Sezzle (NASDAQ:SEZL) Shares Down 4.8% – Should You Sell?

Sezzle Inc. (NASDAQ:SEZL)’s stock price traded down 4.8% during trading on Wednesday . The company traded as low as $72.01 and last traded at $72.6090. 119,247 shares changed hands during trading, a decline of 81% from the average session volume of 618,578 shares. The stock had previously closed at $76.26.

Analysts Set New Price Targets

SEZL has been the topic of several analyst reports. UBS Group set a $110.00 price objective on Sezzle in a research note on Thursday, November 6th. TD Cowen dropped their target price on shares of Sezzle from $83.00 to $82.00 and set a “hold” rating for the company in a research report on Thursday, January 8th. Weiss Ratings restated a “hold (c+)” rating on shares of Sezzle in a research report on Monday, December 29th. Finally, Wall Street Zen cut shares of Sezzle from a “buy” rating to a “hold” rating in a research note on Saturday, December 6th. Two research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $126.25.

Sezzle Trading Down 6.7%

The company has a market capitalization of $2.43 billion, a price-to-earnings ratio of 22.11 and a beta of 8.69. The company has a debt-to-equity ratio of 0.76, a quick ratio of 3.52 and a current ratio of 3.52. The business’s 50-day simple moving average is $65.03 and its 200-day simple moving average is $91.17.

Sezzle (NASDAQ:SEZL) last posted its quarterly earnings results on Wednesday, November 5th. The company reported $0.71 earnings per share for the quarter, topping analysts’ consensus estimates of $0.65 by $0.06. Sezzle had a net margin of 27.66% and a return on equity of 90.06%. The business had revenue of $116.80 million during the quarter, compared to the consensus estimate of $104.70 million. The firm’s revenue for the quarter was up 67.0% on a year-over-year basis. Sezzle has set its FY 2025 guidance at 3.380-3.380 EPS and its FY 2026 guidance at 4.350-4.350 EPS. On average, research analysts expect that Sezzle Inc. will post 9.77 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Kyle M. Brehm acquired 1,217 shares of the firm’s stock in a transaction that occurred on Wednesday, November 12th. The stock was purchased at an average price of $57.50 per share, for a total transaction of $69,977.50. Following the completion of the acquisition, the director owned 24,129 shares in the company, valued at $1,387,417.50. This trade represents a 5.31% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. 49.49% of the stock is owned by insiders.

Hedge Funds Weigh In On Sezzle

Several institutional investors and hedge funds have recently made changes to their positions in the company. Divisadero Street Capital Management LP raised its stake in Sezzle by 64.7% during the 3rd quarter. Divisadero Street Capital Management LP now owns 1,494,617 shares of the company’s stock worth $118,867,000 after buying an additional 587,129 shares during the period. Vanguard Group Inc. raised its position in shares of Sezzle by 4.8% during the third quarter. Vanguard Group Inc. now owns 1,016,768 shares of the company’s stock worth $80,864,000 after purchasing an additional 46,760 shares during the period. Geode Capital Management LLC lifted its holdings in shares of Sezzle by 1.6% during the 2nd quarter. Geode Capital Management LLC now owns 439,799 shares of the company’s stock valued at $78,842,000 after purchasing an additional 7,067 shares in the last quarter. Arrowstreet Capital Limited Partnership bought a new position in shares of Sezzle during the 2nd quarter valued at about $71,770,000. Finally, State Street Corp grew its position in shares of Sezzle by 5.9% in the 2nd quarter. State Street Corp now owns 355,242 shares of the company’s stock valued at $63,677,000 after purchasing an additional 19,706 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.