In a recent transaction, Paul Martin Purcell, a former director of Sezzle Inc. (NYSE:SEZL), sold 10,000 shares of company stock, totaling approximately $1.34 million. The transaction took place on September 11, with the shares being sold at a price of $134.325 each.
This sale has adjusted Purcell's holdings in Sezzle Inc. to 132,080 shares, which are owned indirectly through Continental Investment Partners, LLC. The details of the transaction were made public through a Form 4 filing with the Securities and Exchange Commission.
Sezzle Inc. is known for its business services within the industry, operating under the standard industrial classification of services-business services, not elsewhere classified. The company is incorporated in Delaware and has its business address in Minneapolis, Minnesota.
Investors often monitor the buying and selling activities of company insiders as these transactions can provide insights into the executives' perspectives on the company's current valuation and future prospects. The sale by Purcell represents a notable change in his investment position in Sezzle Inc.
As of now, Sezzle Inc. continues its operations, providing services as outlined in its business classification, and remains a company of interest to those following the business services sector.
In other recent news, Sezzle Inc. has undergone significant board changes with the resignation of Michael Cutter and Paul Alan Lahiff and the appointment of Stephen F. East and Kyle M. Brehm. Analyst firm B. Riley has initiated coverage on Sezzle with a Buy rating, citing the company's transition into profitability and its potential for growth in the rapidly expanding buy-now-pay-later sector. The company achieved net income profitability for the full year of 2023, continuing into the first quarter of 2024, thanks to robust incremental sales from its 0% APR point-of-sale financing.
B. Riley set a price target of $113.00 for Sezzle, based on a 16 times multiple on its 2025 earnings per share estimate. The firm sees potential for Sezzle to expand its consumer subscription services and add more retail partners. In another development, Sezzle's board has authorized an additional $15 million stock repurchase program, following the completion of its previous $5 million buyback plan.
These are some of the recent developments surrounding Sezzle, providing investors with insights into the company's governance changes, financial performance, and growth strategies.
InvestingPro Insights
Sezzle Inc. (NYSE:SEZL) appears to be on a strong financial trajectory according to recent data. The company's net income is expected to grow this year, which could be a significant factor for investors considering the recent insider sale by Paul Martin Purcell. This expectation of growth aligns with Sezzle's solid performance over the past months, as evidenced by a robust 39.33% revenue growth in the last twelve months as of Q2 2024.
While Purcell's sale might raise questions about his outlook on the company's valuation, Sezzle's stock is known for its high price volatility, which is an InvestingPro Tip that could explain such transactions. Moreover, the company's stock has demonstrated a strong return over the last year, with an impressive 72.71% price total return, and it's currently trading near its 52-week high, at 98.28% of this level.
Investors may also find the company's valuation metrics of interest. Sezzle's Price / Book ratio stands at a high 16.28 as of the last twelve months, indicating that the stock is trading at a premium compared to its book value. This could reflect the market's optimism regarding the company's growth prospects or its intangible assets.
For those seeking more in-depth analysis, there are additional InvestingPro Tips available on Sezzle Inc. at InvestingPro, which could provide further insights into the company's performance and future outlook.
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