Upstart Holdings, Inc. $UPST Shares Purchased by Dimensional Fund Advisors LP

Key Points

• Dimensional Fund Advisors increased its Upstart stake by 267.1% in the first quarter, acquiring 744,190 additional shares to own 1.02 million shares worth approximately $26.2 million, or 1.07% of the company.
• Upstart reported second-quarter revenue of $364.7 million, up 41.9% year over year and above analyst expectations, although EPS of $0.16 missed consensus estimates. Management maintained full-year revenue guidance of about $1.4 billion and highlighted a potential bank launch following conditional OCC approval.
• Investor sentiment remains mixed: 63.01% of shares are held by institutions, but insiders have recently sold stock, while analysts’ views range from sell to buy. The stock has a consensus “Hold” rating and an average price target of $44.40.

Dimensional Fund Advisors LP boosted its holdings in Upstart Holdings, Inc. (NASDAQ:UPST - Free Report) by 267.1% during the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 1,022,780 shares of the company's stock after acquiring an additional 744,190 shares during the period. Dimensional Fund Advisors LP owned about 1.07% of Upstart worth $26,234,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. Bayforest Capital Ltd acquired a new stake in shares of Upstart during the 4th quarter worth approximately $25,000. Quarry LP grew its position in shares of Upstart by 749.2% during the third quarter. Quarry LP now owns 501 shares of the company's stock worth $25,000 after acquiring an additional 442 shares during the last quarter. Northwestern Mutual Wealth Management Co. increased its holdings in shares of Upstart by 132.2% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 771 shares of the company's stock worth $39,000 after acquiring an additional 439 shares during the period. Empowered Funds LLC bought a new position in Upstart in the 4th quarter worth about $40,000. Finally, Bogart Wealth LLC acquired a new stake in shares of Upstart in the fourth quarter valued at approximately $44,000. 63.01% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Upstart

Here are the key news stories impacting Upstart this week:

• Positive Sentiment: Upstart reported approximately 50% year-over-year growth in loan originations and second-quarter revenue of about $365 million, up roughly 42% and above Wall Street’s estimate. Management also highlighted record contribution profit and a return to GAAP profitability. Upstart Loan Originations Jump 50% as It Preps Bank Launch
• Positive Sentiment: The company maintained full-year revenue guidance of approximately $1.4 billion, while recent funding agreements and more than $4 billion in committed capital support confidence in its ability to expand lending volume.
• Positive Sentiment: Upstart’s planned bank launch, following conditional OCC approval, is viewed as a potential way to simplify its operating structure and improve access to funding. Needham raised its price target to $42, Piper Sandler to $51 with an overweight rating, and BTIG reaffirmed its $43 buy target.
• Positive Sentiment: Options activity was elevated, with traders purchasing about 25,245 call contracts versus typical volume of 22,304, indicating increased bullish speculation.
• Neutral Sentiment: Shares initially rose sharply following the earnings release but subsequently gave back some of those gains, reflecting uncertainty over whether the improved growth can persist in a difficult credit and interest-rate environment.
• Neutral Sentiment: UPST remains a high-volatility stock, with a beta of 2.29, and trades near its 50-day and 200-day moving averages. Its median analyst price target is approximately $40, well above the current level, but estimates vary widely.
• Negative Sentiment: Earnings quality was mixed: one widely cited company report showed quarterly EPS of $0.16, below the $0.19 consensus estimate, even though revenue exceeded expectations. Other sources reported adjusted EPS of $0.59, creating uncertainty about the appropriate measure of profitability.
• Negative Sentiment: Insiders have made substantially more sales than purchases during the past six months, while institutional ownership changes were mixed. These transactions may weigh on sentiment after the recent rally.

Upstart Price Performance

Shares of Upstart stock opened at $30.20 on Thursday. Upstart Holdings, Inc. has a 52-week low of $23.97 and a 52-week high of $80.50. The firm has a market capitalization of $2.89 billion, a PE ratio of 61.63, a price-to-earnings-growth ratio of 0.81 and a beta of 2.29. The company's fifty day moving average price is $31.30 and its two-hundred day moving average price is $31.45.

Upstart (NASDAQ:UPST - Get Free Report) last issued its earnings results on Tuesday, August 4th. The company reported $0.16 earnings per share for the quarter, missing the consensus estimate of $0.18 by ($0.02). The business had revenue of $364.71 million for the quarter, compared to analyst estimates of $354.74 million. Upstart had a net margin of 4.84% and a return on equity of 7.22%. Upstart's revenue was up 41.9% on a year-over-year basis. During the same quarter last year, the firm posted $0.36 earnings per share. Analysts predict that Upstart Holdings, Inc. will post 0.92 earnings per share for the current fiscal year.

Insider Buying and Selling at Upstart

In other Upstart news, insider Natalia Mirgorodskaya sold 974 shares of Upstart stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $28.99, for a total transaction of $28,236.26. Following the sale, the insider directly owned 37,374 shares of the company's stock, valued at approximately $1,083,472.26. The trade was a 2.54% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Sanjay Datta sold 15,000 shares of the stock in a transaction that occurred on Tuesday, June 9th. The stock was sold at an average price of $30.41, for a total value of $456,150.00. Following the completion of the transaction, the insider directly owned 313,556 shares of the company's stock, valued at approximately $9,535,237.96. The trade was a 4.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 33,346 shares of company stock worth $991,672 in the last three months. 17.29% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on UPST. Wall Street Zen cut Upstart from a "hold" rating to a "sell" rating in a research report on Saturday, June 27th. Weiss Ratings restated a "sell (d)" rating on shares of Upstart in a report on Monday. BTIG Research reiterated a "buy" rating and set a $43.00 price objective on shares of Upstart in a report on Wednesday. Jefferies Financial Group reissued a "hold" rating and set a $30.00 price objective on shares of Upstart in a research report on Tuesday, June 9th. Finally, Citigroup lowered their price target on Upstart from $80.00 to $61.00 and set a "buy" rating for the company in a research note on Wednesday, July 22nd. Eight equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $44.40.

About Upstart

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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