Upstart (NASDAQ:UPST) Stock Gets Price Target Cut from Morgan Stanley

Key Points

• Morgan Stanley cut Upstart’s price target from $35 to $24 and maintained an “equal weight” rating; the new target implies just 1.79% upside from the stock’s then-current price.
• Analyst opinions remain mixed: MarketBeat reported a consensus “Hold” rating and average price target of $36.38, with seven Buy, eight Hold, and three Sell recommendations.
• Upstart beat quarterly earnings and revenue estimates, with revenue rising 33.7% year over year. CEO Paul Gu also bought 50,000 shares at an average price of $25.55.

Upstart (NASDAQ:UPST - Get Free Report) had its target price decreased by Morgan Stanley from $35.00 to $24.00 in a report released on Wednesday, Benzinga reports. The brokerage presently has an "equal weight" rating on the stock. Morgan Stanley's target price suggests a potential upside of 1.79% from the stock's current price.

Several other brokerages also recently weighed in on UPST. Needham & Company LLC dropped their price objective on Upstart from $42.00 to $30.00 and set a "buy" rating for the company in a research report on Tuesday. Citigroup reiterated a "market underperform" rating on shares of Upstart in a research report on Thursday, October 15th. Loop Capital began coverage on shares of Upstart in a report on Tuesday, September 8th. They issued a "hold" rating and a $34.00 target price for the company. The Goldman Sachs Group dropped their target price on shares of Upstart from $28.00 to $24.00 and set a "neutral" rating for the company in a report on Wednesday. Finally, Truist Financial reduced their price target on shares of Upstart from $40.00 to $30.00 and set a "buy" rating on the stock in a research note on Wednesday. Seven investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, Upstart currently has an average rating of "Hold" and a consensus price target of $36.38.

Upstart Price Performance

NASDAQ:UPST traded up $2.21 during mid-day trading on Wednesday, reaching $23.58. The stock had a trading volume of 4,554,407 shares, compared to its average volume of 4,675,484. The stock has a 50-day simple moving average of $24.98 and a two-hundred day simple moving average of $29.76. The stock has a market capitalization of $2.29 billion, a PE ratio of 48.15, a P/E/G ratio of 0.75 and a beta of 2.48. Upstart has a 12 month low of $20.59 and a 12 month high of $52.10.

Upstart (NASDAQ:UPST - Get Free Report) last released its earnings results on Tuesday, November 3rd. The company reported $0.33 earnings per share for the quarter, topping the consensus estimate of $0.20 by $0.13. The firm had revenue of $370.52 million during the quarter, compared to analysts' expectations of $362.68 million. Upstart had a return on equity of 7.13% and a net margin of 4.84%. The company's quarterly revenue was up 33.7% on a year-over-year basis. During the same period in the prior year, the company earned $0.23 earnings per share. Equities analysts expect that Upstart will post 0.72 EPS for the current year.

Insider Transactions at Upstart

In other news, CEO Paul Gu bought 50,000 shares of the company's stock in a transaction on Thursday, September 10th. The stock was purchased at an average cost of $25.55 per share, for a total transaction of $1,277,500.00. Following the completion of the transaction, the chief executive officer owned 130,000 shares of the company's stock, valued at $3,321,500. This trade represents a 62.50% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Andrea Blankmeyer sold 3,000 shares of Upstart stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $29.33, for a total value of $87,990.00. Following the sale, the chief financial officer directly owned 152,208 shares in the company, valued at $4,464,260.64. The trade was a 1.93% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 148,652 shares of company stock worth $4,133,720. 17.29% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Dimensional Fund Advisors LP raised its stake in Upstart by 267.1% during the first quarter. Dimensional Fund Advisors LP now owns 1,022,780 shares of the company's stock worth $26,234,000 after buying an additional 744,190 shares during the last quarter. First Trust Advisors LP boosted its position in Upstart by 17.2% during the first quarter. First Trust Advisors LP now owns 373,455 shares of the company's stock valued at $9,579,000 after acquiring an additional 54,908 shares during the last quarter. GC Wealth Management RIA LLC grew its holdings in Upstart by 38.1% during the 1st quarter. GC Wealth Management RIA LLC now owns 344,646 shares of the company's stock worth $8,840,000 after acquiring an additional 95,172 shares during the period. Bank of New York Mellon Corp acquired a new stake in Upstart during the 2nd quarter worth about $9,681,000. Finally, Alberta Investment Management Corp acquired a new stake in Upstart during the 2nd quarter worth about $8,461,000. Institutional investors own 63.01% of the company's stock.

More Upstart News

Here are the key news stories impacting Upstart this week:

• Positive Sentiment: Upstart reported better-than-expected Q3 results, with revenue up about 34% year over year. Contribution profit reached a record, and its secured-loan business turned profitable—signs of improving business performance despite a challenging environment. 3 Key Takeaways From Upstart's Latest Report
• Neutral Sentiment: B. Riley and BTIG reaffirmed Buy ratings, while lowering their price targets to $42 and $40, respectively. The continued Buy ratings are supportive, but the target reductions signal more cautious expectations. B. Riley recommendations
• Negative Sentiment: Management lowered its 2026 outlook, citing macroeconomic risks, rising credit risk and higher funding costs. Balance-sheet pressure may constrain growth and profitability, tempering the positive impact of the Q3 beat. UPST Q3 Earnings Call Highlights Macro Risks and Revised Outlook

Upstart Company Profile

Upstart Holdings, Inc NASDAQ: UPST operates an artificial intelligence-powered lending marketplace. Its platform connects consumers seeking credit with banks and credit unions, using data-driven underwriting models designed to evaluate applicants beyond traditional credit-score-based methods.

The company provides technology for several lending categories, including personal loans, automotive retail and refinance lending, home equity lines of credit, and small-dollar lending. Upstart's platform supports financial institutions with application processing, risk assessment, loan origination, and related automation, while offering consumers a digital borrowing experience.

Founded in 2012, Upstart is headquartered in San Mateo, California, and primarily serves the United States.

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