I wouldn't worry about it chili,the amounts being sold are minor compared to their holdings and in any case they help a bit with liquidity. The share price has held up real well in the 70s/80s and I would argue that this price range is now a base before the next results are reported. Also see what the price is after 28 June, the Russell Index rebalancing event. Then another quarter-end is over too...,
Company provided a guidance for the year of $30m net income, yet actually already made 27% of that ($8m) in the first quarter of the year - which in the past has been the seasonally weakest quarter for Sezzle. I'd say with each quarter reported if they can keep financial metrics in line with Q1, guidance will be increased again. Play around with some comparable PE ratios on the forward guidance and you can get some good potential valuations for Sezzle. Add growth into the mix and maybe an even higher PE ratio can be justified, e.g. 30 x forward earnings etc.
p.s. i'm betting the active consumer numbers will show a YOY increase in their next preso. 2Q23 numbers were 2,637,000, 1Q24 numbers were 2,594,000. It won't take much for the scorecard to turn entirely green in the next preso when comparing 2Q24 to 2Q23 and maybe some of the recent partnerships (such as Vallarta Supermarkets) will help this measure over the line.
SZL Price at posting:
$24.35 Sentiment: Buy Disclosure: Held
