Sezzle (NASDAQ:SEZL) Shares Gap Up – Should You Buy?

Shares of Sezzle Inc. (NASDAQ:SEZL) gapped up before the market opened on Tuesday . The stock had previously closed at $204.12, but opened at $213.68. Sezzle shares last traded at $215.31, with a volume of 23,362 shares trading hands.

Analyst Ratings Changes

A number of brokerages have issued reports on SEZL. Northland Securities lifted their price objective on Sezzle from $300.00 to $360.00 and gave the company an “outperform” rating in a research note on Thursday, December 19th. B. Riley reaffirmed a “buy” rating and issued a $377.00 price target (up previously from $372.00) on shares of Sezzle in a research report on Wednesday, February 26th.

Sezzle Stock Up 7.6 %

The company has a market cap of $1.34 billion, a P/E ratio of 25.25 and a beta of 9.09. The company’s 50-day moving average is $261.43 and its two-hundred day moving average is $251.56. The company has a debt-to-equity ratio of 1.54, a current ratio of 2.40 and a quick ratio of 2.40.

Sezzle (NASDAQ:SEZL) last announced its quarterly earnings results on Tuesday, February 25th. The company reported $4.39 EPS for the quarter, topping analysts’ consensus estimates 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 analyst estimates of $73.90 million. As a group, equities analysts predict that Sezzle Inc. will post 9.77 earnings per share for the current fiscal year.

Sezzle announced that its Board of Directors has authorized a share repurchase plan on Monday, March 10th that authorizes the company to buyback $50.00 million in shares. This buyback authorization authorizes the company to purchase up to 4.3% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s management believes its shares are undervalued.

Insider Activity

In other news, CFO Karen Hartje sold 3,457 shares of the company’s stock in a transaction dated Thursday, January 16th. The shares were sold at an average price of $316.32, for a total transaction of $1,093,518.24. Following the completion of the sale, the chief financial officer now owns 35,121 shares of the company’s stock, valued at $11,109,474.72. This represents a 8.96 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders own 57.65% of the company’s stock.

Institutional Investors Weigh In On Sezzle

A number of hedge funds have recently modified their holdings of SEZL. Plato Investment Management Ltd bought a new position in Sezzle in the 4th quarter worth $30,000. Meeder Asset Management Inc. bought a new position in shares of Sezzle in the fourth quarter worth about $31,000. Federated Hermes Inc. lifted its position in shares of 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 buying an additional 143 shares in the last quarter. Covestor Ltd bought a new position in shares of Sezzle during the 3rd quarter valued at approximately $38,000. Finally, Modus Advisors LLC bought a new stake in Sezzle during the 4th quarter worth approximately $80,000. Institutional investors own 2.02% of the company’s stock.

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.