Sezzle (NASDAQ:SEZL) Shares Climb 6% - Should You Buy?

Key Points

• Sezzle shares rose 6% to $124.27, though trading volume was 93% below the average session volume.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $145.67; however, some firms recently downgraded the stock to “Hold” or “Market Perform.”
• Sezzle exceeded quarterly expectations, reporting $1.13 in EPS and $149.68 million in revenue, while posting an 83.48% return on equity and a 30.35% net margin.

Shares of Sezzle Inc. (NASDAQ:SEZL - Get Free Report) traded up 6% during trading on Friday. The company traded as high as $122.27 and last traded at $124.27. Approximately 51,204 shares changed hands during mid-day trading, a decline of 93% from the average session volume of 696,501 shares. The stock had previously closed at $117.22.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the company. Wall Street Zen downgraded Sezzle from a "buy" rating to a "hold" rating in a report on Sunday, October 4th. B. Riley Financial restated a "buy" rating on shares of Sezzle in a research note on Friday, August 7th. Northland Securities set a $170.00 target price on Sezzle in a research report on Thursday, June 25th. Freedom Capital upgraded Sezzle to a "hold" rating in a research note on Wednesday, June 24th. Finally, Oppenheimer downgraded Sezzle from an "outperform" rating to a "market perform" rating in a report on Monday, June 29th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat, Sezzle has an average rating of "Moderate Buy" and an average price target of $145.67.

Sezzle Stock Performance

The company has a debt-to-equity ratio of 0.52, a current ratio of 4.02 and a quick ratio of 4.02. The stock has a 50-day moving average price of $122.77 and a 200-day moving average price of $120.20. The firm has a market capitalization of $4.24 billion, a PE ratio of 27.33 and a beta of 6.71.

Sezzle (NASDAQ:SEZL - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported $1.13 EPS for the quarter, beating the consensus estimate of $1.03 by $0.10. Sezzle had a return on equity of 83.48% and a net margin of 30.35%.The company had revenue of $149.68 million during the quarter, compared to analysts' expectations of $135.09 million. Sezzle has set its FY 2026 guidance at 5.250-5.250 EPS. On average, research analysts expect that Sezzle Inc. will post 5.24 EPS for the current fiscal year.

Insider Activity

In related news, Director Bryan Hunt bought 250 shares of the company's stock in a transaction dated Friday, September 18th. The stock was bought at an average price of $115.86 per share, with a total value of $28,965.00. Following the transaction, the director owned 3,985 shares of the company's stock, valued at approximately $461,702.10. This trade represents a 6.69% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Kyle Brehm sold 1,000 shares of the stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $125.92, for a total transaction of $125,920.00. Following the transaction, the director directly owned 23,853 shares in the company, valued at $3,003,569.76. The trade was a 4.02% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 49.49% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Sezzle

A number of hedge funds have recently added to or reduced their stakes in the stock. GAMMA Investing LLC raised its holdings in shares of Sezzle by 26.6% during the third quarter. GAMMA Investing LLC now owns 1,127 shares of the company's stock valued at $122,000 after acquiring an additional 237 shares during the period. Cim Investment Management Inc. acquired a new position in Sezzle in the 2nd quarter worth approximately $317,000. Tidal Investments LLC acquired a new position in Sezzle in the 2nd quarter worth approximately $564,000. Integrated Wealth Concepts LLC purchased a new position in Sezzle during the 2nd quarter worth approximately $39,000. Finally, IFP Advisors Inc grew its position in Sezzle by 224.4% during the 2nd quarter. IFP Advisors Inc now owns 146 shares of the company's stock worth $25,000 after purchasing an additional 101 shares in the last quarter. 2.02% of the stock is currently owned by institutional investors.

Sezzle Company Profile

Sezzle Inc is a financial technology company that operates a digital payment platform focused on buy now, pay later (BNPL) services. Its platform allows consumers to divide eligible purchases into installments, typically at the time of checkout, while giving merchants an alternative payment option designed to support customer purchasing and engagement.

Sezzle offers its services through e-commerce integrations, in-store payment capabilities and consumer-facing tools such as a virtual card.

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