Klaviyo (NYSE:KVYO) Shares Gap Up on 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) 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 research firms have also recently commented on KVYO. Piper Sandler upped their price target on Klaviyo from $40.00 to $55.00 and gave the stock an "overweight" rating in a research note on Wednesday, August 6th. Cantor Fitzgerald raised shares of Klaviyo to an "overweight" rating and set a $48.00 price objective on the stock in a research note on Tuesday, June 3rd. Stifel Nicolaus lowered their target price on shares of Klaviyo from $45.00 to $40.00 and set a "buy" rating on the stock in a report on Tuesday, July 15th. Citigroup raised shares of Klaviyo from a "neutral" rating to a "buy" rating and lifted their target price for the company from $40.00 to $50.00 in a report on Thursday, August 7th. Finally, Zacks Research upgraded shares of Klaviyo to a "strong sell" rating in a research report on Friday, August 8th. Nineteen analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock has an average 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 Klaviyo stock in a transaction that occurred on Monday, August 18th. The stock was sold at an average price of $31.67, for a total value of $353,278.85. Following the completion of the transaction, the insider owned 675,833 shares in the company, valued at approximately $21,403,631.11. This trade represents a 1.62% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Ed Hallen sold 89,748 shares of Klaviyo stock in a transaction that occurred on Monday, September 15th. The shares were sold at an average price of $31.71, for a total value of $2,845,909.08. Following the completion of the transaction, the director owned 177,776 shares of the company's stock, valued at approximately $5,637,276.96. The trade was a 33.55% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 5,077,413 shares of company stock worth $161,623,703 in the last ninety days. 53.24% of the stock is currently owned by company insiders.

Institutional Trading of Klaviyo

Several large investors have recently added to or reduced their stakes in the business. Osaic Holdings Inc. increased its stake in shares of Klaviyo by 317.0% during the second quarter. Osaic Holdings Inc. now owns 1,689 shares of the company's stock valued at $55,000 after acquiring an additional 1,284 shares during the period. Orion Porfolio Solutions LLC purchased a new position in shares of Klaviyo during the second quarter valued at $1,245,000. Squarepoint Ops LLC grew its holdings in shares of Klaviyo by 33.9% during the second quarter. Squarepoint Ops LLC now owns 94,290 shares of the company's stock valued at $3,166,000 after buying an additional 23,857 shares in the last quarter. State of Wyoming boosted its position in Klaviyo by 295.6% during the 2nd quarter. State of Wyoming now owns 5,439 shares of the company's stock worth $183,000 after acquiring an additional 4,064 shares during the period. Finally, Vident Advisory LLC acquired a new stake in Klaviyo during the 2nd quarter worth about $223,000. 45.43% of the stock is currently owned by institutional investors and hedge funds.

Klaviyo Stock Down 0.1%

The business's 50-day moving average price is $32.17 and its 200-day moving average price is $32.01. The firm has a market capitalization of $10.76 billion, a PE ratio of -143.65 and a beta of 1.36.

Klaviyo (NYSE:KVYO - Get Free Report) last released its quarterly earnings data 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. Klaviyo had a negative net margin of 6.19% and a negative return on equity of 1.12%. The firm had revenue of $293.12 million for the quarter, compared to analyst estimates of $275.97 million. During the same quarter in the prior year, the business earned $0.15 EPS. The company's revenue for the quarter was up 31.9% compared to the same quarter last year. Klaviyo has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. On average, analysts anticipate that Klaviyo, Inc. will post 0.04 EPS for the current fiscal 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.