Sezzle (NASDAQ:SEZL) Trading Down 8.3% - What's Next?

Key Points

• Sezzle shares fell 8.3% on Monday, trading as low as $163 and below the prior close of $179.38, while volume was far lighter than normal.
• Analysts remain mixed: recent reports included price targets ranging from $165 to $190, with the stock carrying an average Moderate Buy rating and a $151.33 consensus target.
• The company has posted strong fundamentals, including Q1 earnings of $1.43 per share versus $1.24 expected and revenue growth of 29.2% year over year, even as insiders have been selling shares recently.

Sezzle Inc. (NASDAQ:SEZL - Get Free Report)'s stock price dropped 8.3% during trading on Monday . The stock traded as low as $163.00 and last traded at $164.4880. Approximately 102,572 shares changed hands during mid-day trading, a decline of 86% from the average daily volume of 733,346 shares. The stock had previously closed at $179.38.

Analyst Upgrades and Downgrades

SEZL has been the topic of a number of research analyst reports. Keefe, Bruyette & Woods restated a "market perform" rating and issued a $190.00 target price (up from $115.00) on shares of Sezzle in a research report on Monday. Northland Securities set a $170.00 price target on shares of Sezzle in a report on Thursday, June 25th. TD Cowen increased their price target on Sezzle from $108.00 to $165.00 and gave the company a "hold" rating in a research note on Tuesday, July 7th. Oppenheimer downgraded Sezzle from an "outperform" rating to a "market perform" rating in a report on Monday, June 29th. Finally, Zacks Research upgraded Sezzle from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, May 27th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, Sezzle presently has an average rating of "Moderate Buy" and an average price target of $151.33.

Sezzle Trading Down 9.5%

The business's fifty day moving average is $131.73 and its 200-day moving average is $91.23. The firm has a market cap of $5.46 billion, a P/E ratio of 38.52 and a beta of 6.70. The company has a debt-to-equity ratio of 0.73, a quick ratio of 3.65 and a current ratio of 3.65.

Sezzle (NASDAQ:SEZL - Get Free Report) last posted its earnings results on Wednesday, May 6th. The company reported $1.43 EPS for the quarter, topping the consensus estimate of $1.24 by $0.19. Sezzle had a net margin of 30.83% and a return on equity of 87.46%. The business had revenue of $135.54 million for the quarter, compared to the consensus estimate of $127.74 million. During the same period last year, the company earned $0.98 EPS. The firm's revenue was up 29.2% compared to the same quarter last year. Sezzle has set its FY 2026 guidance at 5.100-5.100 EPS. Analysts predict that Sezzle Inc. will post 5.1 EPS for the current year.

Insider Buying and Selling at Sezzle

In related news, CFO Lee Dickson Brading sold 10,000 shares of the business's stock in a transaction on 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 sale, the chief financial officer owned 296,931 shares of the company's stock, valued at $52,922,012.13. The trade was a 3.26% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Justin Krause sold 11,822 shares of the stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $106.46, for a total value of $1,258,570.12. Following the completion of the sale, the senior vice president owned 67,635 shares of the company's stock, valued at $7,200,422.10. The trade was a 14.88% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 124,382 shares of company stock worth $17,416,662 in the last three months. 49.49% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Sezzle

Institutional investors and hedge funds have recently made changes to their positions in the stock. Divisadero Street Capital Management LP raised its position in shares of Sezzle by 64.7% during the third quarter. Divisadero Street Capital Management LP now owns 1,494,617 shares of the company's stock worth $118,867,000 after acquiring an additional 587,129 shares during the last quarter. Vanguard Group Inc. boosted its holdings in Sezzle by 16.9% in the fourth quarter. Vanguard Group Inc. now owns 1,188,883 shares of the company's stock valued at $75,464,000 after acquiring an additional 172,115 shares during the last quarter. Accredited Investors Inc. acquired a new stake in Sezzle during the 4th quarter valued at approximately $57,955,000. State Street Corp increased its position in Sezzle by 59.1% during the 4th quarter. State Street Corp now owns 600,656 shares of the company's stock valued at $38,127,000 after purchasing an additional 223,052 shares during the period. Finally, Geode Capital Management LLC increased its position in Sezzle by 2.2% during the 4th quarter. Geode Capital Management LLC now owns 489,382 shares of the company's stock valued at $31,068,000 after purchasing an additional 10,625 shares during the period. Institutional investors and hedge funds own 2.02% of the company's stock.

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.

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