Sezzle (NASDAQ:SEZL) Stock Price Up 12.6% on Earnings Beat

Sezzle Inc. (NASDAQ:SEZL) shares rose 12.6% during trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $342.61 and last traded at $328.16. Approximately 126,117 shares changed hands during mid-day 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 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.08 by $1.31. Sezzle had a net margin of 25.29% and a return on equity of 101.18%. The firm had revenue of $271.13 billion during the quarter, compared to analysts’ expectations of $73.90 million.

Analysts Set New Price Targets

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

Insiders Place Their Bets

In related news, CFO Karen Hartje sold 3,457 shares of the company’s stock in a transaction dated Thursday, January 16th. The stock was sold at an average price of $316.32, for a total value of $1,093,518.24. Following the completion of the transaction, the chief financial officer now owns 35,121 shares of the company’s stock, valued at approximately $11,109,474.72. This represents a 8.96 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Kyle M. Brehm purchased 110 shares of the stock in a transaction on Thursday, December 5th. The shares were acquired at an average price of $360.00 per share, for a total transaction of $39,600.00. Following the transaction, the director now directly owns 3,718 shares of the company’s stock, valued at $1,338,480. This represents a 3.05 % increase in their position. The disclosure for this purchase can be found here. Insiders own 57.65% of the company’s stock.

Institutional Investors Weigh In On Sezzle

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new position in Sezzle during the fourth quarter valued at $691,000. Voloridge Investment Management LLC purchased a new stake in shares of Sezzle during the fourth quarter worth $2,762,000. Washington Harbour Partners LP acquired a new stake in Sezzle in the 4th quarter valued at about $396,000. Two Sigma Investments LP purchased a new stake in shares of Sezzle in the fourth quarter valued at approximately $436,000. Finally, Nomura Holdings Inc. acquired a new stake in shares of Sezzle in the fourth quarter valued at approximately $435,000. Hedge funds and other institutional investors own 2.02% of the company’s stock.

Sezzle Stock Performance

The stock has a 50-day moving average of $262.03 and a 200 day moving average of $242.40. The stock has a market cap of $1.84 billion, a PE ratio of 34.78 and a beta of 9.58. The company has a quick ratio of 2.40, a current ratio of 2.40 and a debt-to-equity ratio of 1.54.

About Sezzle

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.