Klarna Group (NYSE:KLAR) Lowered to "Hold" Rating by Zacks Research

Key Points

• Zacks Research downgraded Klarna Group from “strong buy” to “hold,” adding to mixed analyst sentiment. The broader consensus remains “Moderate Buy,” with an average price target of $32.11.
• Klarna shares opened at $20.24, compared with a 52-week range of $12.06 to $57.20; the company has a market capitalization of approximately $7.64 billion.
• Klarna’s latest quarter showed a narrower-than-expected loss of $0.01 per share, while revenue increased 42.7% year over year. Several institutional investors, including Renaissance Technologies and UBS, recently increased their holdings.

Klarna Group (NYSE:KLAR - Get Free Report) was downgraded by analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued on Wednesday,Zacks.com reports.

KLAR has been the subject of a number of other reports. Barclays started coverage on Klarna Group in a report on Wednesday, July 8th. They issued an "equal weight" rating and a $20.00 price target for the company. Weiss Ratings cut shares of Klarna Group from a "sell (d)" rating to a "sell (e+)" rating in a report on Monday, May 18th. Freedom Capital raised shares of Klarna Group to a "strong-buy" rating in a research report on Wednesday, June 24th. TD Cowen lifted their price target on shares of Klarna Group from $17.00 to $19.00 and gave the stock a "hold" rating in a research note on Tuesday, July 7th. Finally, Morgan Stanley upped their price objective on shares of Klarna Group from $16.00 to $18.00 and gave the company an "equal weight" rating in a research note on Monday, May 18th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, ten have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Klarna Group has an average rating of "Moderate Buy" and a consensus price target of $32.11.

Klarna Group Price Performance

Shares of NYSE KLAR opened at $20.24 on Wednesday. The business has a 50-day moving average of $18.61 and a two-hundred day moving average of $17.19. The company has a market capitalization of $7.64 billion and a price-to-earnings ratio of -38.92. Klarna Group has a 1 year low of $12.06 and a 1 year high of $57.20.

Klarna Group (NYSE:KLAR - Get Free Report) last released its quarterly earnings data on Wednesday, May 20th. The company reported ($0.01) EPS for the quarter, beating analysts' consensus estimates of ($0.13) by $0.12. Klarna Group had a negative return on equity of 7.62% and a negative net margin of 5.21%.Klarna Group's revenue was up 42.7% on a year-over-year basis. As a group, equities research analysts expect that Klarna Group will post 0.05 earnings per share for the current year.

Hedge Funds Weigh In On Klarna Group

A number of hedge funds have recently modified their holdings of the business. Sumitomo Mitsui Trust Group Inc. raised its position in Klarna Group by 53.5% during the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 812,743 shares of the company's stock worth $23,496,000 after buying an additional 283,261 shares during the last quarter. Renaissance Technologies LLC boosted its holdings in shares of Klarna Group by 173.9% in the first quarter. Renaissance Technologies LLC now owns 2,043,100 shares of the company's stock valued at $26,744,000 after acquiring an additional 1,297,200 shares in the last quarter. Baader Bank Aktiengesellschaft purchased a new stake in shares of Klarna Group in the first quarter valued at about $1,964,000. Robeco Institutional Asset Management B.V. increased its stake in shares of Klarna Group by 150.0% during the fourth quarter. Robeco Institutional Asset Management B.V. now owns 150,000 shares of the company's stock worth $4,336,000 after acquiring an additional 90,000 shares during the period. Finally, UBS Group AG raised its holdings in Klarna Group by 32.9% during the fourth quarter. UBS Group AG now owns 1,376,248 shares of the company's stock worth $39,787,000 after purchasing an additional 340,562 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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