Klarna Group (NYSE:KLAR) Stock Bumped Down to Sell by Wall Street Zen

Key Points

• Wall Street Zen downgraded Klarna Group from “hold” to “sell,” although the broader analyst consensus remains “hold,” with six buy ratings, eleven holds, and one sell rating.
• Klarna shares opened at $12.85, well below the consensus price target of $22.60 and down from a 52-week high of $40.05.
• The company exceeded quarterly earnings and revenue expectations, reporting $0.01 in earnings per share and $1.04 billion in revenue, while revenue rose 26.6% year over year; CEO Sebastian Siemiatkowski also bought nearly $10 million of shares.

Klarna Group (NYSE:KLAR - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Saturday, Wall Street Zen reports.

KLAR has been the topic of a number of other reports. The Goldman Sachs Group raised their price objective on shares of Klarna Group from $21.00 to $25.00 and gave the stock a "buy" rating in a report on Thursday, July 9th. TD Cowen reduced their price target on Klarna Group from $18.00 to $16.00 and set a "hold" rating for the company in a research report on Tuesday, October 6th. Deutsche Bank Aktiengesellschaft upped their price objective on shares of Klarna Group from $18.00 to $27.00 and gave the company a "buy" rating in a research note on Thursday, July 2nd. Loop Capital initiated coverage on Klarna Group in a research report on Wednesday, September 9th. They set a "hold" rating and a $18.00 price objective on the stock. Finally, Keefe, Bruyette & Woods cut their price objective on shares of Klarna Group from $26.00 to $21.00 and set an "outperform" rating on the stock in a research report on Friday, August 21st. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $22.60.

Klarna Group Stock Performance

Shares of NYSE:KLAR opened at $12.85 on Friday. The firm's 50 day moving average is $13.78 and its two-hundred day moving average is $15.97. Klarna Group has a 52 week low of $12.06 and a 52 week high of $40.05.

Klarna Group (NYSE:KLAR - Get Free Report) last posted its quarterly earnings data on Friday, August 14th. The company reported $0.01 earnings per share for the quarter, topping the consensus estimate of ($0.06) by $0.07. The firm had revenue of $1.04 billion for the quarter, compared to analysts' expectations of $992.56 million. Klarna Group had a negative net margin of 3.54% and a negative return on equity of 5.39%. Klarna Group's revenue was up 26.6% on a year-over-year basis. On average, sell-side analysts predict that Klarna Group will post -0.01 earnings per share for the current fiscal year.

Insider Activity

In related news, CEO Sebastian Siemiatkowski bought 692,506 shares of the company's stock in a transaction dated Wednesday, August 26th. The stock was purchased at an average price of $14.37 per share, for a total transaction of $9,951,311.22. Following the acquisition, the chief executive officer owned 25,344,322 shares in the company, 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 document filed with the SEC, which is available at this hyperlink.

Hedge Funds Weigh In On Klarna Group

Several hedge funds have recently bought and sold shares of KLAR. BlackRock Inc. increased its holdings in Klarna Group by 89.6% during the second quarter. BlackRock Inc. now owns 5,698,353 shares of the company's stock valued at $115,335,000 after buying an additional 2,693,374 shares during the period. Renaissance Technologies LLC boosted its holdings 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. Pictet Asset Management Holding SA acquired a new stake in shares of Klarna Group during the first quarter worth $18,872,000. Amova Asset Management Americas Inc. increased its holdings in shares of Klarna Group by 57.8% in the first quarter. Amova Asset Management Americas Inc. now owns 1,198,554 shares of the company's stock valued at $15,701,000 after purchasing an additional 438,930 shares during the period. Finally, Sumitomo Mitsui Trust Group Inc. increased its holdings in Klarna Group by 47.5% in the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,198,554 shares of the company's stock worth $15,689,000 after buying an additional 385,811 shares during the period.

About Klarna Group

Klarna Group is a global financial technology company that provides digital payment and consumer-finance services. Its platform enables shoppers to pay immediately, later, or over time, while giving merchants tools to process payments, manage checkout experiences, and engage customers.

The company's products include buy now, pay later options, installment plans, direct payments, digital checkout services, and the Klarna Card. Klarna also operates a consumer shopping platform that allows users to discover products, compare offers, track purchases, and manage payments.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.