Key Points
- Upstart insider Sanjay Datta sold 8,945 shares worth $251,265 at an average price of $28.09, reducing his stake by 2.97%. The sale was made to cover tax withholding tied to vested equity awards.
- Upstart’s latest quarter showed 41.9% year-over-year revenue growth to $364.71 million, but EPS of $0.16 missed analysts’ $0.18 estimate. The stock traded near $30.30, with a consensus analyst rating of “Hold” and an average price target of $44.40.
- The planned Upstart Bank launch is a key potential growth catalyst, potentially improving funding access and enabling expansion into secured lending products. However, profitability and the company’s elevated valuation remain important risks.
Upstart Holdings, Inc. (NASDAQ:UPST - Get Free Report) insider Natalia Mirgorodskaya sold 586 shares of the stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $28.09, for a total transaction of $16,460.74. Following the sale, the insider directly owned 36,788 shares in the company, valued at $1,033,374.92. This represents a 1.57% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible 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 Tuesday, May 26th, Natalia Mirgorodskaya sold 974 shares of Upstart stock. The stock was sold at an average price of $28.99, for a total value of $28,236.26.
Upstart Price Performance
UPST stock opened at $30.30 on Friday. Upstart Holdings, Inc. has a 1 year low of $23.97 and a 1 year high of $76.95. The firm has a market capitalization of $2.95 billion, a P/E ratio of 61.84, a P/E/G ratio of 1.02 and a beta of 2.29. The business's 50-day moving average is $30.91 and its two-hundred day moving average is $30.30.
Upstart (NASDAQ:UPST - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The company reported $0.16 EPS for the quarter, missing the consensus estimate of $0.18 by ($0.02). The firm had revenue of $364.71 million for the quarter, compared to analyst estimates of $354.74 million. Upstart had a return on equity of 7.13% and a net margin of 4.84%.The company's revenue was up 41.9% on a year-over-year basis. During the same quarter last year, the firm earned $0.36 EPS. On average, analysts expect that Upstart Holdings, Inc. will post 0.72 EPS for the current year.
Institutional Investors Weigh In On Upstart
Institutional investors and hedge funds have recently made changes to their positions in the business. EMC Capital Management purchased a new stake in shares of Upstart in the second quarter valued at about $234,000. Headlands Technologies LLC increased its position in Upstart by 42.5% in the 2nd quarter. Headlands Technologies LLC now owns 113,300 shares of the company's stock valued at $4,014,000 after acquiring an additional 33,799 shares during the period. Two Sigma Securities LLC acquired a new position in Upstart in the 2nd quarter valued at about $255,000. Beacon Pointe Advisors LLC purchased a new stake in Upstart during the 2nd quarter valued at approximately $298,000. Finally, Orion Capital Management LLC purchased a new stake in Upstart during the 2nd quarter valued at approximately $96,000. 63.01% of the stock is owned by hedge funds and other institutional investors.
Upstart News Summary
Here are the key news stories impacting Upstart this week:
- Positive Sentiment: Planned Upstart Bank is the main bullish catalyst. CEO Paul Gu said Upstart expects to launch Upstart Bank early next year as part of the company’s “second leg” of development. Management believes the bank could improve access to funding, increase control over loan origination, and support expansion into secured products such as home and auto lending. Upstart Is Up After Announcing Plans to Launch Upstart Bank
- Positive Sentiment: Some analysts see meaningful upside. A recent analysis estimated that UPST could be approximately 28% undervalued if management can make its AI lending platform consistently profitable and successfully broaden into secured credit. The company’s consensus price target of $44.40 also remains above recent trading levels, although the average rating is “Hold.” Upstart Could Be 28% Undervalued
- Neutral Sentiment: Recent insider sales appear primarily tax-related. Sanjay Datta sold 10,000 shares for approximately $314,600 on August 19 and another 8,945 shares for about $251,265 on August 20. Natalia Mirgorodskaya sold 586 shares for approximately $16,461, while CFO Andrea Blankmeyer also reported August sales. The filings state that the transactions covered tax withholding obligations tied to vested equity awards, making them a weaker bearish signal; the executives retained significant holdings. SEC Insider Trading Filing
- Negative Sentiment: Profitability and valuation remain risks. Upstart’s latest quarterly EPS of $0.16 missed the $0.18 consensus estimate, despite revenue growing 41.9% year over year to $364.71 million. With a relatively high earnings multiple and recent share-price weakness, investors may remain cautious until the bank strategy produces sustained profits. Why Upstart Stock Slid
Analyst Ratings Changes
A number of analysts have recently commented on the company. The Goldman Sachs Group lifted their target price on Upstart from $32.00 to $39.00 and gave the stock a "neutral" rating in a research report on Thursday, July 9th. Weiss Ratings upgraded Upstart from a "sell (d)" rating to a "hold (c-)" rating in a research note on Monday. Mizuho set a $45.00 price target on Upstart in a research report on Friday, May 8th. Needham & Company LLC boosted their price objective on Upstart from $40.00 to $42.00 and gave the company a "buy" rating in a research note on Wednesday, August 5th. Finally, Jefferies Financial Group reissued a "hold" rating and issued a $30.00 price objective on shares of Upstart in a report on Tuesday, June 9th. Eight research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $44.40.
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About Upstart
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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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