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

Key Points

• Sezzle Inc. shares gapped down from $89.10 to $86.68 prior to Thursday's trading, with a last trade at $86.81 and a volume of 196,264 shares.
• Analysts have mixed views on Sezzle, with Oppenheimer increasing its price target to $202.00 and TD Cowen issuing a "hold" rating with an $82.00 target, while the stock maintains a Moderate Buy rating from analysts.
• Sezzle reported earnings per share of $0.69, exceeding estimates, but fell short on revenue with $60.31 million compared to expected $93.33 million.

Shares of Sezzle Inc. (NASDAQ:SEZL - Get Free Report) gapped down prior to trading on Thursday . The stock had previously closed at $89.10, but opened at $86.68. Sezzle shares last traded at $86.81, with a volume of 196,264 shares changing hands.

Analyst Ratings Changes

SEZL has been the subject of several research reports. Oppenheimer upped their price target on shares of Sezzle from $168.00 to $202.00 and gave the company an "outperform" rating in a research report on Wednesday, July 2nd. TD Cowen initiated coverage on shares of Sezzle in a research report on Thursday. They issued a "hold" rating and a $82.00 price target for the company. B. Riley upped their price target on shares of Sezzle from $101.00 to $111.00 and gave the company a "buy" rating in a research report on Monday, August 11th. Finally, Wall Street Zen cut shares of Sezzle from a "buy" rating to a "hold" rating in a research note on Saturday, August 16th. Three analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $113.75.

Sezzle Price Performance

The company has a market capitalization of $2.97 billion, a price-to-earnings ratio of 29.88 and a beta of 9.02. The company's 50 day simple moving average is $121.24 and its 200-day simple moving average is $91.81. The company has a current ratio of 3.51, a quick ratio of 3.51 and a debt-to-equity ratio of 1.00.

Sezzle (NASDAQ:SEZL - Get Free Report) last released its quarterly 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. Sezzle had a net margin of 28.13% and a return on equity of 102.90%. The company had revenue of $60.31 million for the quarter, compared to analysts' expectations of $93.33 million. On average, equities research analysts predict that Sezzle Inc. will post 9.77 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, COO Amin Sabzivand sold 6,028 shares of the firm's stock in a transaction that occurred on 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 directly owned 243,303 shares of the company's stock, valued at approximately $39,957,651.69. This trade represents a 2.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Karen Hartje sold 5,484 shares of the firm's stock in a transaction that occurred 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 completion of the sale, the chief financial officer directly owned 126,846 shares in the company, valued at $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 three months, insiders have sold 65,484 shares of company stock valued at $10,050,690. Insiders own 49.49% of the company's stock.

Institutional Trading of Sezzle

A number of hedge funds have recently made changes to their positions in SEZL. BNP PARIBAS ASSET MANAGEMENT Holding S.A. acquired a new position in Sezzle in the second quarter worth $29,000. Spire Wealth Management acquired a new position in shares of Sezzle during the second quarter valued at $32,000. Farther Finance Advisors LLC acquired a new position in shares of Sezzle during the second quarter valued at $33,000. CWM LLC boosted its holdings in shares of Sezzle by 49,400.0% during the first quarter. CWM LLC now owns 990 shares of the company's stock valued at $35,000 after acquiring an additional 988 shares during the period. Finally, Sound Income Strategies LLC acquired a new position in shares of Sezzle during the second quarter valued at $40,000. Institutional investors and hedge funds 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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