Sezzle (NASDAQ:SEZL) Stock Jumps 13.3% - Time to Buy?

Key Points

• Sezzle shares jumped 13.3% to a reported last trade of $138.69, up from a prior close of $122.43; trading volume was 40% below average.
• The company beat quarterly expectations, reporting EPS of $1.13 versus $1.03 estimated and revenue of $149.68 million versus $135.09 million expected.
• Analyst sentiment is mixed but leans positive: MarketBeat reports a “Moderate Buy” consensus and a $145.67 average price target, while some firms recently downgraded or reduced targets.

Sezzle Inc. (NASDAQ:SEZL - Get Free Report)'s stock price rose 13.3% on Wednesday. The company traded as high as $136.30 and last traded at $138.6850. 406,882 shares changed hands during trading, a decline of 40% from the average session volume of 681,018 shares. The stock had previously closed at $122.43.

Wall Street Analyst Weigh In

SEZL has been the subject of several recent research reports. Weiss Ratings reiterated a "hold (c+)" rating on shares of Sezzle in a research note on Monday. Keefe, Bruyette & Woods cut their price objective on shares of Sezzle from $190.00 to $155.00 and set a "market perform" rating for the company in a report on Friday, August 7th. Wall Street Zen lowered shares of Sezzle from a "buy" rating to a "hold" rating in a research note on Sunday. B. Riley Financial reiterated a "buy" rating on shares of Sezzle in a research note on Friday, August 7th. Finally, TD Cowen lowered their target price on shares of Sezzle from $165.00 to $160.00 and set a "buy" rating on the stock in a report on Tuesday, October 6th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $145.67.

Sezzle Price Performance

The business's 50-day moving average price is $121.03 and its 200 day moving average price is $109.02. The company has a quick ratio of 4.02, a current ratio of 4.02 and a debt-to-equity ratio of 0.52. The company has a market capitalization of $4.63 billion, a P/E ratio of 29.62 and a beta of 6.59.

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, beating the consensus estimate of $1.03 by $0.10. The company had revenue of $149.68 million during the quarter, compared to analysts' expectations 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. Analysts anticipate that Sezzle Inc. will post 5.24 EPS for the current fiscal year.

Insiders Place Their Bets

In other Sezzle news, Director Bryan Hunt bought 250 shares of Sezzle stock in a transaction that occurred on Friday, September 18th. The stock was acquired at an average cost of $115.86 per share, for a total transaction of $28,965.00. Following the completion of the transaction, the director directly owned 3,985 shares in the company, valued at $461,702.10. This represents a 6.69% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Kyle M. Brehm sold 1,000 shares of the company's stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $125.92, for a total value of $125,920.00. Following the completion of the transaction, the director owned 23,853 shares in the company, valued at $3,003,569.76. This represents a 4.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 43.90% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of SEZL. BlackRock Inc. bought a new stake in shares of Sezzle in the 2nd quarter valued at about $436,497,000. Bank of America Corp DE bought a new position in Sezzle during the 2nd quarter worth approximately $46,543,000. Dimensional Fund Advisors LP grew its position in Sezzle by 41.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 458,222 shares of the company's stock worth $28,996,000 after acquiring an additional 134,714 shares during the last quarter. Jupiter Topco LLC bought a new position in Sezzle during the 2nd quarter worth approximately $19,433,000. Finally, Bank of New York Mellon Corp purchased a new position in Sezzle in the 2nd quarter worth approximately $16,909,000. Hedge funds and other institutional investors own 2.02% of the company's stock.

About Sezzle

Sezzle Inc NASDAQ: SEZL is a financial technology company that provides buy now, pay later solutions. Its platform enables consumers to split eligible purchases into installments, generally at the time of checkout, while giving merchants payment and customer-engagement tools designed to support e-commerce sales.

The company offers installment payment services through its consumer app and merchant integrations, as well as products such as Sezzle Virtual Card and Sezzle Up. Sezzle Up is designed to provide eligible users with credit-building opportunities, while the company's merchant platform supports checkout integration, transaction management and consumer financing.

Sezzle was founded in 2016 and is headquartered in Minneapolis, Minnesota.

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