Wall Street Zen Downgrades Klarna Group (NYSE:KLAR) to Sell

Klarna Group (NYSE:KLAR) was downgraded by research analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a report issued on Saturday.

Other equities analysts have also issued research reports about the stock. Deutsche Bank Aktiengesellschaft increased their target price on shares of Klarna Group from $18.00 to $27.00 and gave the company a “buy” rating in a report on Thursday, July 2nd. Morgan Stanley lowered their price target on shares of Klarna Group from $21.00 to $17.00 and set an “equal weight” rating for the company in a research note on Wednesday, August 19th. Weiss Ratings restated a “sell (e+)” rating on shares of Klarna Group in a research report on Thursday, August 13th. Wolfe Research cut Klarna Group from an “outperform” rating to a “peer perform” rating in a research note on Tuesday, August 25th. Finally, Keefe, Bruyette & Woods lowered their target price on Klarna Group from $26.00 to $21.00 and set an “outperform” rating for the company in a research note on Friday, August 21st. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, Klarna Group has an average rating of “Hold” and a consensus target price of $30.39.

Klarna Group Price Performance

Shares of KLAR opened at $14.27 on Friday. Klarna Group has a 1 year low of $12.06 and a 1 year high of $57.20. The stock has a 50 day simple moving average of $18.43 and a two-hundred day simple moving average of $16.30. The firm has a market cap of $5.39 billion and a P/E ratio of -38.57.

Klarna Group (NYSE:KLAR) last posted its quarterly earnings results on Friday, August 14th. The company reported $0.01 EPS for the quarter, topping the consensus estimate of ($0.06) by $0.07. The firm had revenue of $1.04 billion for the quarter, compared to the consensus estimate of $992.56 million. Klarna Group had a negative net margin of 3.54% and a negative return on equity of 5.39%. The firm’s revenue for the quarter was up 26.6% compared to the same quarter last year. On average, equities analysts anticipate that Klarna Group will post -0.01 earnings per share for the current year.

Insider Activity at Klarna Group

In other news, CEO Sebastian Siemiatkowski purchased 692,506 shares of the stock in a transaction that occurred on Wednesday, August 26th. The stock was bought at an average cost of $14.37 per share, for a total transaction of $9,951,311.22. Following the acquisition, the chief executive officer directly owned 25,344,322 shares of the company’s stock, valued at $364,197,907.14. This represents a 2.81% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link.

Hedge Funds Weigh In On Klarna Group

A number of hedge funds have recently modified their holdings of the company. Caitong International Asset Management Co. Ltd boosted its holdings in shares of Klarna Group by 19.6% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 4,053 shares of the company’s stock worth $117,000 after purchasing an additional 665 shares during the period. Global Retirement Partners LLC increased its holdings in Klarna Group by 800.0% during the 4th quarter. Global Retirement Partners LLC now owns 900 shares of the company’s stock valued at $26,000 after purchasing an additional 800 shares during the period. US Bancorp DE purchased a new position in Klarna Group during the 3rd quarter valued at about $30,000. SBI Securities Co. Ltd. raised its position in Klarna Group by 42.1% during the 4th quarter. SBI Securities Co. Ltd. now owns 2,891 shares of the company’s stock valued at $84,000 after purchasing an additional 856 shares during the last quarter. Finally, CWM LLC raised its position in Klarna Group by 172.9% during the 4th quarter. CWM LLC now owns 1,498 shares of the company’s stock valued at $43,000 after purchasing an additional 949 shares during the last quarter.

Key Klarna Group News

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

• Positive Sentiment: CEO makes substantial insider purchase: Chief Executive Sebastian Siemiatkowski bought 692,506 KLAR shares at an average price of $14.37, investing approximately $9.95 million. The purchase increased his ownership by 2.81% to 25.34 million shares and may support investor confidence by signaling management’s belief that the stock is undervalued. Klarna CEO Sebastian Siemiatkowski Acquires 692,506 Shares for $10 Million
• Positive Sentiment: Affirm earnings lift BNPL peers: Affirm’s stronger-than-expected fourth-quarter results improved sentiment toward the broader BNPL industry. Investors appear to be interpreting the results as evidence of resilient consumer demand and potentially favorable operating trends for Klarna. Klarna stock climbs as Affirm’s Q4 beat lifts buy-now-pay-later peers
• Positive Sentiment: Reduced competitive threat from a reported PayPal deal: The BNPL relief trade broadened after reports that Stripe and Advent International abandoned a potential acquisition of PayPal valued at more than $50 billion. The development may ease concerns about a major fintech combination intensifying competition in payments and BNPL. Buy Now Pay Later Relief Trade Broadens
• Neutral Sentiment: Apple leasing strategy draws attention: Coverage of Apple and Klarna’s new leasing strategy could affect perceptions of Klarna’s partnership and product expansion, but the available report provides insufficient detail to determine the financial impact. Apple and new Klarna leasing strategy
• Negative Sentiment: Wolfe Research downgrades the stock: The firm lowered Klarna to “Peer Perform,” potentially limiting upside expectations and reinforcing caution after the stock’s sharp decline from its 12-month high. Klarna Rating Lowered to Peer Perform
• Negative Sentiment: Investor investigation announced: Pomerantz LLP is investigating potential claims on behalf of Klarna investors. Although no findings or allegations were detailed, the announcement adds legal and reputational uncertainty to KLAR. Pomerantz Investor Alert

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.