Klarna Group (NYSE:KLAR) Shares Down 8.4% - What's Next?

Key Points

• Klarna shares fell 8.4% Wednesday to about $13.56 on volume up ~24% versus the average, leaving the stock well below its 50-day moving average of $20.74 and with a market cap near $9.6 billion (negative P/E).
• Several brokers cut price targets (e.g., Morgan Stanley to $23, UBS to $20), though the MarketBeat consensus remains a “Moderate Buy” with a consensus target of $38.33—well above the current price.
• Despite the pullback, major institutions initiated or added positions in Q3, notably Dragoneer’s roughly $303.6 million stake and new buys from Walmart, ARK and others, signaling continued investor interest.

Klarna Group plc (NYSE:KLAR - Get Free Report)'s share price was down 8.4% during trading on Wednesday . The company traded as low as $13.63 and last traded at $13.5640. Approximately 7,408,876 shares were traded during trading, an increase of 24% from the average daily volume of 5,991,667 shares. The stock had previously closed at $14.80.

Analyst Ratings Changes

Several brokerages recently weighed in on KLAR. Morgan Stanley cut their price target on shares of Klarna Group from $39.00 to $23.00 and set an "equal weight" rating on the stock in a report on Wednesday, February 18th. UBS Group dropped their price objective on shares of Klarna Group from $46.00 to $20.00 and set a "buy" rating on the stock in a report on Friday, February 20th. Wolfe Research cut their price objective on shares of Klarna Group from $50.00 to $45.00 and set an "outperform" rating on the stock in a research note on Wednesday, November 19th. Wall Street Zen cut shares of Klarna Group from a "hold" rating to a "sell" rating in a report on Sunday. Finally, Citigroup decreased their target price on shares of Klarna Group from $58.00 to $45.00 and set a "buy" rating for the company in a research report on Thursday, November 20th. Eleven investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $38.33.

Klarna Group Trading Down 9.5%

The firm has a 50-day moving average price of $20.74. The stock has a market cap of $9.61 billion and a price-to-earnings ratio of -17.39.

Institutional Inflows and Outflows

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

About Klarna Group

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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