MINNEAPOLIS—Paul Purcell, a former director at Sezzle Inc. (NASDAQ:SEZL), recently sold 1,280 shares of the company's common stock. The transaction took place on November 15, with shares sold at an average price of $376.26, amounting to a total value of $481,614.
Following this sale, Purcell holds 81,496 shares in Sezzle through Continental Investment Partners, LLC. This transaction was reported in a Form 4 filing with the Securities and Exchange Commission.
Sezzle, headquartered in Minneapolis, operates in the business services sector, offering financial services that enable consumers to pay for purchases in installments.
In other recent news, Sezzle Inc. has made significant amendments to its credit and guaranty agreements, according to a recent SEC filing. These changes include adjustments to financial covenants related to tangible net worth and restricted payments, and conditions under which Sezzle can distribute dividends to its shareholders or repurchase its common stock. In addition, Sezzle has updated its agreements with WebBank and credit arrangements, enhancing its role in issuing its subscription products, Sezzle Anywhere and Sezzle Premium.
Moreover, Sezzle and its lenders have revised the terms of their Revolving Credit and Security Agreement to accommodate the purchase of loans from WebBank. These recent developments reflect Sezzle's strategic adjustments within the competitive payment solutions sector. The company has also seen significant board changes with the departure of Michael Cutter and Paul Alan Lahiff and the appointment of Stephen F. East and Kyle M. Brehm.
Sezzle has maintained profitability since 2023, driven by its 0% APR point-of-sale financing, a fact underscored by B. Riley, which initiated coverage on Sezzle with a Buy rating. B. Riley highlights Sezzle's potential for high growth at a low marginal cost leading to significant margin expansion. These developments provide investors with the latest insights into the company's financial management policies and growth trajectory.
InvestingPro Insights
While Paul Purcell's recent sale of Sezzle Inc. (NASDAQ:SEZL) shares has caught attention, it's crucial to consider the broader financial picture of the company. According to InvestingPro data, Sezzle's market capitalization stands at $2.16 billion, reflecting its significant presence in the financial technology sector.
The company's growth trajectory is noteworthy, with revenue growth at 49.13% over the last twelve months as of Q3 2024. This robust growth is complemented by a strong quarterly revenue increase of 71.28% in Q3 2024, indicating accelerating momentum in Sezzle's business model.
InvestingPro Tips highlight that Sezzle's net income is expected to grow this year, and analysts predict the company will be profitable. This positive outlook is supported by the fact that two analysts have revised their earnings upwards for the upcoming period, suggesting confidence in Sezzle's financial performance.
However, investors should note that Sezzle is trading at a high earnings multiple, with a P/E ratio of 45.39. This valuation metric, combined with the InvestingPro Tip that the stock generally trades with high price volatility, suggests that potential investors should carefully consider their risk tolerance.
For those interested in a deeper analysis, InvestingPro offers 13 additional tips that could provide valuable insights into Sezzle's financial health and market position.
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