Klarna Group (NYSE:KLAR) Shares Gap Up Following Insider Buying Activity

Key Points

• Klarna shares jumped from a $14.01 close to a $14.92 open after CEO Sebastian Siemiatkowski bought 692,506 shares for approximately $9.95 million, increasing his ownership by 2.81%.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and a $30.39 average price target; recent target changes ranged from Deutsche Bank’s $27 to Morgan Stanley’s $17.
• Klarna beat quarterly expectations with $0.01 in EPS versus a projected loss of $0.06 and revenue of $1.04 billion, up 26.6% year over year, though the company remains unprofitable.

Klarna Group plc (NYSE:KLAR - Get Free Report)'s stock price gapped up before the market opened on Friday after an insider bought additional shares in the company. The stock had previously closed at $14.01, but opened at $14.92. Klarna Group shares last traded at $14.90, with a volume of 3,560,593 shares.

Specifically, CEO Sebastian Siemiatkowski purchased 692,506 shares of the business's stock in a transaction that occurred on Wednesday, August 26th. The shares were bought at an average price of $14.37 per share, for a total transaction of $9,951,311.22. Following the acquisition, the chief executive officer owned 25,344,322 shares in the company, valued at $364,197,907.14. This represents a 2.81% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through the SEC website.

Analysts Set New Price Targets

Several analysts have commented on the stock. Wolfe Research cut shares of Klarna Group from an "outperform" rating to a "peer perform" rating in a research note on Tuesday. Deutsche Bank Aktiengesellschaft increased their price objective on shares of Klarna Group from $18.00 to $27.00 and gave the stock a "buy" rating in a research note on Thursday, July 2nd. Wells Fargo & Company decreased their target price on shares of Klarna Group from $26.00 to $21.00 and set an "overweight" rating for the company in a research report on Wednesday, August 19th. Morgan Stanley lowered their price target on shares of Klarna Group from $21.00 to $17.00 and set an "equal weight" rating on the stock in a report on Wednesday, August 19th. Finally, Zacks Research downgraded Klarna Group from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, August 5th. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $30.39.

Klarna Group Stock Performance

The firm has a market cap of $5.60 billion and a price-to-earnings ratio of -40.11. The business's 50 day moving average price is $18.52 and its 200 day moving average price is $16.34.

Klarna Group (NYSE:KLAR - Get Free Report) last posted its earnings results on Tuesday, August 18th. The company reported $0.01 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.06) by $0.07. The firm had revenue of $1.04 billion during the quarter, compared to analysts' expectations of $992.56 million. Klarna Group had a negative net margin of 3.54% and a negative return on equity of 5.39%. Klarna Group's quarterly revenue was up 26.6% on a year-over-year basis. Sell-side analysts anticipate that Klarna Group plc will post -0.01 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Klarna Group

Several hedge funds have recently modified their holdings of KLAR. Commonwealth Bank of Australia purchased a new position in shares of Klarna Group in the 4th quarter valued at about $503,243,000. Wellington Management Group LLP purchased a new position in Klarna Group during the third quarter worth approximately $348,834,000. Scge Management L.P. acquired a new stake in Klarna Group in the third quarter valued at approximately $193,018,000. MIC Capital Management UK LLP acquired a new stake in Klarna Group in the third quarter valued at approximately $99,502,000. Finally, BlackRock Inc. increased its position 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 buying an additional 2,693,374 shares in the last quarter.

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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