Upstart (NASDAQ:UPST) Issues Quarterly Earnings Results

Key Points

• Upstart beat quarterly expectations: The company reported $0.33 in EPS versus the $0.20 consensus estimate and revenue of $370.52 million, up 33.7% year over year.
• Shares fell 7.4% despite the earnings beat, opening at $21.31 and trading near the lower end of their 12-month range.
• Analyst sentiment remains mixed, with a consensus rating of “Hold” and an average price target of $42.94; CEO Paul Gu purchased 50,000 shares, while insiders sold 148,652 shares during the quarter.

Upstart (NASDAQ:UPST - Get Free Report) posted its quarterly earnings data on Tuesday. The company reported $0.33 earnings per share for the quarter, beating the consensus estimate of $0.20 by $0.13, FiscalAI reports. Upstart had a net margin of 4.84% and a return on equity of 7.13%. The firm had revenue of $370.52 million during the quarter, compared to analysts' expectations of $362.68 million. During the same quarter last year, the company posted $0.23 EPS. The company's quarterly revenue was up 33.7% compared to the same quarter last year.

Upstart Stock Down 7.4%

Shares of UPST stock opened at $21.31 on Tuesday. Upstart has a 12-month low of $20.97 and a 12-month high of $52.10. The firm has a fifty day moving average of $25.15 and a 200-day moving average of $29.89. The firm has a market capitalization of $2.07 billion, a price-to-earnings ratio of 43.49, a price-to-earnings-growth ratio of 0.85 and a beta of 2.43.

Insiders Place Their Bets

In other Upstart news, CFO Andrea Blankmeyer sold 3,000 shares of the stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $29.33, for a total value of $87,990.00. Following the completion of the sale, the chief financial officer directly owned 152,208 shares in the company, valued at $4,464,260.64. This represents a 1.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 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. Also, CEO Paul Gu purchased 50,000 shares of the company's stock in a transaction dated Thursday, September 10th. The shares were acquired at an average cost of $25.55 per share, for a total transaction of $1,277,500.00. Following 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 SEC filing for this purchase provides additional information. Over the last quarter, insiders sold 148,652 shares of company stock worth $4,133,720. 17.29% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

UPST has been the topic of several research analyst reports. Needham & Company LLC reissued a "buy" rating and set a $42.00 price target on shares of Upstart in a research note on Tuesday, October 6th. Weiss Ratings cut shares of Upstart from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday, September 28th. Wall Street Zen raised Upstart from a "sell" rating to a "hold" rating in a report on Saturday, August 8th. Piper Sandler increased their price objective on Upstart from $46.00 to $51.00 and gave the company an "overweight" rating in a research report on Wednesday, August 5th. Finally, Citizens Jmp lowered their target price on Upstart from $20.00 to $18.00 and set a "market underperform" rating for the company in a research note on Thursday, October 15th. Seven investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $42.94.

About Upstart

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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