Sezzle (NASDAQ:SEZL) Trading Up 8.6% - Should You Buy?

Key Points

• Sezzle shares rose 8.6% in Tuesday trading, reaching an intraday high of $171.57 and last trading around $173.95, well above the prior close of $160.25.
• Analysts remain mixed on the stock: recent target increases came from TD Cowen, Needham, and KBW, but others downgraded or held ratings. The consensus rating is “Moderate Buy” with an average price target of $151.33.
• The company reported strong Q1 results, beating earnings and revenue estimates with EPS of $1.43 and revenue of $135.54 million, while revenue grew 29.2% year over year. However, insiders have also been selling shares in recent months.

Sezzle Inc. (NASDAQ:SEZL - Get Free Report)'s stock price was up 8.6% during mid-day trading on Tuesday . The stock traded as high as $171.57 and last traded at $173.9530. 265,724 shares changed hands during trading, a decline of 64% from the average session volume of 735,776 shares. The stock had previously closed at $160.25.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the company. TD Cowen lifted their target price 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 research note on Monday, June 29th. Needham & Company LLC reaffirmed a "buy" rating and set a $166.00 price objective (up from $132.00) on shares of Sezzle in a report on Thursday, June 18th. Freedom Capital upgraded shares of Sezzle to a "hold" rating in a research report on Wednesday, June 24th. Finally, Keefe, Bruyette & Woods reissued a "market perform" rating and issued a $190.00 target price (up from $115.00) on shares of Sezzle in a report on Monday. One 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 stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $151.33.

Sezzle Price Performance

The firm has a market cap of $5.92 billion, a PE ratio of 41.90 and a beta of 6.70. The firm has a fifty day simple moving average of $133.34 and a two-hundred day simple moving average of $91.84. 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 issued its quarterly earnings data on Wednesday, May 6th. The company reported $1.43 earnings per share (EPS) for the quarter, topping 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 business had revenue of $135.54 million for the quarter, compared to analysts' expectations of $127.74 million. During the same period in the prior year, the firm earned $0.98 EPS. The company's revenue for the quarter was up 29.2% on a year-over-year basis. Sezzle has set its FY 2026 guidance at 5.100-5.100 EPS. Equities analysts predict that Sezzle Inc. will post 5.1 EPS for the current fiscal year.

Insider Buying and Selling at Sezzle

In other news, CFO Lee Dickson Brading sold 10,000 shares of the business'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 sale, the chief financial officer directly owned 296,931 shares in the company, valued at $52,922,012.13. The trade was a 3.26% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at 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 the company's stock in a transaction dated 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 in the company, valued at $67,153,063.25. This represents a 5.96% 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 sold 124,382 shares of company stock worth $17,416,662 in the last ninety days. Company insiders own 49.49% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Accredited Investors Inc. purchased a new stake in Sezzle during the fourth quarter valued at approximately $57,955,000. Divisadero Street Capital Management LP boosted its holdings in shares of Sezzle by 64.7% in the 3rd quarter. Divisadero Street Capital Management LP now owns 1,494,617 shares of the company's stock worth $118,867,000 after purchasing an additional 587,129 shares during the period. Man Group plc bought a new position in shares of Sezzle during the 3rd quarter valued at approximately $25,005,000. Price T Rowe Associates Inc. MD increased its position in shares of Sezzle by 213.8% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 378,185 shares of the company's stock valued at $24,004,000 after purchasing an additional 257,659 shares during the last quarter. Finally, Bank of America Corp DE raised its holdings in Sezzle by 296.1% during the 1st quarter. Bank of America Corp DE now owns 326,063 shares of the company's stock valued at $20,637,000 after buying an additional 243,747 shares during the period. 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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