Klarna Group (NYSE:KLAR) Hits New 52-Week Low After Analyst Downgrade

Shares of Klarna Group plc (NYSE:KLAR) reached a new 52-week low during trading on Thursday after Morgan Stanley lowered their price target on the stock from $39.00 to $23.00. Morgan Stanley currently has an equal weight rating on the stock. Klarna Group traded as low as $14.62 and last traded at $14.3640, with a volume of 4744028 shares changing hands. The stock had previously closed at $18.95.

Other research analysts also recently issued research reports about the stock. Wells Fargo & Company began coverage on shares of Klarna Group in a research report on Wednesday, October 22nd. They set an “overweight” rating and a $45.00 price target for the company. Citigroup cut their price objective on Klarna Group from $58.00 to $45.00 and set a “buy” rating for the company in a research note on Thursday, November 20th. UBS Group decreased their target price on Klarna Group from $48.00 to $46.00 and set a “buy” rating on the stock in a research report on Thursday, November 20th. Wolfe Research lowered their price target on Klarna Group from $50.00 to $45.00 and set an “outperform” rating on the stock in a research note on Wednesday, November 19th. Finally, Weiss Ratings reissued a “sell (e+)” rating on shares of Klarna Group in a research note on Monday, December 29th. Eleven investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $45.53.

Klarna Group News Summary

Here are the key news stories impacting Klarna Group this week:

• Positive Sentiment: Klarna delivered its first $1 billion quarter (revenue up ~38%), GMV topped guidance and banking customers more than doubled, showing accelerating U.S. adoption and deeper monetization of its payments-to-bank strategy. Klarna Accelerates U.S. Growth and Delivers $1bn Revenue Driven by Rapid Banking Service Adoption
• Neutral Sentiment: The company issued Q1 revenue guidance of $900M–$980M (consensus ~ $972M), which leaves room for upside at the top end but the midpoint is roughly in line to slightly below Street estimates — a mixed datapoint for near-term expectations. Klarna (KLAR) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
• Negative Sentiment: EPS missed materially (reported -$0.18 vs. -$0.03 expected) and the company swung to a quarterly loss amid higher credit costs — headlines focused on the profit miss and the stock fell sharply. Stock Market Today, Feb. 19: Klarna Group Shares Plunge After Q4 Results Miss Forecasts
• Negative Sentiment: Multiple law firms have filed or circulated notices about securities-class-action claims tied to Klarna’s September 2025 IPO; the surge of litigation notices and a looming lead‑plaintiff deadline raise legal overhang and potential costs/uncertainty for shareholders. INVESTOR ALERT: Pomerantz Law Firm Reminds Investors with Losses on their Investment in Klarna Group PLC of Class Action Lawsuit and Upcoming Deadlines – KLAR
• Negative Sentiment: Analysts reacted: Morgan Stanley cut its price target significantly (from $39 to $23) and moved to an equal‑weight stance, reflecting increased near-term risk and contributing to downward pressure on the stock. Benzinga

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. Walmart Inc. purchased a new stake in shares of Klarna Group during the third quarter worth $87,960,000. WCM Investment Management LLC purchased a new position in Klarna Group in the third quarter valued at $16,040,000. Robeco Institutional Asset Management B.V. acquired a new position in Klarna Group during the 3rd quarter worth $2,199,000. Dragoneer Investment Group LLC purchased a new stake in Klarna Group during the 3rd quarter worth about $303,595,000. Finally, Sumitomo Mitsui Trust Group Inc. acquired a new stake in Klarna Group in the 3rd quarter valued at about $19,406,000.

Klarna Group Trading Down 26.8%

The company has a market cap of $9.96 billion and a price-to-earnings ratio of -21.35. The company’s 50 day moving average price is $26.40.

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.