Sezzle (NASDAQ:SEZL) Upgraded to Strong-Buy at Zacks Research

Key Points

• Zacks Research upgraded Sezzle from hold to strong-buy, adding to a generally bullish analyst backdrop. MarketBeat now shows a consensus rating of Moderate Buy with a $118 target price.
• Sezzle reported Q1 earnings of $1.43 per share, beating estimates of $1.24, while revenue of $135.54 million also topped forecasts. Revenue rose 29.2% year over year, and the company guided FY2026 EPS to 5.10.
• Despite the positive outlook, insiders sold shares recently, including SVP Justin Krause and Director Paul Paradis. The stock also traded around $119 after a strong run, near its recent highs.

Sezzle (NASDAQ:SEZL - Get Free Report) was upgraded by equities researchers at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued to investors on Wednesday,Zacks.com reports.

A number of other equities research analysts have also weighed in on SEZL. Keefe, Bruyette & Woods boosted their target price on shares of Sezzle from $85.00 to $115.00 and gave the company an "outperform" rating in a research note on Thursday, May 7th. TD Cowen reiterated a "hold" rating on shares of Sezzle in a research note on Thursday, May 7th. Needham & Company LLC boosted their target price on shares of Sezzle from $94.00 to $122.00 and gave the company a "buy" rating in a research note on Thursday, May 7th. UBS Group set a $76.00 target price on shares of Sezzle in a research note on Tuesday, February 17th. Finally, Weiss Ratings upgraded shares of Sezzle from a "hold (c-)" rating to a "hold (c+)" rating in a research note on Thursday, May 7th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $118.00.

Sezzle Price Performance

Shares of SEZL opened at $119.00 on Wednesday. The firm has a market cap of $4.00 billion, a PE ratio of 28.27 and a beta of 6.91. The company has a current ratio of 3.65, a quick ratio of 3.65 and a debt-to-equity ratio of 0.73. The firm has a fifty day simple moving average of $82.34 and a two-hundred day simple moving average of $71.97. Sezzle has a 1-year low of $49.50 and a 1-year high of $186.74.

Sezzle (NASDAQ:SEZL - Get Free Report) last announced its earnings results on Wednesday, May 6th. The company reported $1.43 earnings per share for the quarter, beating analysts' consensus estimates of $1.24 by $0.19. The business had revenue of $135.54 million during the quarter, compared to analyst estimates of $127.74 million. Sezzle had a net margin of 30.83% and a return on equity of 87.46%. The company's quarterly revenue was up 29.2% compared to the same quarter last year. During the same period in the previous year, the business earned $0.98 EPS. Sezzle has set its FY 2026 guidance at 5.100-5.100 EPS. On average, equities analysts anticipate that Sezzle will post 5.09 EPS for the current year.

Insider Transactions at Sezzle

In other news, SVP Justin Krause sold 11,822 shares of the company's stock in a transaction on Thursday, May 7th. The stock was 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 directly owned 67,635 shares in the company, valued at $7,200,422.10. This represents a 14.88% decrease in their position. The transaction was disclosed in a document filed 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 25,439 shares of the company's stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $103.30, for a total value of $2,627,848.70. Following the completion of the sale, the director owned 449,956 shares of the company's stock, valued at $46,480,454.80. This trade represents a 5.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 57,891 shares of company stock worth $5,364,566 over the last three months. 49.49% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Sezzle

Several hedge funds and other institutional investors have recently modified their holdings of the stock. UBS Group AG boosted its holdings in Sezzle by 113.9% in the 4th quarter. UBS Group AG now owns 114,426 shares of the company's stock worth $7,263,000 after buying an additional 60,937 shares during the period. IMC Chicago LLC bought a new position in Sezzle in the 3rd quarter worth $1,575,000. State of Alaska Department of Revenue bought a new position in Sezzle in the 4th quarter worth $1,017,000. Hussman Strategic Advisors Inc. boosted its holdings in Sezzle by 38.9% in the 4th quarter. Hussman Strategic Advisors Inc. now owns 52,500 shares of the company's stock worth $3,332,000 after buying an additional 14,700 shares during the period. Finally, Divisadero Street Capital Management LP boosted its holdings in shares of Sezzle by 64.7% during the 3rd quarter. Divisadero Street Capital Management LP now owns 1,494,617 shares of the company's stock valued at $118,867,000 after purchasing an additional 587,129 shares during the last quarter. 2.02% of the stock is currently owned by hedge funds and other institutional investors.

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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