In a recent transaction, Sezzle Inc.’s (ASX:SEZL) Senior Vice President of Finance and Controller, Justin Krause, sold company stock valued at over $173,000. The sale occurred on August 12, 2024, and involved a total of 1,461 shares of common stock. The shares were sold at prices ranging from $118.00 to $119.23, with a weighted average price of $118.4347.
The transaction was reported in a filing with the Securities and Exchange Commission (SEC). According to the details provided, the sales were executed in multiple transactions. Krause also acquired the same number of shares through the exercise of stock options at a price of $59.04 per share, totaling approximately $86,257. Following these transactions, Krause's direct ownership in Sezzle Inc. stands at 16,533 shares of common stock.
Sezzle Inc., headquartered in Minneapolis, Minnesota, operates in the business services sector and is known for its payment platform that enables users to make online purchases and pay for them over time.
Investors often monitor insider transactions as they can provide insights into the executive's view of the company's stock value and financial health. In this case, the significant sale by a high-ranking finance executive might draw particular attention from the market and shareholders alike.
The stock options exercised by Krause were part of a compensation package and were set to expire on September 26, 2029. It should be noted that the common stock of Sezzle Inc. underwent a reverse split on May 11, 2023, at a ratio of 1-for-38, which affected the number of shares underlying the stock options beneficially owned by Krause prior to this Form 4 filing.
For additional information regarding the specific transactions, including the number of shares sold at each price point, Krause has agreed to provide full details upon request. The transactions are part of the regular disclosure of stock trades by company insiders, providing transparency to investors and the market.
In other recent news, Sezzle Inc. has been making significant strides. The company recently announced changes to its board, with the resignation of Michael Cutter and Paul Alan Lahiff, and the appointment of Stephen F. East and Kyle M. Brehm. Both new appointees meet NASDAQ’s independence and financial expertise requirements and have entered into the company’s standard form of directors’ indemnification agreement.
Sezzle has also been recognized for its robust growth and profitability. Notably, the company achieved net income profitability for the full year of 2023 and maintained this profitability into Q1 of 2024. This financial performance has been largely driven by its 0% APR point-of-sale financing, which has bolstered incremental sales.
B. Riley initiated coverage on Sezzle with a Buy rating, citing the company's strong growth trajectory within the rapidly expanding buy-now-pay-later sector. The firm also set a price target of $113.00, based on a 16 times multiple on its 2025 earnings per share estimate. B. Riley anticipates Sezzle to continue its expansion by adding more retail partners and growing its consumer subscription services.
In addition to these developments, Sezzle has authorized an additional $15 million stock repurchase program, following the completion of its previous $5 million stock buyback plan. This decision reflects the company's confidence in its ongoing momentum and commitment to maximizing shareholder value. The repurchases will be conducted on the open market, in accordance with SEC Rule 10b-18 and federal securities laws.
These are some of the recent developments surrounding Sezzle, providing investors with a snapshot of the company's current state and future prospects.
InvestingPro Insights
In light of the recent insider transactions at Sezzle Inc. (ASX:SEZL), investors are keenly observing the company's performance indicators. According to real-time data from InvestingPro, Sezzle Inc. boasts a robust market capitalization of $662.79 million, reflecting significant investor confidence. The company's Price/Earnings (P/E) ratio stands at a competitive 16.27, suggesting that its stock might be reasonably valued relative to its earnings. Moreover, Sezzle's impressive revenue growth over the last twelve months, clocking in at 39.33%, indicates a strong expansion of its business operations.
InvestingPro Tips highlight several key aspects that could further inform investor decisions. Notably, Sezzle is expected to see an increase in net income this year, which could be a positive sign for future profitability. Additionally, the company has been trading near its 52-week high, indicating a strong market performance. These insights, coupled with the fact that Sezzle's liquid assets exceed its short-term obligations, provide a picture of a company with a solid financial footing.
For investors seeking a deeper dive into Sezzle's performance and prospects, there are more InvestingPro Tips available. Currently, there are an additional 11 tips listed on InvestingPro, which can be accessed to gain a comprehensive understanding of the company's trajectory and market position.
These metrics and insights from InvestingPro are particularly relevant in the context of insider transactions, as they help to paint a broader picture of the company's financial health and future potential. With Sezzle's next earnings date on the horizon, November 7, 2024, stakeholders will be watching closely to see how these factors play out in the company's financial results.
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