Sezzle (NASDAQ:SEZL) Shares Up 5% - Here's Why

Key Points

• Sezzle Inc. shares rose by 5% on Friday, reaching a trading high of $152.00 before closing at $147.81, though trading volume decreased significantly to 354,966 shares.
• Wall Street analysts remain optimistic, with Oppenheimer raising its price target from $168.00 to $202.00, while Wall Street Zen downgraded Sezzle from a "strong-buy" to a "buy" rating.
• Recent insider transactions revealed that Sezzle executives sold significant shares, with over 501,000 shares sold in the past three months valued at approximately $43.5 million, indicating potential caution amongst insiders.
• Institutional investor interest is growing, as several firms have significantly increased their positions in Sezzle, reflecting confidence in the company’s growth potential.

Sezzle Inc. (NASDAQ:SEZL - Get Free Report)'s share price rose 5% during mid-day trading on Friday . The stock traded as high as $152.00 and last traded at $147.81. Approximately 354,966 shares traded hands during trading, a decline of 65% from the average daily volume of 1,011,307 shares. The stock had previously closed at $140.72.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on SEZL. Wall Street Zen lowered shares of Sezzle from a "strong-buy" rating to a "buy" rating in a report on Thursday, May 22nd. Oppenheimer boosted their price objective on shares of Sezzle from $168.00 to $202.00 and gave the stock an "outperform" rating in a report on Wednesday, July 2nd.

Sezzle Trading Down 2.8%

The stock's fifty day moving average price is $138.79 and its two-hundred day moving average price is $78.76. The company has a current ratio of 2.62, a quick ratio of 2.62 and a debt-to-equity ratio of 0.56. The stock has a market capitalization of $4.74 billion, a P/E ratio of 48.11 and a beta of 9.16.

Insider Activity at Sezzle

In other news, Director Paul Paradis sold 3,000 shares of the company's stock in a transaction dated Tuesday, July 22nd. The shares were sold at an average price of $135.34, for a total value of $406,020.00. Following the sale, the director directly owned 254,000 shares of the company's stock, valued at $34,376,360. This represents a 1.17% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Amin Sabzivand sold 6,028 shares of the company's stock in a transaction dated Friday, June 27th. The stock was sold at an average price of $164.23, for a total transaction of $989,978.44. Following the completion of the sale, the chief operating officer directly owned 243,303 shares in the company, valued at $39,957,651.69. This represents a 2.42% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 501,092 shares of company stock worth $43,533,756 in the last three months. 49.49% of the stock is owned by insiders.

Institutional Trading of Sezzle

Hedge funds and other institutional investors have recently modified their holdings of the business. Meeder Asset Management Inc. purchased a new stake in Sezzle during the 4th quarter valued at about $31,000. Federated Hermes Inc. lifted its stake in shares of Sezzle by 3,575.0% in the 4th quarter. Federated Hermes Inc. now owns 147 shares of the company's stock worth $38,000 after purchasing an additional 143 shares during the period. Farther Finance Advisors LLC bought a new position in shares of Sezzle in the 2nd quarter worth approximately $33,000. Sound Income Strategies LLC bought a new position in shares of Sezzle in the 2nd quarter worth approximately $40,000. Finally, Tower Research Capital LLC TRC raised its stake in Sezzle by 94.7% during the 4th quarter. Tower Research Capital LLC TRC now owns 407 shares of the company's stock worth $104,000 after acquiring an additional 198 shares during the period. 2.02% of the stock is owned by hedge funds and other institutional investors.

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.