Former director of Sezzle Inc. (NYSE:SEZL), Paul Martin Purcell, has sold a total of 16,141 shares of the company's common stock on July 9, 2024, for an average price of $95.4573 per share, amounting to a total value of $1,540,776. This transaction was disclosed in a regulatory filing with the Securities and Exchange Commission.
The sale of shares by Purcell represents a significant transaction by a former member of the company's board. Following the sale, Purcell's remaining stake in Sezzle Inc. consists of 362,416 shares of common stock, which are indirectly owned through Continental Investment Partners, LLC.
Sezzle Inc., headquartered in Minneapolis, Minnesota, operates in the business services sector, offering alternative payment solutions. The company's stock is listed on the New York Stock Exchange under the ticker symbol SEZL.
Investors often monitor insider transactions such as these for insights into the perspectives of company executives and directors regarding the firm's stock. While the reasons behind Purcell's sale have not been disclosed, such transactions are required to be reported to the SEC and made public to ensure transparency in the financial markets.
The filing did not indicate any immediate plans for further sales or purchases of Sezzle Inc. stock by Purcell. The company has not issued any statements regarding the transaction, and it remains to be seen how this sale will impact investor sentiment toward Sezzle Inc. in the future.
In other recent news, Sezzle Inc, a buy-now-pay-later service provider, has been highlighted for its robust growth and profitability. The company received a Buy rating from B. Riley, citing its transition into profitability and promising growth trajectory in the rapidly expanding BNPL sector. The firm also set a price target of $113.00 for Sezzle's stock.
Sezzle has been recognized for its ability to offer 0% APR point-of-sale financing, which benefits both retailers and customers. This has contributed to the company's robust incremental sales and high growth at a low marginal cost.
The company's financial performance has been strong, with Sezzle achieving net income profitability for the full year of 2023 and maintaining this profitability into the first quarter of 2024. B. Riley's price target is based on a 16 times multiple on the firm's 2025 earnings per share (EPS) estimate.
In terms of future plans, the firm anticipates Sezzle to continue its expansion by adding more retail partners and growing its consumer subscription services. The BNPL industry is expected to grow at a compound annual growth rate of 20% over the next decade, and B. Riley believes that Sezzle is well-positioned to capitalize on this growth.
InvestingPro Insights
Amidst the news of former director Paul Martin Purcell's notable sale of Sezzle Inc. shares, current and prospective investors may find additional context in recent performance metrics and expert analysis. According to InvestingPro, Sezzle Inc. is trading at a low Price-to-Earnings (P/E) ratio relative to near-term earnings growth, suggesting potential undervaluation. The company's net income is also expected to grow this year, which could be a signal for future profitability.
InvestingPro Data reveals a robust financial profile for Sezzle Inc., with a market capitalization of $539.76 million USD, and a significant year-over-year revenue growth of 29.45% as of Q1 2024. The company's strong revenue growth is further highlighted by a quarterly increase of 35.49% in Q1 2024. Moreover, Sezzle has demonstrated a compelling gross profit margin of 48.4% for the same period, indicating efficient operations and cost control.
Investors tracking the stock's performance will note the impressive 38.63% price total return over the last three months, as of the current year. Additionally, Sezzle Inc. has achieved a striking 477.56% price total return over the last six months, reflecting a large price uptick that could be of interest to momentum investors.
For those seeking further insights, there are additional InvestingPro Tips available, including analyses on the company's trading patterns, liquidity, and valuation multiples. Sezzle Inc. currently has 11 more InvestingPro Tips listed, which can be accessed for a deeper dive into the company's financial health and market position. To gain full access to these tips, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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