Sezzle (NASDAQ:SEZL) Issues FY 2025 Earnings Guidance

Key Points

• Sezzle provided FY 2025 earnings guidance of EPS between 3.250-3.250 and revenue of $433.8 million-$447.4 million, both slightly below consensus estimates.
• Several brokerages have updated their ratings on Sezzle, with B. Riley increasing the target price to $111.00 while Oppenheimer raised its target to $202.00.
• Institutional investors significantly increased their positions in Sezzle, with Goldman Sachs raising its stake by 1,068.2% in the first quarter.

Sezzle (NASDAQ:SEZL - Get Free Report) issued an update on its FY 2025 earnings guidance on Friday morning. The company provided EPS guidance of 3.250-3.250 for the period, compared to the consensus EPS estimate of 3.260. The company issued revenue guidance of $433.8 million-$447.4 million, compared to the consensus revenue estimate of $441.8 million.

Analyst Ratings Changes

Several brokerages recently issued reports on SEZL. B. Riley raised their target price on Sezzle from $101.00 to $111.00 and gave the stock a "buy" rating in a research report on Monday. Oppenheimer boosted their target price on shares of Sezzle from $168.00 to $202.00 and gave the company an "outperform" rating in a report on Wednesday, July 2nd. Finally, Wall Street Zen downgraded Sezzle from a "strong-buy" rating to a "buy" rating in a report on Thursday, May 22nd.

Sezzle Price Performance

Sezzle stock opened at $91.47 on Friday. The stock has a market capitalization of $3.11 billion, a price-to-earnings ratio of 31.34 and a beta of 9.09. Sezzle has a 52-week low of $19.67 and a 52-week high of $186.74. The company has a debt-to-equity ratio of 1.00, a quick ratio of 2.62 and a current ratio of 3.51. The stock's 50 day moving average price is $143.13 and its two-hundred day moving average price is $85.97.

Sezzle (NASDAQ:SEZL - Get Free Report) last issued its earnings results on Thursday, August 7th. The company reported $0.69 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.58 by $0.11. The business had revenue of $60.31 million for the quarter, compared to analyst estimates of $93.33 million. Sezzle had a net margin of 28.13% and a return on equity of 102.90%. On average, equities analysts predict that Sezzle will post 9.77 earnings per share for the current year.

Insider Transactions at Sezzle

In other Sezzle news, CFO Karen Hartje sold 5,484 shares of the firm's stock in a transaction on Monday, July 7th. The stock was sold at an average price of $168.02, for a total transaction of $921,421.68. Following the transaction, the chief financial officer directly owned 126,846 shares in the company, valued at approximately $21,312,664.92. This trade represents a 4.14% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Paul Paradis sold 3,000 shares of the business's stock in a transaction dated Tuesday, June 24th. The stock was sold at an average price of $148.62, for a total transaction of $445,860.00. Following the transaction, the director owned 266,000 shares in the company, valued at approximately $39,532,920. This trade represents a 1.12% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 80,696 shares of company stock valued at $11,817,465 in the last 90 days. 49.49% of the stock is currently owned by corporate insiders.

Institutional Trading of Sezzle

Institutional investors and hedge funds have recently made changes to their positions in the stock. Goldman Sachs Group Inc. increased its position in shares of Sezzle by 1,068.2% during the 1st quarter. Goldman Sachs Group Inc. now owns 169,487 shares of the company's stock valued at $5,913,000 after purchasing an additional 154,978 shares during the last quarter. Royal Bank of Canada grew its position in Sezzle by 429.0% during the first quarter. Royal Bank of Canada now owns 132,361 shares of the company's stock valued at $4,618,000 after acquiring an additional 107,340 shares during the last quarter. Millennium Management LLC raised its stake in shares of Sezzle by 321.7% during the first quarter. Millennium Management LLC now owns 115,525 shares of the company's stock worth $4,031,000 after acquiring an additional 88,127 shares in the last quarter. Invesco Ltd. lifted its holdings in shares of Sezzle by 1,208.9% in the 2nd quarter. Invesco Ltd. now owns 93,366 shares of the company's stock worth $16,736,000 after acquiring an additional 86,233 shares during the last quarter. Finally, AQR Capital Management LLC boosted its stake in shares of Sezzle by 3,973.6% in the 1st quarter. AQR Capital Management LLC now owns 34,626 shares of the company's stock valued at $1,208,000 after purchasing an additional 33,776 shares in the last quarter. Hedge funds and other institutional investors own 2.02% of the company's stock.

About Sezzle

Sezzle Inc operates as a technology-enabled payments company primarily in the United States and Canada. The company provides payment solution in-store and at online retail stores; and through proprietary payments solution that connects consumers with merchants. It also offers Sezzle Platform that provides a payments solution for consumers that extends credit at the point-of-sale allowing consumers to purchase and receive the ordered merchandise at the time of sale while paying in installments over time; Pay-in-Four, which allows consumers to pay a fourth of the purchase price up front and then another fourth of the purchase price every two weeks thereafter over a total of six weeks; Pay-in-Full that allows consumers to pay for the full value of their order up-front through the Sezzle Platform without the extension of credit; and Pay-in-Two and other alternative installment options, which allow consumer to pay half of the value of their order up-front and the second half in two weeks.

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