Klarna Group (NYSE:KLAR) Shares Down 4.6% - Should You Sell?

Key Points

• Klarna shares fell 4.6% on Wednesday to about $12.93 with 4.26M shares traded (roughly 30% below the average), leaving the stock under its 50‑day moving average of $18.98; market cap is ~$4.88B and the company shows a negative PE of -16.79.
• Multiple banks recently cut price targets (Wells Fargo to $32, JPMorgan to $20, Morgan Stanley to $23, KBW to $26), but the consensus remains a Moderate Buy with an average target of $38.33.
• Despite the pullback and analyst revisions, large institutions have built new positions—notably Dragoneer (~$303.6M), Walmart (~$88M) and ARK (~$16.9M)—indicating continued institutional interest.

Klarna Group plc (NYSE:KLAR - Get Free Report)'s stock price traded down 4.6% on Wednesday . The stock traded as low as $12.96 and last traded at $12.9280. 4,258,341 shares changed hands during mid-day trading, a decline of 30% from the average session volume of 6,081,570 shares. The stock had previously closed at $13.55.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on KLAR shares. Wells Fargo & Company dropped their price objective on shares of Klarna Group from $45.00 to $32.00 and set an "overweight" rating for the company in a research note on Friday, February 20th. JPMorgan Chase & Co. lowered their target price on Klarna Group from $40.00 to $20.00 and set an "overweight" rating on the stock in a report on Friday, February 20th. Weiss Ratings restated a "sell (e+)" rating on shares of Klarna Group in a research report on Monday, December 29th. Morgan Stanley cut their price target on Klarna Group from $39.00 to $23.00 and set an "equal weight" rating for the company in a report on Wednesday, February 18th. Finally, Keefe, Bruyette & Woods reduced their price objective on Klarna Group from $45.00 to $26.00 and set an "outperform" rating on the stock in a research report on Friday, February 20th. Eleven equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $38.33.

Klarna Group Stock Down 4.6%

The stock has a 50-day moving average price of $18.98. The stock has a market cap of $4.88 billion and a PE ratio of -16.79.

Institutional Trading of Klarna Group

Several institutional investors have recently made changes to their positions in KLAR. Walmart Inc. acquired a new stake in Klarna Group during the third quarter worth $87,960,000. WCM Investment Management LLC acquired a new position in shares of Klarna Group in the 3rd quarter valued at $16,040,000. Robeco Institutional Asset Management B.V. purchased a new position in shares of Klarna Group during the 3rd quarter worth $2,199,000. ARK Investment Management LLC purchased a new position in shares of Klarna Group during the 3rd quarter worth $16,922,000. Finally, Dragoneer Investment Group LLC acquired a new stake in shares of Klarna Group during the 3rd quarter worth about $303,595,000.

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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