Sezzle (NASDAQ:SEZL) Shares Gap Down - Here's What Happened

Key Points

• Sezzle shares fell 5.2%, opening at $115.00 after closing at $120.55, with the latest trading price near $114.68.
• Analyst sentiment remains positive overall, with a “Moderate Buy” consensus and an average price target of $146.50; targets from Northland and Needham were $170 and $172, respectively.
• Sezzle exceeded quarterly expectations, reporting $1.13 EPS versus $1.03 expected and revenue of $149.68 million versus $135.09 million projected. Insiders sold 84,750 shares worth $13.3 million over the last quarter.

Sezzle Inc. (NASDAQ:SEZL - Get Free Report)'s share price gapped down prior to trading on Tuesday . The stock had previously closed at $120.55, but opened at $115.00. Sezzle shares last traded at $114.6780, with a volume of 144,491 shares changing hands.

Analysts Set New Price Targets

SEZL has been the topic of a number of research reports. Oppenheimer lowered shares of Sezzle from an "outperform" rating to a "market perform" rating in a research report on Monday, June 29th. Freedom Capital raised Sezzle to a "hold" rating in a research note on Wednesday, June 24th. B. Riley Financial restated a "buy" rating on shares of Sezzle in a report on Friday, August 7th. Northland Securities set a $170.00 target price on Sezzle in a research report on Thursday, June 25th. Finally, Needham & Company LLC reiterated a "buy" rating and issued a $172.00 target price on shares of Sezzle in a report on Thursday, August 20th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, Sezzle currently has an average rating of "Moderate Buy" and an average price target of $146.50.

Sezzle Trading Down 5.2%

The stock has a market capitalization of $3.85 billion, a P/E ratio of 24.89 and a beta of 6.76. The stock's 50 day moving average price is $153.66 and its 200-day moving average price is $110.93. The company has a quick ratio of 4.02, a current ratio of 4.02 and a debt-to-equity ratio of 0.52.

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

Insider Buying and Selling

In related news, CFO Lee Dickson Brading sold 10,000 shares of the company's stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $178.23, for a total transaction of $1,782,300.00. Following the completion of the sale, the chief financial officer directly owned 296,931 shares in the company, valued at $52,922,012.13. This represents a 3.26% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paul Paradis sold 26,400 shares of the firm's stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $133.47, for a total value of $3,523,608.00. Following the sale, the director directly owned 442,595 shares in the company, valued at approximately $59,073,154.65. The trade was a 5.63% 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. In the last quarter, insiders sold 84,750 shares of company stock valued at $13,262,695. 49.49% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Sezzle

A number of hedge funds and other institutional investors have recently bought and sold shares of SEZL. Corient Private Wealth LP grew its holdings in Sezzle by 19.1% in the second quarter. Corient Private Wealth LP now owns 5,193 shares of the company's stock worth $891,000 after purchasing an additional 834 shares during the last quarter. Amundi acquired a new position in shares of Sezzle during the second quarter worth $736,000. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in shares of Sezzle during the 2nd quarter valued at $1,322,000. California State Teachers Retirement System boosted its position in shares of Sezzle by 11,703.7% in the 2nd quarter. California State Teachers Retirement System now owns 3,335,972 shares of the company's stock worth $572,553,000 after purchasing an additional 3,307,710 shares in the last quarter. Finally, AXQ Capital LP acquired a new stake in shares of Sezzle in the 2nd quarter worth $769,000. Hedge funds and other institutional investors own 2.02% of the company's stock.

About Sezzle

Sezzle Inc is a financial technology company specializing in buy now, pay later (BNPL) services that enable consumers to split purchases into interest-free installment payments. By integrating its platform with e-commerce merchants, Sezzle provides shoppers with flexible payment options at checkout while merchants benefit from increased conversion rates and average order values. The company's technology is designed to offer a seamless user experience, with instant approval decisions and no hidden fees, positions it as a consumer-friendly alternative to traditional credit products.

Founded in 2016 and headquartered in Minneapolis, Minnesota, Sezzle completed its initial public offering on the Nasdaq under the ticker SEZL.

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