TD Cowen Cuts Klarna Group (NYSE:KLAR) Price Target to $16.00

Key Points

• TD Cowen lowered Klarna Group’s price target from $18 to $16 and maintained a “Hold” rating, implying about 20.6% upside from the prior close.
• Analyst sentiment remains mixed but leans cautious: Klarna has an average “Hold” rating and a consensus price target of $22.60, with 11 holds, six buys, one strong buy, and one sell.
• Klarna reported better-than-expected quarterly results, including $0.01 EPS versus a $0.06 loss estimate and $1.04 billion in revenue, up 26.6% year over year; CEO Sebastian Siemiatkowski also purchased nearly $10 million of shares.

Klarna Group (NYSE:KLAR - Get Free Report) had its price objective cut by stock analysts at TD Cowen from $18.00 to $16.00 in a report released on Tuesday, Benzinga reports. The brokerage presently has a "hold" rating on the stock. TD Cowen's price objective suggests a potential upside of 20.59% from the company's previous close.

A number of other research analysts have also issued reports on KLAR. Keefe, Bruyette & Woods cut their price target on shares of Klarna Group from $26.00 to $21.00 and set an "outperform" rating on the stock in a research note on Friday, August 21st. Scotiabank started coverage on shares of Klarna Group in a research note on Wednesday, September 2nd. They set a "sector perform" rating and a $16.00 price objective for the company. Wall Street Zen raised Klarna Group from a "sell" rating to a "hold" rating in a research report on Monday. Freedom Capital upgraded Klarna Group to a "strong-buy" rating in a research note on Wednesday, June 24th. Finally, Wolfe Research cut Klarna Group from an "outperform" rating to a "peer perform" rating in a research report on Tuesday, August 25th. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Klarna Group presently has an average rating of "Hold" and an average target price of $22.60.

Klarna Group Price Performance

NYSE KLAR traded up $0.18 during trading on Tuesday, hitting $13.27. The company's stock had a trading volume of 970,988 shares, compared to its average volume of 5,819,408. Klarna Group has a fifty-two week low of $12.06 and a fifty-two week high of $44.75. The company has a market cap of $5.01 billion and a PE ratio of -35.96. The business's 50 day simple moving average is $15.56 and its 200-day simple moving average is $15.96.

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 (EPS) for the quarter, beating the consensus estimate of ($0.06) by $0.07. The firm had revenue of $1.04 billion for the quarter, compared to the consensus estimate of $992.56 million. Klarna Group had a negative net margin of 3.54% and a negative return on equity of 5.39%. The business's revenue for the quarter was up 26.6% on a year-over-year basis. Analysts expect that Klarna Group will post -0.01 EPS for the current fiscal year.

Insider Transactions at Klarna Group

In other Klarna Group news, CEO Sebastian Siemiatkowski acquired 692,506 shares of the firm's stock in a transaction on Wednesday, August 26th. The stock was acquired at an average cost of $14.37 per share, for a total transaction of $9,951,311.22. Following the purchase, the chief executive officer owned 25,344,322 shares in the company, valued at approximately $364,197,907.14. The trade was a 2.81% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink.

Institutional Trading of Klarna Group

Hedge funds and other institutional investors have recently made changes to their positions in the business. Renaissance Capital LLC lifted its position 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 purchasing an additional 87,267 shares during the period. State Street Corp grew its position in Klarna Group by 1,428.3% during the 2nd quarter. State Street Corp now owns 305,742 shares of the company's stock worth $6,188,000 after purchasing an additional 285,736 shares during the period. Renaissance Technologies LLC raised its stake in shares of Klarna Group by 173.9% during the 1st quarter. Renaissance Technologies LLC now owns 2,043,100 shares of the company's stock valued at $26,744,000 after buying an additional 1,297,200 shares during the last quarter. Baader Bank Aktiengesellschaft acquired a new position in shares of Klarna Group in the 1st quarter valued at about $1,964,000. Finally, Sumitomo Mitsui Trust Group Inc. lifted its holdings in shares of 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 valued at $15,689,000 after buying an additional 385,811 shares during the period.

Klarna Group Company Profile

Klarna Group plc is a financial technology company that provides digital payment and shopping services to consumers and merchants. Its offerings include buy now, pay later options, installment plans, and other flexible payment methods designed to give consumers greater choice at checkout.

The company also operates a shopping platform that helps consumers discover products, compare prices, track orders, and manage purchases. For merchants, Klarna provides payment acceptance, checkout solutions, customer acquisition tools, and related services intended to support online and in-store commerce.

Klarna was founded in Stockholm, Sweden, in 2005 by Sebastian Siemiatkowski, Niklas Adalberth, and Victor Jacobsson.

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.