Klaviyo (NYSE:KVYO) Shares Gap Down - Time to Sell?

Key Points

• Klaviyo shares gapped down at the open, falling from a prior close of $17.46 to $16.50 before recovering slightly to around $17.39. The move came amid elevated attention on the stock after recent volatility.
• Wall Street remains mostly constructive on the company, with a consensus “Moderate Buy” rating and an average price target of $30.81, though several firms have trimmed their targets recently. Weiss Ratings, however, reiterated a sell rating.
• Klaviyo’s latest earnings topped expectations, with EPS of $0.22 versus $0.19 expected and revenue up 27.9% year over year to $358.01 million. The company also saw notable insider selling in recent months, including sales by its CFO and a director.

Klaviyo, Inc. (NYSE:KVYO - Get Free Report) shares gapped down before the market opened on Tuesday . The stock had previously closed at $17.46, but opened at $16.50. Klaviyo shares last traded at $17.3920, with a volume of 277,192 shares.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on KVYO. Weiss Ratings restated a "sell (e+)" rating on shares of Klaviyo in a research note on Wednesday, May 20th. Benchmark cut their price target on shares of Klaviyo from $33.00 to $30.00 and set a "buy" rating on the stock in a report on Wednesday, May 6th. Jefferies Financial Group set a $25.00 price objective on shares of Klaviyo in a research report on Saturday, May 9th. Cantor Fitzgerald decreased their price objective on shares of Klaviyo from $35.00 to $28.00 and set an "overweight" rating for the company in a research note on Wednesday, April 15th. Finally, Wells Fargo & Company reduced their target price on Klaviyo from $30.00 to $26.00 and set an "overweight" rating for the company in a report on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $30.81.

Klaviyo Price Performance

The firm's 50 day moving average price is $15.32 and its two-hundred day moving average price is $19.44. The stock has a market cap of $5.24 billion, a PE ratio of -439.02 and a beta of 0.63.

Klaviyo (NYSE:KVYO - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The company reported $0.22 EPS for the quarter, beating analysts' consensus estimates of $0.19 by $0.03. The company had revenue of $358.01 million for the quarter, compared to analysts' expectations of $348.57 million. Klaviyo had a negative net margin of 0.66% and a positive return on equity of 4.16%. Klaviyo's revenue was up 27.9% compared to the same quarter last year. During the same period in the prior year, the company posted $0.14 EPS. Analysts anticipate that Klaviyo, Inc. will post 0.25 earnings per share for the current year.

Insider Buying and Selling

In other Klaviyo news, Director Ledger Susan St. sold 9,334 shares of the stock in a transaction on Monday, May 18th. The stock was sold at an average price of $14.27, for a total transaction of $133,196.18. Following the sale, the director owned 10,939 shares in the company, valued at $156,099.53. This represents a 46.04% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Amanda Whalen sold 14,000 shares of the firm's stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $13.23, for a total value of $185,220.00. Following the completion of the transaction, the chief financial officer directly owned 852,192 shares of the company's stock, valued at $11,274,500.16. The trade was a 1.62% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 673,486 shares of company stock worth $9,973,125. Insiders own 37.42% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. increased its holdings in shares of Klaviyo by 12.3% in the fourth quarter. Vanguard Group Inc. now owns 14,361,540 shares of the company's stock worth $466,319,000 after purchasing an additional 1,573,812 shares during the period. Jefferies Financial Group Inc. boosted its stake in Klaviyo by 2,320.7% during the fourth quarter. Jefferies Financial Group Inc. now owns 455,000 shares of the company's stock valued at $14,774,000 after buying an additional 436,204 shares during the period. Delta Global Management LP boosted its stake in Klaviyo by 52.7% during the fourth quarter. Delta Global Management LP now owns 785,308 shares of the company's stock valued at $25,499,000 after buying an additional 270,944 shares during the period. Huntington National Bank boosted its stake in Klaviyo by 117.1% during the fourth quarter. Huntington National Bank now owns 166,501 shares of the company's stock valued at $5,406,000 after buying an additional 89,800 shares during the period. Finally, Barton Investment Management grew its position in Klaviyo by 56.7% during the first quarter. Barton Investment Management now owns 1,050,052 shares of the company's stock worth $20,434,000 after buying an additional 380,010 shares in the last quarter. Hedge funds and other institutional investors own 45.43% of the company's stock.

Klaviyo Company Profile

Klaviyo, Inc is a cloud-based marketing automation platform that enables businesses to leverage customer data for targeted email and SMS campaigns. The company's platform centralizes first-party data from various sources—including e-commerce storefronts, websites, and CRM systems—to help organizations deliver personalized marketing across the customer lifecycle. Klaviyo's core offerings include segmented email marketing, automated messaging workflows, and performance analytics designed to drive customer engagement and revenue growth.

The platform provides a suite of tools for campaign creation and management, including drag-and-drop email and SMS builders, dynamic content rendering, and A/B testing capabilities.

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