Klaviyo (NYSE:KVYO) Shares Gap Up After Analyst Upgrade

Key Points

• Klaviyo's stock (NYSE:KVYO) surged after Morgan Stanley upgraded it from an equal weight to an overweight rating, raising the price target from $40.00 to $50.00.
• Benchmark increased their target for Klaviyo to $46.00 while Citigroup also upgraded it, reflecting strong analyst support with 19 "buy" ratings on the stock.
• Insider activity showed significant selling, with major shareholder Summit Partners selling 4 million shares valued at $127.5 million, raising concerns about insider sentiment.

Klaviyo, Inc. (NYSE:KVYO - Get Free Report)'s stock price gapped up before the market opened on Friday after Morgan Stanley upgraded the stock from an equal weight rating to an overweight rating. The stock had previously closed at $33.56, but opened at $34.86. Morgan Stanley now has a $50.00 price target on the stock, up from their previous price target of $40.00. Klaviyo shares last traded at $34.97, with a volume of 318,947 shares.

Several other analysts have also recently weighed in on KVYO. Cantor Fitzgerald raised Klaviyo to an "overweight" rating and set a $48.00 price target for the company in a report on Tuesday, June 3rd. Zacks Research raised Klaviyo to a "strong sell" rating in a report on Friday, August 8th. Macquarie restated a "neutral" rating and set a $37.00 price objective on shares of Klaviyo in a research note on Wednesday, August 6th. TD Cowen raised their price objective on Klaviyo from $45.00 to $46.00 and gave the stock a "buy" rating in a research note on Wednesday, August 6th. Finally, Citigroup upgraded Klaviyo from a "neutral" rating to a "buy" rating and raised their price objective for the stock from $40.00 to $50.00 in a research note on Thursday, August 7th. Nineteen research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $44.45.

Insider Activity

In other news, insider Carmel Galvin sold 11,155 shares of the stock in a transaction that occurred on Monday, August 18th. The stock was sold at an average price of $31.67, for a total transaction of $353,278.85. Following the completion of the transaction, the insider directly owned 675,833 shares in the company, valued at approximately $21,403,631.11. This represents a 1.62% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Andrew Bialecki sold 226,702 shares of the firm's stock in a transaction on Tuesday, August 26th. The stock was sold at an average price of $31.50, for a total value of $7,141,113.00. The disclosure for this sale can be found here. In the last ninety days, insiders sold 5,077,413 shares of company stock worth $161,623,703. 53.24% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Klaviyo

Institutional investors have recently added to or reduced their stakes in the business. Cooper Creek Partners Management LLC purchased a new stake in shares of Klaviyo in the second quarter valued at approximately $57,109,000. Norges Bank acquired a new position in shares of Klaviyo in the 2nd quarter valued at $52,629,000. American Century Companies Inc. lifted its stake in shares of Klaviyo by 123.4% in the 2nd quarter. American Century Companies Inc. now owns 2,685,480 shares of the company's stock valued at $90,178,000 after purchasing an additional 1,483,427 shares during the last quarter. Fiera Capital Corp acquired a new position in Klaviyo during the 2nd quarter worth about $42,645,000. Finally, JPMorgan Chase & Co. increased its holdings in Klaviyo by 105.1% during the 2nd quarter. JPMorgan Chase & Co. now owns 1,692,854 shares of the company's stock worth $56,846,000 after purchasing an additional 867,666 shares during the period. Institutional investors and hedge funds own 45.43% of the company's stock.

Klaviyo Price Performance

The business has a fifty day moving average price of $32.08 and a 200 day moving average price of $32.04.

Klaviyo (NYSE:KVYO - Get Free Report) last announced its earnings results on Tuesday, August 5th. The company reported $0.16 earnings per share for the quarter, beating the consensus estimate of $0.13 by $0.03. The company had revenue of $293.12 million for the quarter, compared to the consensus estimate of $275.97 million. Klaviyo had a negative return on equity of 1.12% and a negative net margin of 6.19%.The company's revenue was up 31.9% on a year-over-year basis. During the same period last year, the business posted $0.15 EPS. Klaviyo has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. As a group, sell-side analysts forecast that Klaviyo, Inc. will post 0.04 earnings per share for the current year.

Klaviyo Company Profile

Klaviyo, Inc, a technology company, provides a software-as-a-service platform in the United States, other Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company offers Klaviyo, a cloud-native platform for data store, segmentation engine, campaigns and flows, and messaging infrastructure.