Klarna Group (NYSE:KLAR) Shares Break Above Fifty Day Moving Average - Time to Sell?

Key Points

• Klarna shares crossed above their 50-day moving average, trading as high as $13.77 versus the $13.54 average, but remained below the 200-day average of $16.60.
• Analyst sentiment is mixed: the consensus rating is “Hold”, with 11 Holds, seven Buys, one Strong Buy, and one Sell. Recent firms lowered price targets, while Monness Crespi & Hardt initiated coverage with a Buy rating and a $20 target.
• Klarna exceeded quarterly expectations, reporting $0.01 EPS and $1.04 billion in revenue, up 26.6% year over year. CEO Sebastian Siemiatkowski also bought approximately $9.95 million of company shares.

Klarna Group plc (NYSE:KLAR - Get Free Report) shares crossed above its fifty day moving average during trading on Thursday. The stock has a fifty day moving average of $13.54 and traded as high as $13.77. Klarna Group shares last traded at $13.6840, with a volume of 9,004,642 shares.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on KLAR. Monness Crespi & Hardt assumed coverage on shares of Klarna Group in a research report on Monday. They set a "buy" rating and a $20.00 price target on the stock. JPMorgan Chase & Co. lowered shares of Klarna Group from an "overweight" rating to a "neutral" rating and dropped their price objective for the stock from $22.00 to $18.00 in a research report on Wednesday, August 19th. BMO Capital Markets dropped their price objective on shares of Klarna Group from $19.00 to $15.00 and set a "market perform" rating for the company in a research report on Wednesday, August 19th. Weiss Ratings reissued a "sell (e+)" rating on shares of Klarna Group in a research note on Thursday, August 13th. Finally, UBS Group lowered shares of Klarna Group from a "buy" rating to a "neutral" rating and reduced their target price for the company from $23.00 to $16.00 in a report on Monday, August 24th. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $22.44.

Klarna Group Stock Performance

The firm has a market capitalization of $5.17 billion and a PE ratio of -36.98. The firm has a fifty day moving average of $13.54 and a 200 day moving average of $16.60.

Klarna Group (NYSE:KLAR - Get Free Report) last released its quarterly earnings results on Friday, August 14th. The company reported $0.01 EPS for the quarter, topping the consensus estimate of ($0.06) by $0.07. The firm had revenue of $1.04 billion for the quarter, compared to analyst estimates of $992.56 million. Klarna Group had a negative return on equity of 5.39% and a negative net margin of 3.54%. The firm's revenue for the quarter was up 26.6% compared to the same quarter last year. Research analysts forecast that Klarna Group plc will post -0.01 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Sebastian Siemiatkowski bought 692,506 shares of Klarna Group stock in a transaction dated Wednesday, August 26th. The shares were acquired at an average cost of $14.37 per share, with a total value of $9,951,311.22. Following the completion of the transaction, the chief executive officer owned 25,344,322 shares in the company, valued at approximately $364,197,907.14. This trade represents a 2.81% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink.

Institutional Investors Weigh In On Klarna Group

A number of large investors have recently added to or reduced their stakes in KLAR. Integrated Wealth Concepts LLC purchased a new position in Klarna Group in the second quarter valued at about $35,000. Asset Management One Co. Ltd. grew its stake in Klarna Group by 39.9% during the 3rd quarter. Asset Management One Co. Ltd. now owns 3,235 shares of the company's stock valued at $40,000 after purchasing an additional 922 shares in the last quarter. Farther Finance Advisors LLC increased its holdings in Klarna Group by 154.8% during the 3rd quarter. Farther Finance Advisors LLC now owns 3,402 shares of the company's stock worth $42,000 after purchasing an additional 2,067 shares during the last quarter. Atwood & Palmer Inc. purchased a new stake in Klarna Group during the 2nd quarter worth approximately $86,000. Finally, Byrne Asset Management LLC acquired a new position in shares of Klarna Group in the 3rd quarter valued at approximately $105,000.

About Klarna Group

Klarna Group is a global financial technology company that provides digital payment and consumer-finance services. Its platform enables shoppers to pay immediately, later, or over time, while giving merchants tools to process payments, manage checkout experiences, and engage customers.

The company's products include buy now, pay later options, installment plans, direct payments, digital checkout services, and the Klarna Card. Klarna also operates a consumer shopping platform that allows users to discover products, compare offers, track purchases, and manage payments.

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