Sezzle (NASDAQ:SEZL) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Sezzle from “buy” to “hold,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $145.67.
• Sezzle shares opened at $134.85, with a market capitalization of approximately $4.56 billion; the stock has traded between $49.50 and $195.71 over the past year.
• The company exceeded quarterly expectations, reporting $1.13 in earnings per share versus a $1.03 estimate and revenue of $149.68 million versus $135.09 million. Insider ownership stands at 43.90%, with one director selling shares and another purchasing shares recently.

Sezzle (NASDAQ:SEZL - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued to investors on Sunday, Wall Street Zen reports.

Other research analysts have also recently issued reports about the stock. Needham & Company LLC reissued a "buy" rating and set a $172.00 price objective on shares of Sezzle in a report on Thursday, August 20th. B. Riley Financial reaffirmed a "buy" rating on shares of Sezzle in a research report on Friday, August 7th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Sezzle in a research note on Tuesday, August 4th. TD Cowen decreased their target price on shares of Sezzle from $165.00 to $160.00 and set a "buy" rating for the company in a research note on Tuesday, October 6th. Finally, Keefe, Bruyette & Woods lowered their price target on Sezzle from $190.00 to $155.00 and set a "market perform" rating on the stock in a report on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $145.67.

Sezzle Price Performance

NASDAQ SEZL opened at $134.85 on Friday. Sezzle has a one year low of $49.50 and a one year high of $195.71. The stock has a 50-day moving average of $120.75 and a 200 day moving average of $108.51. The company has a market capitalization of $4.56 billion, a price-to-earnings ratio of 29.32 and a beta of 6.71. The company has a debt-to-equity ratio of 0.52, a quick ratio of 4.02 and a current ratio of 4.02.

Sezzle (NASDAQ:SEZL - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported $1.13 earnings per share for the quarter, topping analysts' consensus estimates of $1.03 by $0.10. The business had revenue of $149.68 million during the quarter, compared to analyst estimates of $135.09 million. Sezzle had a return on equity of 83.48% and a net margin of 30.35%. Sezzle has set its FY 2026 guidance at 5.250-5.250 EPS. On average, sell-side analysts forecast that Sezzle will post 5.24 EPS for the current year.

Insider Activity at Sezzle

In other news, Director Kyle Brehm sold 1,000 shares of the stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $125.92, for a total value of $125,920.00. Following the transaction, the director owned 23,853 shares in the company, valued at $3,003,569.76. This represents a 4.02% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Bryan Hunt acquired 250 shares of the company's stock in a transaction that occurred on Friday, September 18th. The stock was acquired at an average cost of $115.86 per share, for a total transaction of $28,965.00. Following the acquisition, the director owned 3,985 shares of the company's stock, valued at $461,702.10. The trade was a 6.69% increase in their position. The disclosure for this purchase is available in the SEC filing. 43.90% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Sezzle

A number of hedge funds have recently modified their holdings of SEZL. BlackRock Inc. acquired a new stake in Sezzle during the second quarter worth about $436,497,000. Dimensional Fund Advisors LP lifted its holdings in Sezzle by 41.6% in the first quarter. Dimensional Fund Advisors LP now owns 458,222 shares of the company's stock valued at $28,996,000 after acquiring an additional 134,714 shares during the period. Bank of America Corp DE lifted its holdings in Sezzle by 296.1% in the first quarter. Bank of America Corp DE now owns 326,063 shares of the company's stock valued at $20,637,000 after acquiring an additional 243,747 shares during the period. Principal Financial Group Inc. lifted its holdings in Sezzle by 41.6% in the first quarter. Principal Financial Group Inc. now owns 247,407 shares of the company's stock valued at $15,658,000 after acquiring an additional 72,626 shares during the period. Finally, Jupiter Topco LLC purchased a new stake in Sezzle in the 2nd quarter worth approximately $19,433,000. 2.02% of the stock is currently owned by institutional investors.

Sezzle Company Profile

Sezzle Inc NASDAQ: SEZL is a financial technology company that provides buy now, pay later solutions. Its platform enables consumers to split eligible purchases into installments, generally at the time of checkout, while giving merchants payment and customer-engagement tools designed to support e-commerce sales.

The company offers installment payment services through its consumer app and merchant integrations, as well as products such as Sezzle Virtual Card and Sezzle Up. Sezzle Up is designed to provide eligible users with credit-building opportunities, while the company's merchant platform supports checkout integration, transaction management and consumer financing.

Sezzle was founded in 2016 and is headquartered in Minneapolis, Minnesota.

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