Klarna Group (NYSE:KLAR) Shares Up 7.9% – Should You Buy?

Klarna Group plc (NYSE:KLAR) shares were up 7.9% on Tuesday . The company traded as high as $19.64 and last traded at $19.5490. Approximately 2,298,258 shares traded hands during trading, a decline of 26% from the average daily volume of 3,112,165 shares. The stock had previously closed at $18.11.

Klarna Group News Roundup

Here are the key news stories impacting Klarna Group this week:

• Positive Sentiment: Klarna launched its BNPL option on Google Pay in the U.K., expanding checkout distribution and potentially boosting merchant reach and transacting volume in a core market. Klarna Launches on Google Pay in the UK
• Positive Sentiment: Unusual options activity: traders bought ~64,250 call options (a >1,200% jump vs. average), indicating speculative bullish bets or hedging that can drive short-term upside and intraday volume. (Options activity reported 2/17)
• Positive Sentiment: Analyst/preview note: Zacks flagged expected Q4 revenue growth (~18.5%) and large GMV (~$38B), with consumer receivables likely increased — data points investors watch ahead of results that could re-accelerate confidence if met. Klarna Set to Report Q4 Earnings
• Neutral Sentiment: CEO comment on workforce: Klarna’s CEO said headcount could fall below 2,000 by 2030 (from ~3,000 today) due to AI and hiring freezes — signals potential long-term cost efficiency but also uncertainty around execution and customer impact. Klarna CEO workforce comments
• Neutral Sentiment: Market commentary: outlets are re-evaluating KLAR after a recent deep pullback (articles asking if shares merit a relook); these pieces can attract bargain hunters or short-term traders but don’t change fundamentals by themselves. Is Klarna Worth Another Look?
• Negative Sentiment: Multiple law firms have filed or are soliciting lead-plaintiff candidates in a securities-class-action alleging IPO misstatements (deadline Feb 20). Numerous notices from Hagens Berman, Rosen, Pomerantz, Bernstein Liebhard, Schall, and others increase legal overhang and could pressure the stock and valuation until resolved. Hagens Berman class action notice
• Negative Sentiment: Additional class-action solicitations from multiple firms (Frank R. Cruz, DJS, Schall, Faruqi, etc.) reinforce legal risk and may increase potential settlement exposure and management distraction. Frank R. Cruz class action notice

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on KLAR shares. UBS Group cut their target price on Klarna Group from $48.00 to $46.00 and set a “buy” rating on the stock in a research note on Thursday, November 20th. Wall Street Zen raised Klarna Group from a “sell” rating to a “hold” rating in a research report on Saturday, January 31st. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Klarna Group in a research report on Monday, December 29th. Wells Fargo & Company assumed coverage on Klarna Group in a research note on Wednesday, October 22nd. They set an “overweight” rating and a $45.00 target price on the stock. Finally, JPMorgan Chase & Co. reduced their price target on shares of Klarna Group from $50.00 to $45.00 and set an “overweight” rating for the company in a research report on Wednesday, November 19th. Eleven analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $46.60.

Klarna Group Trading Up 6.2%

The business’s 50-day moving average is $27.03. The stock has a market capitalization of $13.80 billion and a P/E ratio of -29.58.

Institutional Trading of Klarna Group

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in KLAR. Walmart Inc. acquired a new position in shares of Klarna Group during the third quarter worth about $87,960,000. WCM Investment Management LLC purchased a new stake in Klarna Group in the 3rd quarter valued at approximately $16,040,000. Robeco Institutional Asset Management B.V. acquired a new position in Klarna Group during the 3rd quarter worth approximately $2,199,000. Dragoneer Investment Group LLC purchased a new position in shares of Klarna Group during the 3rd quarter worth approximately $303,595,000. Finally, Sumitomo Mitsui Trust Group Inc. acquired a new stake in shares of Klarna Group in the 3rd quarter valued at approximately $19,406,000.

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.