Sezzle (NASDAQ:SEZL) Trading 12.6% Higher on Earnings Beat

Shares of Sezzle Inc. (NASDAQ:SEZL) shot up 12.6% during mid-day trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $342.61 and last traded at $328.16. 126,117 shares traded hands during mid-day trading, a decline of 13% from the average session 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. Sezzle had a net margin of 25.29% and a return on equity of 101.18%. The company had revenue of $271.13 billion for the quarter, compared to the consensus estimate of $73.90 million.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on the company. Northland Securities increased their price objective on Sezzle from $300.00 to $360.00 and gave the stock an “outperform” rating in a research report 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 note on Wednesday.

Insider Activity

In related news, CFO Karen Hartje sold 3,457 shares of the firm’s stock in a transaction dated Thursday, January 16th. The stock was sold at an average price of $316.32, for a total transaction of $1,093,518.24. Following the completion of the transaction, the chief financial officer now directly owns 35,121 shares in the company, valued at $11,109,474.72. This trade represents a 8.96 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Kyle M. Brehm purchased 110 shares of the business’s 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 completion of the purchase, the director now directly owns 3,718 shares of the company’s stock, valued at approximately $1,338,480. This trade represents a 3.05 % increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders own 57.65% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Creative Planning acquired a new stake in Sezzle during the 3rd quarter worth approximately $383,000. Principal Financial Group Inc. acquired a new stake in shares of Sezzle in the third quarter valued at $548,000. Covestor Ltd purchased a new position in Sezzle in the third quarter valued at $38,000. Navellier & Associates Inc. purchased a new position in Sezzle in the third quarter valued at $1,217,000. Finally, Charles Schwab Investment Management Inc. grew its stake in Sezzle by 191.7% during the 3rd quarter. Charles Schwab Investment Management Inc. now owns 20,363 shares of the company’s stock worth $3,474,000 after purchasing an additional 13,383 shares in the last quarter. Institutional investors and hedge funds own 2.02% of the company’s stock.

Sezzle Trading Up 12.6 %

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

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.