Klarna Group Target of Unusually High Options Trading (NYSE:KLAR)

Key Points

• Unusually high bearish options activity: Traders purchased 12,127 put options in Klarna Group, about 10% above typical volume.
• Shares declined 5.4%: KLAR fell $1.13 to $19.66 during Monday trading, while the company continued to report negative profitability despite 42.7% year-over-year quarterly revenue growth.
• Analyst sentiment remains moderately positive: Klarna has a consensus “Moderate Buy” rating and a $32.28 target price, while institutional investors including BlackRock have increased their positions.

Klarna Group plc (NYSE:KLAR - Get Free Report) saw some unusual options trading on Monday. Stock traders bought 12,127 put options on the company. This is an increase of approximately 10% compared to the typical volume of 11,019 put options.

Klarna Group Stock Down 5.4%

KLAR stock traded down $1.13 during midday trading on Monday, hitting $19.66. 2,180,167 shares of the company traded hands, compared to its average volume of 5,397,325. Klarna Group has a twelve month low of $12.06 and a twelve month high of $57.20. The stock has a market capitalization of $7.42 billion and a price-to-earnings ratio of -37.85. The business has a 50 day simple moving average of $18.90 and a 200-day simple moving average of $16.85.

Klarna Group (NYSE:KLAR - Get Free Report) last announced its earnings results on Wednesday, May 20th. The company reported ($0.01) EPS for the quarter, topping 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 quarterly revenue was up 42.7% on a year-over-year basis. Equities research analysts forecast that Klarna Group will post 0.05 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in KLAR. Commonwealth Bank of Australia bought a new stake in shares of Klarna Group in the fourth quarter valued at about $503,243,000. Wellington Management Group LLP bought a new stake in shares of Klarna Group in the 3rd quarter worth approximately $348,834,000. Scge Management L.P. acquired a new stake in shares of Klarna Group during the 3rd quarter worth approximately $193,018,000. MIC Capital Management UK LLP bought a new stake in shares of Klarna Group during the third quarter valued at approximately $99,502,000. Finally, BlackRock Inc. raised its stake in shares of Klarna Group by 89.6% in the second quarter. BlackRock Inc. now owns 5,698,353 shares of the company's stock valued at $115,335,000 after purchasing an additional 2,693,374 shares in the last quarter.

Analyst Upgrades and Downgrades

KLAR has been the subject of a number of research analyst reports. Wall Street Zen upgraded shares of Klarna Group from a "sell" rating to a "hold" rating in a report on Saturday, May 9th. BMO Capital Markets boosted their price objective on shares of Klarna Group from $17.00 to $19.00 and gave the stock a "market perform" rating in a report on Tuesday, June 23rd. Citizens Jmp assumed coverage on shares of Klarna Group in a report on Tuesday, June 30th. They issued a "market perform" rating for the company. Bank of America lifted their price target on shares of Klarna Group from $21.00 to $23.00 and gave the company a "buy" rating in a research report on Monday, May 18th. Finally, Morgan Stanley boosted their price target on Klarna Group from $18.00 to $21.00 and gave the stock an "equal weight" rating in a research note on Friday. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $32.28.

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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