Klarna Group (NYSE:KLAR) Shares Up 4.6% - Still a Buy?

Key Points

• Klarna shares rose 4.6% to $13.30 in Friday mid-day trading, though trading volume was about 90% below its average.
• Analysts have a consensus “Hold” rating and a $22.44 target price; several recently cut their price targets to around $15–$16.
• Klarna’s latest quarterly results beat estimates, with revenue up 26.6% year over year to $1.04 billion. CEO Sebastian Siemiatkowski also purchased about 692,500 shares for nearly $10 million.

Klarna Group plc (NYSE:KLAR - Get Free Report) shares traded up 4.6% during mid-day trading on Friday. The stock traded as high as $13.21 and last traded at $13.30. 557,687 shares changed hands during trading, a decline of 90% from the average daily volume of 5,727,024 shares. The stock had previously closed at $12.71.

Wall Street Analyst Weigh In

A number of equities analysts have commented on KLAR shares. TD Cowen lowered their price objective on Klarna Group from $18.00 to $16.00 and set a "hold" rating for the company in a research report on Tuesday, October 6th. Barclays dropped their price objective on Klarna Group from $20.00 to $16.00 and set an "equal weight" rating for the company in a research note on Wednesday, August 19th. Wolfe Research cut shares of Klarna Group from an "outperform" rating to a "peer perform" rating in a report on Tuesday, August 25th. UBS Group downgraded shares of Klarna Group from a "buy" rating to a "neutral" rating and decreased their target price for the stock from $23.00 to $16.00 in a research note on Monday, August 24th. Finally, BMO Capital Markets lowered their price target on shares of Klarna Group from $19.00 to $15.00 and set a "market perform" rating for the company in a report on Wednesday, August 19th. 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 issued a Sell rating to the company. According to MarketBeat, Klarna Group presently has an average rating of "Hold" and a consensus target price of $22.44.

Klarna Group Price Performance

The company has a market cap of $5.11 billion, a PE ratio of -36.66 and a beta of 1.62. The business has a 50 day moving average of $13.37 and a 200 day moving average of $15.83.

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

Insider Buying and Selling at Klarna Group

In related news, CEO Sebastian Siemiatkowski bought 692,506 shares of the business's stock in a transaction dated Wednesday, August 26th. The shares were purchased at an average price of $14.37 per share, with a total value of $9,951,311.22. Following the purchase, the chief executive officer owned 25,344,322 shares of the company's stock, valued at approximately $364,197,907.14. This trade represents a 2.81% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website.

Hedge Funds Weigh In On Klarna Group

Institutional investors have recently bought and sold shares of the stock. State Street Corp boosted its position in Klarna Group by 22.6% during the 3rd quarter. State Street Corp now owns 374,742 shares of the company's stock valued at $4,643,000 after acquiring an additional 69,000 shares in the last quarter. Proem Advisors LLC purchased a new position in shares of Klarna Group during the 3rd quarter worth approximately $2,199,000. Sompo Asset Management Co. Ltd. raised its position in shares of Klarna Group by 52.3% in the 3rd quarter. Sompo Asset Management Co. Ltd. now owns 30,000 shares of the company's stock worth $372,000 after acquiring an additional 10,300 shares in the last quarter. R Squared Ltd bought a new position in shares of Klarna Group in the 3rd quarter worth approximately $205,000. Finally, Alps Advisors Inc. bought a new position in shares of Klarna Group in the 3rd quarter worth approximately $640,000.

About Klarna Group

Klarna Group is a financial technology company that provides digital payment and shopping services to consumers and merchants. Its offerings include checkout payments, installment plans, and options to pay immediately or at a later date, subject to availability and terms. The company also operates a shopping app where users can discover products, compare prices, track orders, and manage purchases. For merchants, Klarna provides payment processing and related tools designed to support online and in-store commerce.

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