Sezzle (NASDAQ:SEZL) Trading Up 12.6% Following Better-Than-Expected Earnings

Sezzle Inc. (NASDAQ:SEZL)’s stock price rose 12.6% during mid-day trading on Wednesday following a better than expected earnings announcement. The company traded as high as $342.61 and last traded at $328.16. Approximately 126,117 shares traded hands during trading, a decline of 13% from the average daily volume of 145,707 shares. The stock had previously closed at $291.44.

The company reported $4.39 EPS for the quarter, topping analysts’ consensus estimates of $3.08 by $1.31. The firm had revenue of $271.13 billion during the quarter, compared to analyst estimates of $73.90 million. Sezzle had a net margin of 25.29% and a return on equity of 101.18%.

Analysts Set New Price Targets

Several research analysts have weighed in on SEZL shares. B. Riley reissued a “buy” rating and issued a $377.00 price target (up from $372.00) on shares of Sezzle in a report on Wednesday. Northland Securities boosted their target price on shares of Sezzle from $300.00 to $360.00 and gave the stock an “outperform” rating in a report on Thursday, December 19th.

Insider Activity at Sezzle

In related news, CFO Karen Hartje sold 3,457 shares of the business’s stock in a transaction dated Thursday, January 16th. The shares were sold at an average price of $316.32, for a total value of $1,093,518.24. Following the transaction, the chief financial officer now directly owns 35,121 shares of the company’s stock, valued at approximately $11,109,474.72. The trade was a 8.96 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Kyle M. Brehm bought 110 shares of the firm’s stock in a transaction on Thursday, December 5th. The stock was purchased at an average cost of $360.00 per share, with a total value of $39,600.00. Following the completion of the transaction, the director now directly owns 3,718 shares of the company’s stock, valued at approximately $1,338,480. The trade was a 3.05 % increase in their ownership of the stock. The disclosure for this purchase can be found here. 57.65% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Sezzle

Institutional investors have recently made changes to their positions in the stock. Plato Investment Management Ltd purchased a new position in Sezzle in the 4th quarter worth approximately $30,000. Meeder Asset Management Inc. purchased a new position in Sezzle during the fourth quarter valued at $31,000. Covestor Ltd bought a new position in Sezzle during the 3rd quarter valued at approximately $38,000. Federated Hermes Inc. increased its stake in Sezzle by 3,575.0% during the 4th quarter. Federated Hermes Inc. now owns 147 shares of the company’s stock valued at $38,000 after purchasing an additional 143 shares in the last quarter. Finally, Modus Advisors LLC bought a new position in shares of Sezzle during the fourth quarter valued at $80,000. Hedge funds and other institutional investors own 2.02% of the company’s stock.

Sezzle Price Performance

The firm has a 50-day moving average of $264.16 and a 200 day moving average of $243.15. The company has a debt-to-equity ratio of 1.54, a current ratio of 2.40 and a quick ratio of 2.40. The company has a market capitalization of $1.60 billion, a PE ratio of 30.44 and a beta of 9.58.

Sezzle Company Profile

Sezzle Inc operates as a technology-enabled payments company primarily in the United States and Canada. The company provides payment solution in-store and at online retail stores; and through proprietary payments solution that connects consumers with merchants. It also offers Sezzle Platform that provides a payments solution for consumers that extends credit at the point-of-sale allowing consumers to purchase and receive the ordered merchandise at the time of sale while paying in installments over time; Pay-in-Four, which allows consumers to pay a fourth of the purchase price up front and then another fourth of the purchase price every two weeks thereafter over a total of six weeks; Pay-in-Full that allows consumers to pay for the full value of their order up-front through the Sezzle Platform without the extension of credit; and Pay-in-Two and other alternative installment options, which allow consumer to pay half of the value of their order up-front and the second half in two weeks.