Klarna Group (NYSE:KLAR) Hits New 1-Year Low After Analyst Downgrade

Klarna Group plc (NYSE:KLAR) hit a new 52-week low on Thursday after JPMorgan Chase & Co. lowered their price target on the stock from $40.00 to $20.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Klarna Group traded as low as $14.62 and last traded at $14.3640, with a volume of 4744028 shares. The stock had previously closed at $18.95.

A number of other equities analysts also recently issued reports on the company. Citigroup lowered their price target on Klarna Group from $58.00 to $45.00 and set a “buy” rating for the company in a report on Thursday, November 20th. UBS Group lowered their target price on shares of Klarna Group from $46.00 to $20.00 and set a “buy” rating for the company in a report on Friday. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Klarna Group in a research report on Monday, December 29th. Morgan Stanley reduced their price target on shares of Klarna Group from $39.00 to $23.00 and set an “equal weight” rating for the company in a research report on Wednesday. Finally, Wells Fargo & Company dropped their price objective on Klarna Group from $45.00 to $32.00 and set an “overweight” rating on the stock in a report on Friday. Eleven equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $40.00.

Trending Headlines about Klarna Group

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

• Positive Sentiment: Klarna delivered its first $1 billion revenue quarter (Q4 revenue ~$1.08B) and reported strong GMV and U.S. growth — evidence the business is scaling its payments + banking strategy. Klarna Accelerates U.S. Growth and Delivers $1bn Revenue
• Positive Sentiment: Klarna more than doubled its banking customers (to ~15.8M) and is converting checkout activity into deposits and card usage — a structural growth signal for lifetime customer value and cross-sell. Klarna Converts Checkout Traffic Into $13 Billion in Deposits
• Neutral Sentiment: Klarna filed its 2025 earnings presentation with U.S. regulators (slides/transcript available) — useful for digging into guidance, credit metrics and segment detail but no surprise in itself. Klarna Group Files 2025 Earnings Presentation with U.S. Regulators
• Negative Sentiment: Profitability disappointed: Q4 EPS missed materially (reported loss ~$0.18 vs. consensus around -$0.03) and the company swung to a net loss — investors punished the miss despite revenue strength. Klarna Group plc (KLAR) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Rising credit costs and a softer near-term outlook amplified concerns; Q1 revenue guidance ($900M–$980M) sits near consensus but credit reserve trajectory is the key risk for earnings recovery. Stock Market Today: Klarna shares plunge after Q4 results miss
• Negative Sentiment: Multiple brokerages cut price targets (JPMorgan, UBS, Keefe, Wells Fargo among others), lowering the near-term upside and signaling increased uncertainty about recovery timing. Analyst Price Target Updates
• Negative Sentiment: Several securities law firms have filed or issued lead-plaintiff reminders in class-action suits tied to Klarna’s IPO and disclosures — added legal overhang and potential litigation costs heighten investor risk. Bronstein, Gewirtz & Grossman LLC Urges Klarna Group plc Investors to Act

Hedge Funds Weigh In On Klarna Group

Institutional investors have recently added to or reduced their stakes in the stock. SC US Ttgp LTD. purchased a new stake in shares of Klarna Group during the third quarter worth approximately $2,016,821,000. Commonwealth Bank of Australia purchased a new position in Klarna Group during the 4th quarter worth $503,243,000. Wellington Management Group LLP acquired a new stake in shares of Klarna Group in the 3rd quarter worth $348,834,000. Dragoneer Investment Group LLC acquired a new stake in shares of Klarna Group in the 3rd quarter worth $303,595,000. Finally, Scge Management L.P. purchased a new stake in shares of Klarna Group in the third quarter valued at about $193,018,000.

Klarna Group Stock Down 5.9%

The stock has a market cap of $9.36 billion and a price-to-earnings ratio of -16.93. The company has a 50 day moving average price of $26.04.

About Klarna Group

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.