Key Points
- Upstart insider Sanjay Datta sold 7,985 shares on May 20 at an average price of $28.77, worth about $229,728. The sale reduced his stake by 2.37% and was made to cover tax withholding tied to equity awards.
- Upstart recently missed earnings expectations, reporting a loss of $0.07 per share versus the expected profit of $0.39, even though revenue rose 44.3% year over year to $308.21 million.
- Legal pressure remains a near-term concern, with multiple law firms reminding investors about the ongoing securities class action and a June 8 deadline, which could keep sentiment cautious around the stock.
Upstart Holdings, Inc. (NASDAQ:UPST - Get Free Report) insider Natalia Mirgorodskaya sold 526 shares of the firm's stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $28.77, for a total value of $15,133.02. Following the transaction, the insider owned 38,348 shares in the company, valued at $1,103,271.96. The trade was a 1.35% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.
Natalia Mirgorodskaya also recently made the following trade(s):
- On Wednesday, February 25th, Natalia Mirgorodskaya sold 866 shares of Upstart stock. The stock was sold at an average price of $28.79, for a total value of $24,932.14.
Upstart Stock Down 1.0%
UPST opened at $28.56 on Friday. The stock's fifty day moving average is $28.75 and its two-hundred day moving average is $36.46. The company has a market capitalization of $2.73 billion, a P/E ratio of 75.16, a PEG ratio of 0.77 and a beta of 2.26. Upstart Holdings, Inc. has a 52 week low of $23.97 and a 52 week high of $87.30.
Upstart (NASDAQ:UPST - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The company reported ($0.07) EPS for the quarter, missing the consensus estimate of $0.39 by ($0.46). The firm had revenue of $308.21 million for the quarter, compared to analysts' expectations of $301.30 million. Upstart had a return on equity of 5.63% and a net margin of 4.34%.The company's revenue for the quarter was up 44.3% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.30 earnings per share. Equities analysts anticipate that Upstart Holdings, Inc. will post 0.92 earnings per share for the current year.
Upstart declared that its board has approved a stock repurchase program on Thursday, February 19th that permits the company to buyback $100.00 million in outstanding shares. This buyback authorization permits the company to purchase up to 3.2% of its stock through open market purchases. Stock buyback programs are generally a sign that the company's leadership believes its stock is undervalued.
Key Stories Impacting Upstart
Here are the key news stories impacting Upstart this week:
- Negative Sentiment: Several law firms, including Faruqi & Faruqi, The Schall Law Firm, Rosen, Robbins, Pomerantz, Bronstein Gewirtz & Grossman, Bernstein Liebhard, SueWallSt, and Bragar Eagel & Squire, issued reminders or alerts about the ongoing Upstart securities fraud class action and the approaching June 8 deadline. Article Title
- Negative Sentiment: Pomerantz and other firms said the lawsuit was filed on behalf of investors who bought Upstart shares during the class period, alleging harm from the company’s disclosures and naming certain officers as defendants. Article Title
- Negative Sentiment: More legal follow-through from investor-rights firms suggests the litigation remains active and could keep sentiment cautious around Upstart in the near term. Article Title
- Neutral Sentiment: Upstart also announced upcoming fireside chats for its CFO and CEO at the Mizuho Technology Conference and Morgan Stanley U.S. Financials Conference, which could provide a near-term update on strategy and fundamentals. Article Title
- Neutral Sentiment: A commentary piece argued Upstart still has an AI-lending “moonshot” case, noting elevated short interest and ongoing debate over the company’s growth outlook. Article Title
Analyst Ratings Changes
UPST has been the topic of several research reports. Citizens Jmp restated a "market underperform" rating and set a $20.00 price objective on shares of Upstart in a report on Friday, February 13th. Citigroup downgraded Upstart from a "buy" rating to a "strong sell" rating in a report on Friday, February 13th. Piper Sandler cut their price target on Upstart from $56.00 to $46.00 and set an "overweight" rating on the stock in a report on Wednesday, May 6th. Morgan Stanley set a $35.00 price target on Upstart in a report on Thursday, May 7th. Finally, Needham & Company LLC cut their price target on Upstart from $40.00 to $37.00 and set a "buy" rating on the stock in a report on Wednesday, May 6th. Seven research analysts have rated the stock with a Buy rating, six have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $45.79.
Get Our Latest Report on UPST
Institutional Trading of Upstart
A number of institutional investors have recently made changes to their positions in the business. Janus Henderson Group PLC boosted its position in shares of Upstart by 15.1% in the 1st quarter. Janus Henderson Group PLC now owns 24,722 shares of the company's stock worth $634,000 after purchasing an additional 3,241 shares in the last quarter. Altshuler Shaham Ltd boosted its position in shares of Upstart by 40.0% in the 1st quarter. Altshuler Shaham Ltd now owns 37,800 shares of the company's stock worth $970,000 after purchasing an additional 10,800 shares in the last quarter. California State Teachers Retirement System boosted its position in shares of Upstart by 21.3% in the 1st quarter. California State Teachers Retirement System now owns 100,693 shares of the company's stock worth $2,583,000 after purchasing an additional 17,675 shares in the last quarter. Quantinno Capital Management LP boosted its position in shares of Upstart by 30.9% in the 1st quarter. Quantinno Capital Management LP now owns 103,860 shares of the company's stock worth $2,664,000 after purchasing an additional 24,492 shares in the last quarter. Finally, Entropy Technologies LP acquired a new stake in shares of Upstart in the 1st quarter worth $384,000. Institutional investors and hedge funds own 63.01% of the company's stock.
Upstart Company Profile
(
Get Free Report)
Upstart Holdings, Inc operates a cloud-based lending marketplace that leverages artificial intelligence and machine learning to assess borrower creditworthiness. The company partners with banks and credit unions, providing its proprietary AI models and underwriting platform to facilitate consumer credit products. By focusing on non‐traditional data points—such as education, employment history and other real‐time indicators—Upstart seeks to improve approval rates and lower loss rates compared with conventional credit scoring methods.
Upstart's core offering centers on unsecured personal loans, which borrowers can use for purposes such as debt consolidation, home improvements or major purchases.
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