Klarna Group (NYSE:KLAR) Stock Price Up 8.1% on Strong Earnings

Klarna Group plc (NYSE:KLAR)’s share price shot up 8.1% on Wednesday following a stronger than expected earnings report. The stock traded as high as $16.39 and last traded at $16.3520. 2,488,448 shares traded hands during mid-day trading, a decline of 58% from the average session volume of 5,966,838 shares. The stock had previously closed at $15.13.

The company reported ($0.01) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.13) by $0.12. Klarna Group had a negative return on equity of 7.62% and a negative net margin of 5.21%.The business’s quarterly revenue was up 42.7% on a year-over-year basis.

Analyst Ratings Changes

Several equities research analysts recently weighed in on the company. TD Cowen started coverage on Klarna Group in a report on Monday, May 11th. They set a “hold” rating and a $16.00 price objective on the stock. Morgan Stanley upped their target price on Klarna Group from $16.00 to $18.00 and gave the company an “equal weight” rating in a report on Monday. Keefe, Bruyette & Woods upped their target price on Klarna Group from $22.00 to $26.00 and gave the company an “outperform” rating in a report on Friday, May 15th. Wall Street Zen raised Klarna Group from a “sell” rating to a “hold” rating in a report on Saturday, May 9th. Finally, UBS Group reduced their target price on Klarna Group from $46.00 to $20.00 and set a “buy” rating for the company in a report on Friday, February 20th. Eleven investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $33.24.

Hedge Funds Weigh In On Klarna Group

Hedge funds and other institutional investors have recently modified their holdings of the company. SC US Ttgp LTD. purchased a new position in shares of Klarna Group in the 3rd quarter worth about $2,016,821,000. Commonwealth Bank of Australia purchased a new position in shares of Klarna Group in the 4th quarter worth about $503,243,000. Wellington Management Group LLP purchased a new position in shares of Klarna Group in the 3rd quarter worth about $348,834,000. Scge Management L.P. purchased a new position in shares of Klarna Group in the 3rd quarter worth about $193,018,000. Finally, HarbourVest Partners LLC purchased a new position in shares of Klarna Group in the third quarter worth about $184,105,000.

Klarna Group Stock Up 8.2%

The stock has a market cap of $6.18 billion and a PE ratio of -31.50. The company has a fifty day moving average price of $14.08 and a 200 day moving average price of $22.52.

Klarna Group Company Profile

Klarna Group is a global payments provider specializing in “buy now, pay later” (BNPL) solutions for online and in-store shoppers. The company partners with merchants to offer flexible payment options, including interest-free installments and deferred payments, aiming to enhance conversion rates and customer loyalty. Klarna’s platform integrates risk assessment, fraud prevention, and a one-click checkout experience to streamline transactions for both retailers and consumers.

Through its digital wallet and mobile app, Klarna enables users to manage purchases, track spending and access exclusive shopping offers from partner merchants.