Upstart (NASDAQ:UPST) Sets New 12-Month Low Following Analyst Downgrade

Key Points

• Upstart shares fell to a new 52-week low of $22.21 after Goldman Sachs cut its price target from $39 to $28 while maintaining a neutral rating.
• Analyst sentiment remains mixed: eight analysts rate the stock a Buy, seven a Hold, and two a Sell, producing an overall “Hold” rating and an average price target of $43.06.
• Insiders sold 148,652 shares worth approximately $4.13 million over the past 90 days, while institutional investors own 63.01% of Upstart’s shares.

Upstart Holdings, Inc. (NASDAQ:UPST - Get Free Report) reached a new 52-week low during trading on Wednesday after The Goldman Sachs Group lowered their price target on the stock from $39.00 to $28.00. The Goldman Sachs Group currently has a neutral rating on the stock. Upstart traded as low as $22.21 and last traded at $22.6140, with a volume of 1,076,098 shares traded. The stock had previously closed at $23.83.

Several other research firms have also recently issued reports on UPST. BTIG Research restated a "buy" rating and set a $43.00 target price on shares of Upstart in a research note on Tuesday, September 22nd. Piper Sandler lifted their price target on shares of Upstart from $46.00 to $51.00 and gave the stock an "overweight" rating in a research note on Wednesday, August 5th. Needham & Company LLC reissued a "buy" rating and set a $42.00 price objective on shares of Upstart in a report on Tuesday, October 6th. Loop Capital started coverage on shares of Upstart in a report on Tuesday, September 8th. They set a "hold" rating and a $34.00 price objective for the company. Finally, Wall Street Zen upgraded shares of Upstart from a "sell" rating to a "hold" rating in a research report on Saturday, August 8th. Eight equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $43.06.

Insider Transactions at Upstart

In other news, insider Sanjay Datta sold 116,000 shares of the stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $27.29, for a total value of $3,165,640.00. Following the transaction, the insider owned 476,578 shares in the company, valued at $13,005,813.62. This represents a 19.58% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Natalia Mirgorodskaya sold 913 shares of the business's stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $30.03, for a total transaction of $27,417.39. Following the sale, the insider owned 35,875 shares of the company's stock, valued at $1,077,326.25. This trade represents a 2.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 148,652 shares of company stock worth $4,133,720 in the last ninety days. Insiders own 17.29% of the company's stock.

Institutional Investors Weigh In On Upstart

A number of hedge funds have recently modified their holdings of UPST. Farther Finance Advisors LLC raised its holdings in Upstart by 25.7% in the 3rd quarter. Farther Finance Advisors LLC now owns 4,307 shares of the company's stock worth $99,000 after purchasing an additional 881 shares during the period. Greenwich Wealth Management LLC purchased a new position in Upstart during the second quarter valued at $322,000. Sequoia Financial Advisors LLC bought a new stake in Upstart during the second quarter valued at about $254,000. Gemmer Asset Management LLC grew its holdings in Upstart by 17.0% during the second quarter. Gemmer Asset Management LLC now owns 29,707 shares of the company's stock valued at $1,053,000 after purchasing an additional 4,314 shares during the period. Finally, Integrated Wealth Concepts LLC purchased a new stake in Upstart in the second quarter worth about $248,000. Institutional investors own 63.01% of the company's stock.

Upstart Price Performance

The business has a 50-day simple moving average of $26.93 and a 200 day simple moving average of $29.17. The firm has a market cap of $2.21 billion, a PE ratio of 46.34, a PEG ratio of 0.84 and a beta of 2.43.

Upstart (NASDAQ:UPST - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $0.16 earnings per share for the quarter, missing analysts' consensus estimates of $0.18 by ($0.02). The company had revenue of $364.71 million for the quarter, compared to analysts' expectations of $354.74 million. Upstart had a net margin of 4.84% and a return on equity of 7.13%. The firm's quarterly revenue was up 41.9% on a year-over-year basis. During the same period in the previous year, the firm earned $0.36 earnings per share. On average, equities analysts forecast that Upstart Holdings, Inc. will post 0.72 earnings per share for the current fiscal year.

Upstart Company Profile

Upstart Holdings, Inc NASDAQ: UPST operates an artificial intelligence-powered lending platform that connects consumers seeking credit with banks and credit unions. Its technology is designed to evaluate a broader range of borrower information than traditional credit-scoring methods, with the goal of helping lending partners assess risk and automate portions of the application and underwriting process.

The company's platform supports lending products including personal loans, automotive loans and refinancing, and home equity lines of credit.

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