Klaviyo (NYSE:KVYO) Shares Gap Up - Should You Buy?

Key Points

• Klaviyo shares jumped from a prior close of $17.52 to open at $18.92, later trading near $19.20. The company has a $5.48 billion market capitalization and trades at a very high price-to-earnings ratio of about 958.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus rating and an average price target of $26.86; recent targets range from $20 to $31.
• Klaviyo’s latest quarterly revenue rose 26.4% year over year to $370.58 million, exceeding estimates, while EPS of $0.19 matched expectations. However, insiders sold more than 5.27 million shares worth approximately $93.8 million over the past three months.

Klaviyo, Inc. (NYSE:KVYO - Get Free Report) gapped up prior to trading on Tuesday. The stock had previously closed at $17.52, but opened at $18.92. Klaviyo shares last traded at $19.1970, with a volume of 3,171,295 shares.

Wall Street Analyst Weigh In

KVYO has been the subject of several analyst reports. Wells Fargo & Company set a $29.00 price target on shares of Klaviyo in a research report on Thursday, August 6th. Morgan Stanley set a $31.00 price objective on shares of Klaviyo in a report on Thursday, August 6th. Jefferies Financial Group reaffirmed a "buy" rating and issued a $21.00 price objective on shares of Klaviyo in a research report on Thursday, August 6th. The Goldman Sachs Group reaffirmed a "neutral" rating and issued a $20.00 price objective (down from $27.00) on shares of Klaviyo in a research report on Friday. Finally, Needham & Company LLC reiterated a "buy" rating on shares of Klaviyo in a research note on Wednesday, September 2nd. Seventeen analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $26.86.

Klaviyo Stock Performance

The stock has a 50-day simple moving average of $17.41 and a two-hundred day simple moving average of $16.96. The firm has a market cap of $5.48 billion, a PE ratio of 957.93 and a beta of 0.67.

Klaviyo (NYSE:KVYO - Get Free Report) last posted its earnings results on Wednesday, August 5th. The company reported $0.19 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.19. Klaviyo had a net margin of 0.49% and a return on equity of 5.67%. The business had revenue of $370.58 million for the quarter, compared to analysts' expectations of $362.08 million. During the same quarter in the prior year, the business earned $0.16 EPS. The business's revenue for the quarter was up 26.4% compared to the same quarter last year. As a group, sell-side analysts anticipate that Klaviyo, Inc. will post 0.20 EPS for the current fiscal year.

Insider Activity

In related news, insider Landon Edmond sold 53,473 shares of the firm's stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $20.01, for a total value of $1,069,994.73. Following the sale, the insider owned 485,969 shares in the company, valued at approximately $9,724,239.69. This trade represents a 9.91% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ed Hallen sold 98,782 shares of Klaviyo stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $20.48, for a total transaction of $2,023,055.36. Following the completion of the sale, the director directly owned 94,457 shares of the company's stock, valued at approximately $1,934,479.36. This trade represents a 51.12% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 5,275,468 shares of company stock valued at $93,822,653 over the last three months. Corporate insiders own 37.42% of the company's stock.

Institutional Investors Weigh In On Klaviyo

A number of hedge funds have recently added to or reduced their stakes in the stock. Bank of America Corp DE boosted its position in Klaviyo by 88.9% in the first quarter. Bank of America Corp DE now owns 1,686,770 shares of the company's stock worth $32,825,000 after purchasing an additional 793,613 shares during the last quarter. Bank of New York Mellon Corp increased its position in shares of Klaviyo by 8.9% during the 1st quarter. Bank of New York Mellon Corp now owns 1,508,137 shares of the company's stock valued at $29,348,000 after purchasing an additional 123,480 shares during the last quarter. First Trust Advisors LP increased its position in shares of Klaviyo by 46.5% during the 1st quarter. First Trust Advisors LP now owns 1,181,887 shares of the company's stock valued at $23,000,000 after purchasing an additional 374,959 shares during the last quarter. Barton Investment Management increased its position in shares of Klaviyo by 56.7% during the 1st quarter. Barton Investment Management now owns 1,050,052 shares of the company's stock valued at $20,434,000 after purchasing an additional 380,010 shares during the last quarter. Finally, Janus Henderson Group PLC lifted its stake in shares of Klaviyo by 15.6% in the 1st quarter. Janus Henderson Group PLC now owns 1,025,134 shares of the company's stock worth $19,951,000 after purchasing an additional 138,356 shares during the period. 45.43% of the stock is currently owned by hedge funds and other institutional investors.

Klaviyo Company Profile

Klaviyo, Inc NYSE: KVYO provides a customer data and marketing automation platform designed primarily for businesses that sell online. Its software helps organizations collect, organize and analyze customer information, then use those insights to create personalized marketing and customer engagement campaigns.

The company's platform supports communication across channels including email, SMS and mobile push notifications. Its products provide tools for audience segmentation, campaign orchestration, automation, analytics and reporting, with capabilities intended to help businesses improve customer acquisition, engagement and retention.

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