Paul Purcell, the former director of Sezzle Inc. (NASDAQ:SEZL), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Purcell sold 2,401 shares of Sezzle's common stock on November 26, 2024. The shares were sold at an average price of $465.72 each, amounting to a total transaction value of approximately $1.12 million.
Following this transaction, Purcell holds 58,275 shares indirectly through Continental Investment Partners, LLC. This move comes as Purcell continues to adjust his investment portfolio after stepping down from his director role at the financial technology company.
In other recent news, Sezzle Inc. has made significant changes to its fiscal year and shareholder rights, as approved by stockholders in a recent annual meeting. The company has also removed 300 million authorized shares of "common prime stock" from its charter following its delisting from the Australian Securities Exchange. Sezzle's revised certificate includes the election of directors, with all nominated members elected by a majority of votes.
In addition, Sezzle has made significant adjustments to its credit and guaranty agreements, revising the conditions under which it can distribute dividends or repurchase its common stock. The company is now allowed to make restricted payments as long as it maintains a positive net income over the trailing twelve months. Sezzle's agreements with WebBank have also been revised, enhancing its role in issuing its subscription products, Sezzle Anywhere and Sezzle Premium.
Sezzle 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. B. Riley has given Sezzle a Buy rating, highlighting the company's potential for high growth at a low marginal cost. These recent developments reflect the company's ongoing efforts to streamline operations and enhance shareholder value.
InvestingPro Insights
Paul Purcell's decision to sell a portion of his Sezzle Inc. (NASDAQ:SEZL) holdings comes at a time when the company is experiencing significant growth and market attention. According to InvestingPro data, Sezzle's revenue growth in the last twelve months as of Q3 2024 stood at an impressive 49.13%, with quarterly revenue growth in Q3 2024 reaching 71.28%. This robust growth is reflected in the stock's performance, with a staggering 1-year price total return of 4090.27% as of the latest data.
The company's financial health appears strong, with InvestingPro Tips indicating that Sezzle's liquid assets exceed short-term obligations. Additionally, the company is expected to be profitable this year, with net income projected to grow. These factors may have contributed to the stock's significant return over the last week, month, and three months, as noted in the InvestingPro Tips.
However, investors should be aware that Sezzle is trading at a high earnings multiple, with a P/E ratio of 45.39. This valuation, combined with the stock's high price volatility, suggests that while the company has shown strong performance, it may also carry higher risk.
For those interested in a deeper analysis, InvestingPro offers 16 additional tips for Sezzle, providing a more comprehensive view of the company's prospects and potential risks.
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