Klarna Shares (KLAR) Jumps 10% as Chair Buys $50 Million Worth of the Beaten-Down Stock

FomoAnxiety · 2026-03-13T22:18:19+00:00

Klarna's stock rose 10% after Chairman Michael Moritz bought $50 million worth of shares, aiming to assure investors amid a 62% decline since its IPO. Analysts rate it a Moderate Buy, with a price target suggesting significant upside potential.

FomoAnxiety

2026-03-13 22:18:19

Abstract generation in progress

Shares of digital bank Klarna KLAR +8.82% ▲ are up 10% on news that the company’s chairman has purchased $50 million worth of the beaten-down stock.

Claim 70% Off TipRanks Premium

Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
Stay ahead of the market with the latest news and analysis and maximize your portfolio’s potential

Klarna, which is essentially a buy now, pay later lender, went public last September. Since then, the stock has declined 62%, including a 44% pullback so far this year. KLAR stock has been punished by a general downturn in the financial technology (fintech) sector, especially among buy now, pay later firms, and over worries about disruptions from artificial intelligence (AI).

However, the company’s Chairman Michael Moritz remains a believer. He purchased nearly 3.5 million shares of KLAR stock worth $50 million from March 3 to 11, according to a regulatory filing with the U.S. Securities and Exchange Commission (SEC).

A Vote of Confidence in Klarna

The big stock purchase by the board chair on the open market is aimed at allaying investor worries about the share price decline. Moritz’s purchase also comes as the six-month post-IPO lock-up period for selling the stock expires, which has led to other company insiders selling their shares. KLAR stock fell 11% on March 12 due to heavy selling.

Analysts say Klarna faces problems as the buy now, pay later space comes under pressure. Credit quality is a growing concern on Wall Street, as is Klarna’s business that lets shoppers pay for goods online in small installments, often without credit checks and at 0% interest. Some on Wall Street are starting to see similarities to the subprime lending mess that led to the 2008 financial crisis.

Is KLAR Stock a Buy?

Klarna’s stock has a consensus Moderate Buy rating among 13 Wall Street analysts. That rating is based on nine Buy and four Hold recommendations issued in the last three months. The average KLAR price target of $27.27 implies 71.29% upside from current levels.

Disclaimer & DisclosureReport an Issue

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.