Stock Traders Buy High Volume of Klarna Group Put Options (NYSE:KLAR)

Key Points

• Investors bought an unusually large volume of put options — 23,461 puts on Friday, about 127% above the average — signaling increased bearish sentiment or hedging interest in KLAR.
• Several analysts cut targets (Morgan Stanley to $23, Wells Fargo to $32, JPMorgan to $20), yet the consensus remains a “Moderate Buy” with an average target of $38.33 (11 Buys, 6 Holds, 1 Sell).
• KLAR traded down 4.1% to $12.32, near its 12‑month low and below its 50‑ and 200‑day averages, after an earnings miss (EPS -$0.12 vs. -$0.03) and continued negative margins and ROE.

Klarna Group plc (NYSE:KLAR - Get Free Report) saw unusually large options trading activity on Friday. Investors purchased 23,461 put options on the company. This represents an increase of approximately 127% compared to the average volume of 10,316 put options.

Analyst Ratings Changes

A number of research firms have weighed in on KLAR. Morgan Stanley reduced their price objective on shares of Klarna Group from $39.00 to $23.00 and set an "equal weight" rating for the company in a research note on Wednesday, February 18th. Weiss Ratings reiterated a "sell (e+)" rating on shares of Klarna Group in a report on Monday, December 29th. Wells Fargo & Company reduced their price target on shares of Klarna Group from $45.00 to $32.00 and set an "overweight" rating for the company in a research report on Friday, February 20th. Wall Street Zen upgraded shares of Klarna Group from a "sell" rating to a "hold" rating in a report on Monday. Finally, JPMorgan Chase & Co. cut their target price on Klarna Group from $40.00 to $20.00 and set an "overweight" rating on the stock in a research note on Friday, February 20th. Eleven research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $38.33.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. OCONNOR A Distinct Business Unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new stake in shares of Klarna Group during the 4th quarter valued at about $72,323,000. Delta Global Management LP bought a new position in shares of Klarna Group in the 4th quarter worth approximately $2,308,000. XTX Topco Ltd boosted its holdings in shares of Klarna Group by 132.8% in the fourth quarter. XTX Topco Ltd now owns 87,353 shares of the company's stock worth $2,525,000 after buying an additional 49,837 shares during the last quarter. Prana Capital Management LP purchased a new position in shares of Klarna Group in the fourth quarter worth approximately $629,000. Finally, Quadrature Capital Ltd bought a new stake in Klarna Group during the fourth quarter valued at approximately $1,120,000.

Klarna Group Trading Down 4.1%

KLAR stock traded down $0.53 on Friday, hitting $12.32. The company had a trading volume of 3,298,600 shares, compared to its average volume of 6,053,589. Klarna Group has a 12-month low of $12.25 and a 12-month high of $57.20. The stock has a market cap of $4.65 billion and a price-to-earnings ratio of -15.99. The stock's 50-day simple moving average is $18.32 and its 200 day simple moving average is $29.10.

Klarna Group (NYSE:KLAR - Get Free Report) last announced its earnings results on Saturday, February 14th. The company reported ($0.12) earnings per share for the quarter, missing analysts' consensus estimates of ($0.03) by ($0.09). The company had revenue of $0.87 million for the quarter. Klarna Group had a negative net margin of 8.41% and a negative return on equity of 11.62%. The firm's revenue for the quarter was up 38.5% compared to the same quarter last year.

About Klarna Group

Klarna Group is a global payments provider specializing in “buy now, pay later” (BNPL) solutions for online and in-store shoppers. The company partners with merchants to offer flexible payment options, including interest-free installments and deferred payments, aiming to enhance conversion rates and customer loyalty. Klarna’s platform integrates risk assessment, fraud prevention, and a one-click checkout experience to streamline transactions for both retailers and consumers.

Through its digital wallet and mobile app, Klarna enables users to manage purchases, track spending and access exclusive shopping offers from partner merchants.

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