Klarna Group (NYSE:KLAR) Hits New 1-Year Low – Should You Sell?

Klarna Group plc (NYSE:KLAR)’s share price reached a new 52-week low during trading on Tuesday . The company traded as low as $27.44 and last traded at $27.63, with a volume of 553067 shares traded. The stock had previously closed at $29.00.

Key Stories Impacting Klarna Group

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

• Positive Sentiment: Analyst initiation — Seeking Alpha contributor initiates KLAR as a “Buy,” citing strong BNPL/neobank growth, FQ4’25 guidance, and potential return to adjusted EPS profitability in FY2026; notes operating?leverage upside but flags accounting caveats. Klarna Proves Itself A BNPL/Neobank Disruptor – Initiate Buy With Caveats
• Positive Sentiment: Product update — Coverage reports Klarna will offer an after?purchase BNPL option (expands payment choices and merchant product set), which could support revenue/TPV growth and investor sentiment if adoption scales. Klarna to offer after-purchase BNPL
• Neutral Sentiment: Bull case write?up — A thematic “Bull Case” piece outlines long?term upside tied to Klarna’s multi?product positioning; useful for investors thinking beyond near?term legal noise but less likely to move price short term. Klarna Group plc (KLAR): A Bull Case Theory
• Negative Sentiment: Investigation alleges material issues — Hagens Berman is investigating claims tied to a reported 102% spike in Klarna’s credit loss provision and potential understatement of risks in IPO disclosures; such allegations raise the prospect of damaging litigation, regulatory scrutiny, and potential financial restatements. KLAR ALERT: Hagens Berman Investigating Alleged Claims in Securities Class Action
• Negative Sentiment: Widespread class?action notices — Dozens of plaintiff firms have filed or issued deadline reminders (lead?plaintiff deadline Feb 20, 2026) alleging securities law violations tied to Klarna’s Sept 2025 IPO and the same Class Period; the cumulative legal attention creates a persistent overhang and potential settlement/liability risk. Levi & Korsinsky Reminds Shareholders of a Lead Plaintiff Deadline

Analyst Ratings Changes

Several research analysts have commented on KLAR shares. JPMorgan Chase & Co. cut their target price on Klarna Group from $50.00 to $45.00 and set an “overweight” rating for the company in a research note on Wednesday, November 19th. Bank of America cut their price objective on shares of Klarna Group from $51.00 to $46.00 and set a “buy” rating for the company in a research report on Tuesday, November 18th. Wedbush initiated coverage on shares of Klarna Group in a report on Monday, October 6th. They issued an “outperform” rating and a $50.00 price target for the company. Keefe, Bruyette & Woods decreased their price target on shares of Klarna Group from $52.00 to $45.00 and set an “outperform” rating on the stock in a report on Friday, January 2nd. Finally, Morgan Stanley dropped their price objective on Klarna Group from $43.00 to $39.00 and set an “equal weight” rating for the company in a research note on Wednesday, November 19th. Eleven research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Klarna Group has an average rating of “Moderate Buy” and an average price target of $46.60.

Klarna Group Trading Up 4.9%

The company has a market cap of $20.63 billion and a PE ratio of -44.22. The company’s 50-day simple moving average is $30.30.

Institutional Investors Weigh In On Klarna Group

Hedge funds have recently added to or reduced their stakes in the company. US Bancorp DE bought a new position in shares of Klarna Group during the 3rd quarter valued at about $30,000. BIT Capital GmbH purchased a new stake in Klarna Group in the third quarter worth approximately $37,000. Allworth Financial LP bought a new position in Klarna Group during the third quarter valued at approximately $37,000. Compagnie Lombard Odier SCmA purchased a new position in shares of Klarna Group during the third quarter worth approximately $42,000. Finally, TD Waterhouse Canada Inc. bought a new stake in shares of Klarna Group in the 3rd quarter worth approximately $43,000.

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.