Sezzle (NASDAQ:SEZL) Shares Gap Down on Analyst Downgrade

Key Points

• Sezzle shares plunged after an analyst downgrade: Keefe, Bruyette & Woods cut its price target from $190 to $155 and assigned a “Market Perform” rating. Shares opened at $132.36 after closing at $178.53 and later traded near $121.05.
• Quarterly results exceeded expectations and guidance was raised: Sezzle reported adjusted EPS of $1.13 versus the $1.03 consensus and revenue of $149.68 million versus $135.09 million expected. Management forecasts 2026 EPS of $5.25 and revenue of approximately $607.9 million.
• Investor sentiment remains mixed: The stock’s consensus rating is “Moderate Buy” with an average target of $146.50, but analysts cited valuation and high expectations after a roughly 106% three-month rally. Insiders have sold $13.5 million of stock over the past 90 days.

Sezzle Inc. (NASDAQ:SEZL - Get Free Report) shares gapped down before the market opened on Friday after Keefe, Bruyette & Woods lowered their price target on the stock from $190.00 to $155.00. The stock had previously closed at $178.53, but opened at $132.36. Keefe, Bruyette & Woods currently has a market perform rating on the stock. Sezzle shares last traded at $121.05, with a volume of 823,530 shares changing hands.

SEZL has been the topic of several other research reports. TD Cowen boosted their target price on shares of Sezzle from $108.00 to $165.00 and gave the stock a "hold" rating in a research report on Tuesday, July 7th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Sezzle in a report on Tuesday. Oppenheimer downgraded shares of Sezzle from an "outperform" rating to a "market perform" rating in a research note on Monday, June 29th. Zacks Research raised shares of Sezzle from a "hold" rating to a "strong-buy" rating in a report on Wednesday, May 27th. 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 issued a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $146.50.

Insider Transactions at Sezzle

In other Sezzle news, SVP Justin Krause sold 3,178 shares of Sezzle stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $117.72, for a total transaction of $374,114.16. Following the completion of the sale, the senior vice president directly owned 72,457 shares in the company, valued at approximately $8,529,638.04. The trade was a 4.20% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through 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 Sezzle stock in a transaction that occurred on 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 sale, the director owned 416,195 shares of the company's stock, valued at approximately $67,153,063.25. The trade was a 5.96% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 86,928 shares of company stock worth $13,510,889 in the last ninety days. Corporate insiders own 49.49% of the company's stock.

Key Headlines Impacting Sezzle

Here are the key news stories impacting Sezzle this week:

• Positive Sentiment: Q2 earnings and revenue exceeded expectations. Sezzle reported adjusted earnings of $1.13 per share, above the $1.03 consensus estimate, while revenue reached $149.68 million versus expectations of $135.09 million. Earnings also increased from $0.69 per share a year earlier. Sezzle Reports Second Quarter 2026 Results
• Positive Sentiment: Management raised its full-year 2026 outlook. Sezzle now expects EPS of $5.25, ahead of the approximately $5.11 analyst consensus, and revenue of about $607.9 million, above the $596 million consensus. The improved outlook supports the company’s growth narrative. Sezzle stock slumps after Q2 earnings beat; guidance raised
• Positive Sentiment: Needham raised its price target and maintained a bullish view. Needham & Company increased its target from $166 to $172 and assigned a “Buy” rating, implying substantial potential upside from the reference price. Benzinga analyst action
• Neutral Sentiment: Analyst opinion is becoming more divided. Keefe, Bruyette & Woods cut its price target from $190 to $155 and changed its view to “Market Perform,” although its revised target still implies upside. Benzinga analyst action
• Negative Sentiment: The strong results did not meet the market’s very high expectations. Coverage highlighted that Sezzle had rallied roughly 106% over three months before earnings, leaving the stock vulnerable to profit-taking and concerns about valuation and margin sustainability. The post-earnings selloff suggests investors may be demanding more than an earnings beat and modest guidance increase. Sezzle delivers strong Q2 numbers but stock drops

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vestcor Inc purchased a new position in shares of Sezzle during the 3rd quarter valued at about $29,000. Covestor Ltd lifted its holdings in shares of Sezzle by 109.4% in the 4th quarter. Covestor Ltd now owns 490 shares of the company's stock valued at $31,000 after buying an additional 256 shares during the period. Empowered Funds LLC purchased a new stake in shares of Sezzle in the fourth quarter worth about $33,000. Versant Capital Management Inc grew its holdings in Sezzle by 245.9% during the second quarter. Versant Capital Management Inc now owns 256 shares of the company's stock worth $44,000 after acquiring an additional 182 shares during the period. Finally, Strengthening Families & Communities LLC acquired a new stake in Sezzle during the fourth quarter worth about $49,000. 2.02% of the stock is currently owned by institutional investors and hedge funds.

Sezzle Stock Performance

The company has a market capitalization of $4.01 billion, a PE ratio of 28.51 and a beta of 6.76. The firm has a 50-day moving average of $157.17 and a two-hundred day moving average of $104.21. 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 (NASDAQ:SEZL - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported $1.13 EPS for the quarter, topping the consensus estimate of $1.03 by $0.10. The business had revenue of $149.68 million for the quarter, compared to analyst estimates of $135.09 million. Sezzle had a return on equity of 87.46% and a net margin of 30.83%.Sezzle has set its FY 2026 guidance at 5.250-5.250 EPS. Research analysts anticipate that Sezzle Inc. will post 5.1 EPS for the current year.

About Sezzle

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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