Sezzle (NASDAQ:SEZL) Shares Gap Down on Analyst Downgrade

Sezzle Inc. (NASDAQ:SEZL) shares gapped down prior to trading on Friday after Keefe, Bruyette & Woods lowered their price target on the stock from $190.00 to $155.00. The stock had previously closed at $178.53, but opened at $132.36. Keefe, Bruyette & Woods currently has a market perform rating on the stock. Sezzle shares last traded at $121.05, with a volume of 823,530 shares changing hands.

Other equities research analysts have also issued reports about the stock. B. Riley Financial reissued a “buy” rating and set a $141.00 target price (up from $117.00) on shares of Sezzle in a research note on Tuesday, June 2nd. TD Cowen lifted their price target on Sezzle from $108.00 to $165.00 and gave the company a “hold” rating in a research note on Tuesday, July 7th. Freedom Capital raised Sezzle to a “hold” rating in a report on Wednesday, June 24th. Zacks Research upgraded Sezzle from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, May 27th. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of Sezzle in a report on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and five have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Sezzle has an average rating of “Moderate Buy” and a consensus price target of $146.50.

Insider Activity at Sezzle

In other news, Director Paul Paradis sold 26,400 shares of Sezzle stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $161.35, for a total value of $4,259,640.00. Following the sale, the director owned 416,195 shares in the company, valued at $67,153,063.25. This trade represents a 5.96% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Justin Krause sold 3,178 shares of the business’s stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $117.72, for a total transaction of $374,114.16. Following the sale, the senior vice president directly owned 72,457 shares of the company’s stock, valued at $8,529,638.04. This represents a 4.20% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 86,928 shares of company stock worth $13,510,889 in the last ninety days. 49.49% of the stock is owned by company insiders.

Key Headlines Impacting Sezzle

Here are the key news stories impacting Sezzle this week:

• Positive Sentiment: Q2 earnings and revenue exceeded expectations. Sezzle reported adjusted earnings of $1.13 per share, above the $1.03 consensus estimate, while revenue reached $149.68 million versus expectations of $135.09 million. Earnings also increased from $0.69 per share a year earlier. Sezzle Reports Second Quarter 2026 Results
• Positive Sentiment: Management raised its full-year 2026 outlook. Sezzle now expects EPS of $5.25, ahead of the approximately $5.11 analyst consensus, and revenue of about $607.9 million, above the $596 million consensus. The improved outlook supports the company’s growth narrative. Sezzle stock slumps after Q2 earnings beat; guidance raised
• Positive Sentiment: Needham raised its price target and maintained a bullish view. Needham & Company increased its target from $166 to $172 and assigned a “Buy” rating, implying substantial potential upside from the reference price. Benzinga analyst action
• Neutral Sentiment: Analyst opinion is becoming more divided. Keefe, Bruyette & Woods cut its price target from $190 to $155 and changed its view to “Market Perform,” although its revised target still implies upside. Benzinga analyst action
• Negative Sentiment: The strong results did not meet the market’s very high expectations. Coverage highlighted that Sezzle had rallied roughly 106% over three months before earnings, leaving the stock vulnerable to profit-taking and concerns about valuation and margin sustainability. The post-earnings selloff suggests investors may be demanding more than an earnings beat and modest guidance increase. Sezzle delivers strong Q2 numbers but stock drops

Hedge Funds Weigh In On Sezzle

A number of hedge funds have recently made changes to their positions in the company. Versant Capital Management Inc lifted its position in shares of Sezzle by 245.9% in the second quarter. Versant Capital Management Inc now owns 256 shares of the company’s stock valued at $44,000 after acquiring an additional 182 shares in the last quarter. Vestcor Inc purchased a new stake in shares of Sezzle during the third quarter worth approximately $29,000. Covestor Ltd increased its position in shares of Sezzle by 109.4% during the fourth quarter. Covestor Ltd now owns 490 shares of the company’s stock worth $31,000 after purchasing an additional 256 shares in the last quarter. Empowered Funds LLC acquired a new position in Sezzle in the 4th quarter valued at $33,000. Finally, Sunbelt Securities Inc. purchased a new position in Sezzle in the 3rd quarter valued at $52,000. Institutional investors and hedge funds own 2.02% of the company’s stock.

Sezzle Stock Down 33.2%

The company has a current ratio of 3.65, a quick ratio of 3.65 and a debt-to-equity ratio of 0.73. The business has a fifty day simple moving average of $157.17 and a two-hundred day simple moving average of $104.21. The company has a market cap of $4.01 billion, a PE ratio of 28.51 and a beta of 6.76.

Sezzle (NASDAQ:SEZL) last released its earnings results on Thursday, August 6th. The company reported $1.13 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.03 by $0.10. The business had revenue of $149.68 million during the quarter, compared to analyst estimates of $135.09 million. Sezzle had a net margin of 30.83% and a return on equity of 87.46%. Sezzle has set its FY 2026 guidance at 5.250-5.250 EPS. As a group, equities research analysts predict that Sezzle Inc. will post 5.1 earnings per share for the current year.

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.