Sezzle (NASDAQ:SEZL) Trading Down 5.6% - Should You Sell?

Key Points

• Sezzle shares fell 5.6% to about $121.71 in light trading, while the stock remains highly volatile with a beta of 6.76 and trades below its 50-day moving average.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $146.50, despite one firm lowering its target to $155.
• Sezzle beat quarterly expectations, reporting $1.13 in EPS versus $1.03 expected and revenue of $149.68 million versus $135.09 million forecast; however, insiders have sold roughly $13.5 million in stock over the past 90 days.

Shares of Sezzle Inc. (NASDAQ:SEZL - Get Free Report) traded down 5.6% on Monday . The stock traded as low as $121.53 and last traded at $121.7050. Approximately 124,288 shares changed hands during mid-day trading, a decline of 83% from the average daily volume of 747,719 shares. The stock had previously closed at $128.96.

Analyst Upgrades and Downgrades

SEZL has been the topic of several recent analyst reports. Needham & Company LLC raised their target price on shares of Sezzle from $166.00 to $172.00 and gave the stock a "buy" rating in a report on Friday, August 7th. Zacks Research raised shares of Sezzle from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, May 27th. Keefe, Bruyette & Woods cut their price target on shares of Sezzle from $190.00 to $155.00 and set a "market perform" rating on the stock in a report on Friday, August 7th. Northland Securities set a $170.00 price objective on shares of Sezzle in a research report on Thursday, June 25th. Finally, Freedom Capital raised shares of Sezzle to a "hold" rating in a research note on Wednesday, June 24th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $146.50.

Sezzle Stock Down 5.4%

The company has a debt-to-equity ratio of 0.52, a current ratio of 4.02 and a quick ratio of 4.02. The stock has a market capitalization of $4.11 billion, a PE ratio of 26.63 and a beta of 6.76. The company has a 50 day moving average price of $157.95 and a 200-day moving average price of $106.64.

Sezzle (NASDAQ:SEZL - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The company reported $1.13 EPS for the quarter, topping analysts' consensus estimates of $1.03 by $0.10. The company had revenue of $149.68 million during the quarter, compared to analyst estimates of $135.09 million. Sezzle had a return on equity of 83.48% and a net margin of 30.35%.Sezzle has set its FY 2026 guidance at 5.250-5.250 EPS. As a group, analysts forecast that Sezzle Inc. will post 5.24 earnings per share for the current fiscal year.

Insider Activity at Sezzle

In other Sezzle news, CFO Lee Dickson Brading sold 10,000 shares of the firm's stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $178.23, for a total value of $1,782,300.00. Following the completion of the sale, the chief financial officer directly owned 296,931 shares in the company, valued at $52,922,012.13. This trade represents a 3.26% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. 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 Friday, June 12th. The shares were sold at an average price of $133.47, for a total value of $3,523,608.00. Following the sale, the director directly owned 442,595 shares in the company, valued at approximately $59,073,154.65. The trade was a 5.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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 over the last ninety days. Corporate insiders own 49.49% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in SEZL. BlackRock Inc. purchased a new stake in Sezzle in the second quarter worth $436,497,000. Vanguard Group Inc. boosted its holdings in shares of Sezzle by 16.9% during the 4th quarter. Vanguard Group Inc. now owns 1,188,883 shares of the company's stock valued at $75,464,000 after buying an additional 172,115 shares in the last quarter. Accredited Investors Inc. bought a new stake in shares of Sezzle during the 4th quarter valued at $57,955,000. State Street Corp grew its position in shares of Sezzle by 59.1% in the 4th quarter. State Street Corp now owns 600,656 shares of the company's stock worth $38,127,000 after buying an additional 223,052 shares during the period. Finally, Geode Capital Management LLC increased its stake in shares of Sezzle by 2.2% in the 4th quarter. Geode Capital Management LLC now owns 489,382 shares of the company's stock worth $31,068,000 after acquiring an additional 10,625 shares in the last quarter. Hedge funds and other institutional investors own 2.02% of the company's stock.

Sezzle Company Profile

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.

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