Citigroup Issues Pessimistic Forecast for Upstart (NASDAQ:UPST) Stock Price

Key Points

• Citigroup has reduced its target price for Upstart's stock from $100.00 to $80.00 while maintaining a "buy" rating, indicating a potential upside of approximately 91.62% from the company's previous close.
• Other research firms such as JPMorgan Chase and Needham & Company have also downgraded their price targets, implying a consensus forecast of a hold rating with an average price target of $65.75.
• Upstart's stock has experienced a significant 9.7% decline, trading at $41.75, amid mixed analyst opinions and insider sales of company shares.

Upstart (NASDAQ:UPST - Get Free Report) had its target price cut by equities research analysts at Citigroup from $100.00 to $80.00 in a note issued to investors on Wednesday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. Citigroup's target price points to a potential upside of 91.62% from the company's previous close.

A number of other research firms have also recently commented on UPST. JPMorgan Chase & Co. cut their target price on Upstart from $88.00 to $65.00 and set an "overweight" rating for the company in a research note on Wednesday. Needham & Company LLC lowered their price objective on shares of Upstart from $82.00 to $56.00 and set a "buy" rating for the company in a report on Wednesday. BTIG Research reaffirmed a "neutral" rating on shares of Upstart in a research note on Wednesday. Stephens reduced their target price on shares of Upstart from $55.00 to $40.00 and set an "equal weight" rating on the stock in a report on Wednesday. Finally, Weiss Ratings reiterated a "sell (e+)" rating on shares of Upstart in a research report on Wednesday, October 8th. Six analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Upstart has a consensus rating of "Hold" and an average price target of $65.75.

Upstart Stock Down 9.7%

Shares of NASDAQ:UPST traded down $4.49 during midday trading on Wednesday, reaching $41.75. 21,897,626 shares of the company traded hands, compared to its average volume of 6,591,063. The firm's fifty day moving average price is $57.61 and its two-hundred day moving average price is $60.05. Upstart has a 12 month low of $31.40 and a 12 month high of $96.43. The firm has a market capitalization of $4.02 billion, a price-to-earnings ratio of -521.88 and a beta of 2.26.

Upstart (NASDAQ:UPST - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The company reported $0.36 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.27 by $0.09. Upstart had a negative return on equity of 5.95% and a negative net margin of 0.75%.The company had revenue of $257.29 million during the quarter, compared to analyst estimates of $225.35 million. During the same quarter last year, the company earned ($0.17) earnings per share. The firm's quarterly revenue was up 101.6% on a year-over-year basis. Analysts forecast that Upstart will post -0.03 earnings per share for the current year.

Insider Transactions at Upstart

In related news, insider Natalia Mirgorodskaya sold 1,439 shares of the business's stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $69.21, for a total transaction of $99,593.19. Following the sale, the insider owned 21,081 shares of the company's stock, valued at $1,459,016.01. The trade was a 6.39% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Kerry Whorton Cooper sold 500 shares of the firm's stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $69.21, for a total transaction of $34,605.00. Following the transaction, the director directly owned 25,434 shares of the company's stock, valued at $1,760,287.14. This represents a 1.93% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 106,214 shares of company stock worth $6,803,558. 16.67% of the stock is owned by insiders.

Institutional Investors Weigh In On Upstart

Several large investors have recently bought and sold shares of UPST. Cresset Asset Management LLC increased its stake in Upstart by 3.3% in the 2nd quarter. Cresset Asset Management LLC now owns 5,241 shares of the company's stock worth $339,000 after acquiring an additional 169 shares during the last quarter. Jennison Associates LLC lifted its position in Upstart by 1.8% during the second quarter. Jennison Associates LLC now owns 11,382 shares of the company's stock valued at $736,000 after purchasing an additional 205 shares during the last quarter. Wealth Enhancement Advisory Services LLC grew its stake in shares of Upstart by 3.0% in the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 7,448 shares of the company's stock worth $386,000 after buying an additional 218 shares in the last quarter. Daiwa Securities Group Inc. increased its holdings in shares of Upstart by 29.1% in the 2nd quarter. Daiwa Securities Group Inc. now owns 1,068 shares of the company's stock worth $69,000 after buying an additional 241 shares during the last quarter. Finally, Advisory Services Network LLC raised its position in shares of Upstart by 5.3% during the 2nd quarter. Advisory Services Network LLC now owns 5,399 shares of the company's stock valued at $349,000 after buying an additional 272 shares in the last quarter. 63.01% of the stock is currently owned by institutional investors.

Upstart Company Profile

Upstart Holdings, Inc, together with its subsidiaries, operates a cloud-based artificial intelligence (AI) lending platform in the United States. Its platform includes personal loans, automotive retail and refinance loans, home equity lines of credit, and small dollar loans that connects consumer demand for loans to its to bank and credit unions.

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