Sezzle (NASDAQ:SEZL) Downgraded by Keefe, Bruyette & Woods to "Hold"

Key Points

• Keefe, Bruyette & Woods downgraded Sezzle from “moderate buy” to “hold,” adding to a mixed analyst picture that still leaves the stock with a consensus Moderate Buy rating.
• Despite the downgrade, Sezzle has seen generally positive analyst attention recently, with multiple firms raising price targets and the average target now at $151.33.
• The company’s latest results showed strong earnings and revenue growth, with quarterly EPS of $1.43 beating estimates and revenue rising 29.2% year over year; however, the stock was down 10.7% in the report.

Sezzle (NASDAQ:SEZL - Get Free Report) was downgraded by equities research analysts at Keefe, Bruyette & Woods from a "moderate buy" rating to a "hold" rating in a report issued on Sunday,Zacks.com reports.

A number of other equities research analysts have also weighed in on SEZL. Needham & Company LLC reaffirmed a "buy" rating and set a $166.00 price target (up from $132.00) on shares of Sezzle in a report on Thursday, June 18th. Northland Securities set a $170.00 price objective on shares of Sezzle in a report on Thursday, June 25th. Weiss Ratings raised shares of Sezzle from a "hold (c-)" rating to a "hold (c+)" rating in a research report on Thursday, May 7th. TD Cowen raised their target price on Sezzle from $108.00 to $165.00 and gave the company a "hold" rating in a research note on Tuesday, July 7th. Finally, Freedom Capital raised Sezzle to a "hold" rating in a research report on Wednesday, June 24th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $151.33.

Sezzle Stock Down 10.7%

NASDAQ SEZL opened at $160.25 on Friday. The company has a quick ratio of 3.65, a current ratio of 3.65 and a debt-to-equity ratio of 0.73. Sezzle has a fifty-two week low of $49.50 and a fifty-two week high of $185.00. The business has a 50 day moving average price of $133.34 and a two-hundred day moving average price of $91.84. The stock has a market cap of $5.39 billion, a PE ratio of 38.06 and a beta of 6.70.

Sezzle (NASDAQ:SEZL - Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The company reported $1.43 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.24 by $0.19. Sezzle had a net margin of 30.83% and a return on equity of 87.46%. The company had revenue of $135.54 million for the quarter, compared to analyst estimates of $127.74 million. During the same quarter last year, the firm posted $0.98 earnings per share. The business's quarterly revenue was up 29.2% on a year-over-year basis. Sezzle has set its FY 2026 guidance at 5.100-5.100 EPS. As a group, sell-side analysts predict that Sezzle will post 5.1 EPS for the current fiscal year.

Insider Activity at Sezzle

In other news, SVP Justin Krause sold 11,822 shares of the business's stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $106.46, for a total value of $1,258,570.12. Following the completion of the sale, the senior vice president owned 67,635 shares of the company's stock, valued at approximately $7,200,422.10. The trade was a 14.88% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paul Paradis sold 26,400 shares of the company's stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $161.35, for a total transaction of $4,259,640.00. Following the completion of the sale, the director owned 416,195 shares in the company, valued at approximately $67,153,063.25. This trade represents a 5.96% 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 124,382 shares of company stock valued at $17,416,662 in the last 90 days. 49.49% of the stock is currently owned by insiders.

Institutional Trading of Sezzle

Several institutional investors and hedge funds have recently bought and sold shares of the company. UBS Group AG increased its holdings in shares of Sezzle by 113.9% in the 4th quarter. UBS Group AG now owns 114,426 shares of the company's stock valued at $7,263,000 after acquiring an additional 60,937 shares during the last quarter. State of Alaska Department of Revenue bought a new position in Sezzle during the fourth quarter worth $1,017,000. Hussman Strategic Advisors Inc. lifted its stake in Sezzle by 38.9% during the fourth quarter. Hussman Strategic Advisors Inc. now owns 52,500 shares of the company's stock worth $3,332,000 after purchasing an additional 14,700 shares during the last quarter. Maxi Investments CY Ltd acquired a new position in Sezzle in the fourth quarter worth $1,270,000. Finally, SG Americas Securities LLC boosted its holdings in Sezzle by 54.9% in the fourth quarter. SG Americas Securities LLC now owns 49,749 shares of the company's stock worth $3,158,000 after purchasing an additional 17,628 shares during the period. Institutional investors and hedge funds own 2.02% of the company's stock.

Sezzle Company Profile

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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