Sezzle (NASDAQ:SEZL) Trading Down 7.1% - Here's What Happened

Key Points

• Sezzle shares fell 7.1% on Thursday, trading as low as $157 before last changing hands at $161.84, well below the prior close of $174.24. Trading volume was also far lighter than usual, with about 142,749 shares changing hands.
• Analyst sentiment remains mixed but generally positive: several firms have recently raised price targets, and the stock now carries an average rating of “Moderate Buy” with an average target price of $151.33.
• Despite the pullback, Sezzle recently posted strong quarterly results, beating EPS and revenue estimates with 29.2% year-over-year revenue growth. The company also reported notable insider selling in recent months, including sales by its SVP and CFO.

Sezzle Inc. (NASDAQ:SEZL - Get Free Report)'s stock price traded down 7.1% during mid-day trading on Thursday . The company traded as low as $157.00 and last traded at $161.8420. 142,749 shares changed hands during trading, a decline of 80% from the average session volume of 731,353 shares. The stock had previously closed at $174.24.

Wall Street Analysts Forecast Growth

SEZL has been the topic of a number of recent analyst reports. Weiss Ratings upgraded shares of Sezzle from a "hold (c-)" rating to a "hold (c+)" rating in a research note on Thursday, May 7th. Northland Securities set a $170.00 price target on shares of Sezzle in a research report on Thursday, June 25th. TD Cowen increased their price objective on shares of Sezzle from $108.00 to $165.00 and gave the stock a "hold" rating in a research note on Tuesday, July 7th. B. Riley Financial reissued a "buy" rating and issued a $141.00 price objective (up from $117.00) on shares of Sezzle in a research note on Tuesday, June 2nd. Finally, Keefe, Bruyette & Woods restated a "market perform" rating and set a $190.00 price objective (up from $115.00) on shares of Sezzle in a research report on Monday, July 13th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $151.33.

Sezzle Stock Performance

The company has a quick ratio of 3.65, a current ratio of 3.65 and a debt-to-equity ratio of 0.73. The business has a 50 day moving average price of $144.96 and a two-hundred day moving average price of $97.29. The stock has a market cap of $5.41 billion, a P/E ratio of 38.04 and a beta of 6.70.

Sezzle (NASDAQ:SEZL - Get Free Report) last issued its earnings results on Wednesday, May 6th. The company reported $1.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.24 by $0.19. Sezzle had a return on equity of 87.46% and a net margin of 30.83%.The company had revenue of $135.54 million for the quarter, compared to the consensus estimate of $127.74 million. During the same quarter last year, the company earned $0.98 EPS. The firm's quarterly revenue was up 29.2% on a year-over-year basis. Sezzle has set its FY 2026 guidance at 5.100-5.100 EPS. On average, sell-side analysts forecast that Sezzle Inc. will post 5.1 earnings per share for the current fiscal year.

Insider Activity at Sezzle

In other news, SVP Justin Krause sold 3,178 shares of the business's stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $117.72, for a total value of $374,114.16. Following the transaction, the senior vice president owned 72,457 shares of the company's stock, valued at approximately $8,529,638.04. The trade was a 4.20% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Lee Dickson Brading sold 10,000 shares of the company's stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $178.23, for a total transaction of $1,782,300.00. Following the transaction, the chief financial officer owned 296,931 shares of the company's stock, valued at approximately $52,922,012.13. This represents a 3.26% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 124,382 shares of company stock worth $17,416,662. 49.49% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Handelsbanken Fonder AB increased its holdings in shares of Sezzle by 23.9% in the second quarter. Handelsbanken Fonder AB now owns 5,700 shares of the company's stock worth $978,000 after purchasing an additional 1,100 shares during the last quarter. Bay Rivers Group bought a new position in Sezzle during the second quarter valued at approximately $319,000. Focus Financial Network Inc. bought a new position in Sezzle during the second quarter valued at approximately $2,493,000. GK Wealth Management LLC purchased a new position in Sezzle during the 2nd quarter valued at approximately $531,000. Finally, GAMMA Investing LLC grew its holdings in Sezzle by 12.8% during the 2nd quarter. GAMMA Investing LLC now owns 890 shares of the company's stock valued at $153,000 after buying an additional 101 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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