Klarna Group (NYSE:KLAR) Shares Up 8.1% After Better-Than-Expected Earnings

Shares of Klarna Group plc (NYSE:KLAR) traded up 8.1% during trading on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $16.39 and last traded at $16.3520. 2,488,448 shares traded hands during 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 (EPS) for the quarter, beating the consensus estimate 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%.Klarna Group’s quarterly revenue was up 42.7% compared to the same quarter last year.

Analyst Ratings Changes

KLAR has been the subject of a number of research reports. Wall Street Zen upgraded shares of Klarna Group from a “sell” rating to a “hold” rating in a research note on Saturday, May 9th. JPMorgan Chase & Co. decreased their target price on shares of Klarna Group from $40.00 to $20.00 and set an “overweight” rating for the company in a research note on Friday, February 20th. UBS Group decreased their target price on shares of Klarna Group from $46.00 to $20.00 and set a “buy” rating for the company in a research note on Friday, February 20th. Morgan Stanley boosted their target price on shares of Klarna Group from $16.00 to $18.00 and gave the company an “equal weight” rating in a research note on Monday. Finally, Keefe, Bruyette & Woods boosted their target price on shares of Klarna Group from $22.00 to $26.00 and gave the company an “outperform” rating in a research note on Friday, May 15th. Eleven research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Klarna Group currently has an average rating of “Moderate Buy” and an average target price of $33.24.

Hedge Funds Weigh In On Klarna Group

Hedge funds have recently added to or reduced their stakes in the company. WCM Investment Management LLC purchased a new position in shares of Klarna Group during the third quarter worth approximately $16,040,000. ARK Investment Management LLC acquired a new stake in shares of Klarna Group during the third quarter worth $16,922,000. HarbourVest Partners LLC acquired a new stake in shares of Klarna Group during the third quarter worth $184,105,000. Technology Crossover Management X Ltd. acquired a new stake in shares of Klarna Group during the third quarter worth $140,910,000. Finally, Monashee Investment Management LLC acquired a new stake in shares of Klarna Group during the third quarter worth $3,665,000.

Klarna Group Stock Up 8.2%

The company’s 50 day moving average price is $14.08 and its 200 day moving average price is $22.52. The firm has a market capitalization of $6.18 billion and a price-to-earnings ratio of -31.50.

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.