Sezzle Inc. (NASDAQ: SEZL) experienced a significant increase in short interest in December 2023, reflecting growing market activity surrounding the financial technology firm. As of December 15, 2023, short interest totaled **5,343,794 shares**, up **26.8%** from the previous total of **4,214,456 shares** reported on November 30. This surge indicates that approximately **31.0%** of the company’s total shares are currently sold short, with a days-to-cover ratio of **4.6 days**, based on an average trading volume of **1,153,192 shares**.
Analysts Weigh In on Sezzle’s Prospects
Sezzle has attracted attention from various financial analysts, who have provided insights into the company’s stock performance. Notably, **TD Cowen** initiated coverage of Sezzle on September 11, 2023, assigning a **hold** rating with a price target of **$82.00**. Similarly, **Weiss Ratings** reaffirmed a **hold (C+)** rating in its latest report. In contrast, **UBS Group** set a more optimistic target price of **$110.00** on November 6.
Overall, the consensus among analysts is cautious, with two analysts recommending a **buy** and three opting for a **hold** rating. Current estimates from **MarketBeat.com** indicate a consensus rating of **hold** and an average price target of **$126.25**.
Sezzle’s Financial Performance
Sezzle’s recent quarterly earnings report, released on November 19, 2023, revealed earnings of **$0.21** per share and revenue of **$40.84 million**. The company showcased impressive financial health, boasting a return on equity of **90.06%** and a net margin of **27.66%**. Analysts forecast that Sezzle will post earnings of **$9.77** per share for the current fiscal year, indicating potential growth.
In a sign of confidence in the company, **Kyle M. Brehm**, a director at Sezzle, purchased **1,217 shares** on November 12, 2023, at an average price of **$57.50** per share, totaling **$69,977.50**. This purchase increased his holdings to **24,129 shares**, valued at approximately **$1,387,417.50**. Conversely, **Karen Hartje**, the Chief Financial Officer, sold **5,484 shares** on October 6, 2023, at an average price of **$85.00**, amounting to **$466,140.00**. Following this sale, she retained **116,053 shares** valued at about **$9,864,505**.
Insider ownership currently stands at **49.49%** of the company’s stock, indicating a significant level of commitment from those within the organization.
Institutional Investors Adjust Their Holdings
Recent changes among institutional investors highlight a growing interest in Sezzle. **CWM LLC** increased its stake by **8.1%** during the second quarter, now owning **1,070 shares** valued at **$192,000** after acquiring an additional **80 shares**. **Ameritas Investment Partners Inc.** also raised its holdings by **8.8%**, now possessing **1,508 shares** valued at **$270,000**.
Noteworthy new entrants include **BNP PARIBAS ASSET MANAGEMENT Holding S.A.**, which purchased a stake valued at **$29,000**, and **Spire Wealth Management**, which acquired shares worth **$32,000** during the same period. Overall, institutional and hedge fund investors control approximately **2.02%** of Sezzle’s stock.
Founded in **2016** and headquartered in **Minneapolis, Minnesota**, Sezzle specializes in buy now, pay later (BNPL) services, enabling consumers to split their purchases into interest-free installments. By integrating with e-commerce merchants, Sezzle provides flexible payment options that can enhance conversion rates and average order values. The company aims to offer a seamless user experience with instant approval decisions and no hidden fees, distinguishing itself from traditional credit products.
As the market continues to evolve, Sezzle’s performance and strategic decisions will be closely monitored by investors and analysts alike.
