Sezzle Inc. (NASDAQ:SEZL) experienced a notable increase in short interest during December 2023. As of December 15, the total short interest reached 5,343,794 shares, marking a significant rise of 26.8% compared to the previous total of 4,214,456 shares recorded on November 30. With an average trading volume of 1,153,192 shares, this translates to a days-to-cover ratio of approximately 4.6 days. Currently, about 31.0% of Sezzle’s shares are short sold, indicating heightened interest from investors betting against the company’s stock.
Analysts Share Mixed Ratings on Sezzle
Sezzle has attracted attention from various research analysts, with differing evaluations regarding its future performance. On September 11, 2023, TD Cowen initiated coverage on Sezzle, assigning a “hold” rating and setting a price target of $82.00. Weiss Ratings reaffirmed a “hold (C+)” rating on December 4, while UBS Group established a target price of $110.00 in a research report released on November 6.
As of now, the consensus rating from analysts is a “hold,” with an average price target of $126.25, according to MarketBeat.com. Two analysts have given the stock a “buy” rating, while three have opted for a “hold” rating.
Recent Financial Performance and Insider Activity
Sezzle reported its quarterly earnings on November 19, 2023, revealing earnings per share of $0.21 and revenues totaling $40.84 million for the quarter. The company boasts a return on equity of 90.06% and a net margin of 27.66%. Looking ahead, sell-side analysts project that Sezzle will achieve earnings per share of $9.77 for the current fiscal year.
In related news, Director Kyle M. Brehm purchased 1,217 shares of Sezzle stock on November 12 at an average price of $57.50 per share, totaling $69,977.50. Following this acquisition, Brehm’s holdings increased to 24,129 shares, valued at approximately $1,387,417.50. Conversely, CFO Karen Hartje sold 5,484 shares on October 6 at an average price of $85.00, amounting to $466,140.00. After this transaction, she retains 116,053 shares, valued at around $9,864,505.
Insider ownership reflects a substantial 49.49% of the company’s stock, highlighting a significant level of commitment from its executives.
Institutional Investors Adjust Positions
Recent activity among institutional investors has also influenced Sezzle’s stock. CWM LLC increased its position by 8.1% during the second quarter, acquiring an additional 80 shares for a total of 1,070 shares valued at $192,000. Similarly, Ameritas Investment Partners Inc. raised its stake by 8.8%, adding 122 shares to reach a total of 1,508 shares valued at $270,000.
Other notable transactions include BNP Paribas Asset Management Holding S.A. and Spire Wealth Management, both of which established new stakes in Sezzle valued at $29,000 and $32,000, respectively. Overall, institutional investors and hedge funds collectively own 2.02% of Sezzle’s stock.
Sezzle Inc. is a financial technology company based in Minneapolis, Minnesota, specializing in buy now, pay later (BNPL) services. This innovative platform allows consumers to split purchases into interest-free installment payments, thereby enhancing the shopping experience for both consumers and e-commerce merchants. The company was founded in 2016 and completed its initial public offering on the NASDAQ under the ticker SEZL, positioning itself as a consumer-friendly alternative to traditional credit products.
