Sezzle Sees Unusually Large Options Volume (NASDAQ:SEZL)

Key Points

• Sezzle saw unusually heavy options activity on Wednesday, with investors buying 2,687 call options, about 60% above the stock’s typical daily call volume.
• Analyst sentiment remains positive overall: Zacks upgraded Sezzle to strong-buy, while B. Riley lifted its price target to $141; the consensus rating is now Moderate Buy with an average target of $123.
• The stock jumped 5.2% to $151.73, and the company recently reported strong quarterly results, including $1.43 EPS versus $1.24 expected and revenue growth of 29.2% year over year.

Sezzle Inc. (NASDAQ:SEZL - Get Free Report) was the target of unusually large options trading activity on Wednesday. Stock investors bought 2,687 call options on the company. This is an increase of 60% compared to the typical daily volume of 1,682 call options.

Analyst Upgrades and Downgrades

SEZL has been the subject of several research reports. Zacks Research upgraded Sezzle from a "hold" rating to a "strong-buy" rating in a report on Wednesday, May 27th. Needham & Company LLC raised their target price on shares of Sezzle from $94.00 to $122.00 and gave the company a "buy" rating in a research report on Thursday, May 7th. Weiss Ratings raised shares of Sezzle from a "hold (c-)" rating to a "hold (c+)" rating in a research report on Thursday, May 7th. UBS Group set a $76.00 target price on shares of Sezzle in a research report on Tuesday, February 17th. Finally, B. Riley Financial restated a "buy" rating and set a $141.00 target price (up from $117.00) on shares of Sezzle in a report on Tuesday, June 2nd. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $123.00.

Insider Buying and Selling

In other news, Director Paul Paradis sold 26,400 shares of the firm's stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $133.47, for a total transaction of $3,523,608.00. Following the transaction, the director directly owned 442,595 shares of the company's stock, valued at approximately $59,073,154.65. This trade represents a 5.63% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Justin Krause sold 11,822 shares of the firm's stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $106.46, for a total transaction of $1,258,570.12. Following the transaction, the senior vice president directly owned 67,635 shares in the company, valued at approximately $7,200,422.10. This trade represents a 14.88% 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. Over the last ninety days, insiders have sold 67,032 shares of company stock worth $7,803,495. Corporate insiders own 49.49% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vestcor Inc purchased a new position in shares of Sezzle in the 3rd quarter valued at approximately $29,000. Covestor Ltd grew its holdings in shares of Sezzle by 109.4% during the fourth quarter. Covestor Ltd now owns 490 shares of the company's stock valued at $31,000 after buying an additional 256 shares during the last quarter. Empowered Funds LLC purchased a new stake in shares of Sezzle during the fourth quarter valued at $33,000. Sunbelt Securities Inc. purchased a new stake in shares of Sezzle during the third quarter valued at $52,000. Finally, Strengthening Families & Communities LLC purchased a new stake in shares of Sezzle during the fourth quarter valued at $49,000. 2.02% of the stock is currently owned by hedge funds and other institutional investors.

Sezzle Stock Up 5.2%

SEZL traded up $7.53 on Wednesday, hitting $151.73. The company had a trading volume of 238,300 shares, compared to its average volume of 741,505. The stock has a fifty day moving average price of $97.69 and a 200-day moving average price of $78.44. Sezzle has a 12-month low of $49.50 and a 12-month high of $186.74. The company has a debt-to-equity ratio of 0.73, a quick ratio of 3.65 and a current ratio of 3.65. The stock has a market capitalization of $5.10 billion, a price-to-earnings ratio of 36.04 and a beta of 6.96.

Sezzle (NASDAQ:SEZL - Get Free Report) last posted 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 analyst estimates of $127.74 million. During the same quarter in the previous year, the firm earned $0.98 earnings per share. The firm's quarterly 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 will post 5.09 EPS for the current fiscal year.

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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