience to streamline transactions for both retailers and consumers.

Through its digital wallet and mobile app, Klarna enables users to manage purchases, track spending and access exclusive shopping offers from partner merchants.

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