Klarna Group (NYSE:KLAR) Shares Down 6.1% - Here's What Happened

Key Points

• Klarna shares fell 6.1% to about $19.53 in Monday trading, with volume roughly 84% below the average session level.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $32.28, despite recent ratings ranging from “Strong Buy” to “Sell.”
• Klarna’s latest quarterly results beat expectations, reporting a loss of $0.01 per share versus the anticipated $0.13 loss, while revenue increased 42.7% year over year; however, the company remained unprofitable.

Klarna Group plc (NYSE:KLAR - Get Free Report)'s share price fell 6.1% during trading on Monday . The company traded as low as $19.60 and last traded at $19.5260. Approximately 887,765 shares changed hands during mid-day trading, a decline of 84% from the average session volume of 5,391,641 shares. The stock had previously closed at $20.79.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on KLAR. JPMorgan Chase & Co. raised their price target on shares of Klarna Group from $20.00 to $22.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 8th. Citizens Jmp initiated coverage on shares of Klarna Group in a research report on Tuesday, June 30th. They set a "market perform" rating for the company. Barclays assumed coverage on shares of Klarna Group in a research note on Wednesday, July 8th. They set an "equal weight" rating and a $20.00 price objective on the stock. TD Cowen lifted their target price on Klarna Group from $17.00 to $19.00 and gave the company a "hold" rating in a research note on Tuesday, July 7th. Finally, Zacks Research cut Klarna Group from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $32.28.

Klarna Group Stock Performance

The stock has a market capitalization of $7.29 billion and a price-to-earnings ratio of -37.26. The business's 50 day simple moving average is $18.90 and its 200-day simple moving average is $16.85.

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

Institutional Trading of Klarna Group

A number of institutional investors have recently made changes to their positions in the stock. Commonwealth Bank of Australia acquired a new stake in Klarna Group in the fourth quarter worth approximately $503,243,000. Wellington Management Group LLP bought a new stake in shares of Klarna Group in the 3rd quarter worth $348,834,000. Scge Management L.P. acquired a new stake in shares of Klarna Group in the third quarter valued at $193,018,000. MIC Capital Management UK LLP acquired a new stake in shares of Klarna Group in the third quarter valued at $99,502,000. Finally, BlackRock Inc. grew 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 worth $115,335,000 after acquiring an additional 2,693,374 shares during the period.

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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