Sezzle (NASDAQ:SEZL) Shares Down 9% - Should You Sell?

Key Points

• Sezzle's shares fell 9% on Wednesday, resulting in a trading price decline from a previous close of $151.94 to $138.30, with trading volume decreasing by 74% from average levels.
• Despite the drop, Wall Street analysts continue to forecast growth, with Oppenheimer raising their target price to $202 and maintaining an "outperform" rating.
• Recent insider trading activity indicates significant sales by key executives, including COO Amin Sabzivand and CFO Karen Hartje, who sold shares worth nearly $2 million combined.

Sezzle Inc. (NASDAQ:SEZL - Get Free Report)'s share price dropped 9% on Wednesday . The company traded as low as $139.06 and last traded at $138.30. Approximately 262,994 shares traded hands during mid-day trading, a decline of 74% from the average daily volume of 1,002,189 shares. The stock had previously closed at $151.94.

Wall Street Analysts Forecast Growth

SEZL has been the topic of a number of research reports. Oppenheimer boosted their target price on shares of Sezzle from $168.00 to $202.00 and gave the stock an "outperform" rating in a report on Wednesday, July 2nd. Wall Street Zen cut shares of Sezzle from a "strong-buy" rating to a "buy" rating in a research report on Thursday, May 22nd.

Sezzle Price Performance

The stock has a market cap of $4.64 billion, a price-to-earnings ratio of 46.82 and a beta of 9.09. The stock's 50 day moving average price is $144.39 and its two-hundred day moving average price is $83.08. The company has a quick ratio of 2.62, a current ratio of 2.62 and a debt-to-equity ratio of 0.56.

Insider Activity at Sezzle

In other news, COO Amin Sabzivand sold 6,028 shares of Sezzle stock in a transaction dated Friday, June 27th. The shares were sold at an average price of $164.23, for a total value of $989,978.44. Following the sale, the chief operating officer owned 243,303 shares in the company, valued at $39,957,651.69. This trade represents a 2.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Karen Hartje sold 5,484 shares of the firm's stock in a transaction dated Monday, July 7th. The stock was sold at an average price of $168.02, for a total transaction of $921,421.68. Following the completion of the transaction, the chief financial officer directly owned 126,846 shares in the company, valued at approximately $21,312,664.92. This represents a 4.14% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 504,092 shares of company stock worth $43,975,326. 49.49% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in SEZL. Federated Hermes Inc. boosted its holdings in Sezzle by 3,575.0% in the fourth quarter. Federated Hermes Inc. now owns 147 shares of the company's stock valued at $38,000 after purchasing an additional 143 shares in the last quarter. BNP PARIBAS ASSET MANAGEMENT Holding S.A. purchased a new position in shares of Sezzle in the 2nd quarter valued at about $29,000. Spire Wealth Management purchased a new stake in Sezzle during the second quarter worth about $32,000. Farther Finance Advisors LLC purchased a new stake in Sezzle during the second quarter worth about $33,000. Finally, Sound Income Strategies LLC purchased a new stake in Sezzle during the second quarter worth about $40,000. Institutional investors and hedge funds own 2.02% of the company's stock.

Sezzle Company Profile

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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