Upstart (NASDAQ:UPST) Sets New 12-Month Low - What's Next?

Key Points

• Upstart shares fell to a new 52-week low of $23.72, closing near $24.29, below both its 50-day and 200-day moving averages.
• Analysts maintain a consensus “Hold” rating with an average price target of $43.75, while recent targets range from $30 to $61. The company’s latest quarter showed 41.9% year-over-year revenue growth to $364.71 million, but earnings per share of $0.16 missed estimates.
• Insider activity was mixed: CEO Paul Gu purchased 50,000 shares, while the CFO sold shares under a pre-arranged plan to cover tax obligations. Institutional investors own approximately 63.01% of Upstart’s stock.

Upstart Holdings, Inc. (NASDAQ:UPST - Get Free Report)'s stock price hit a new 52-week low during trading on Thursday . The stock traded as low as $23.72 and last traded at $24.29, with a volume of 1315240 shares trading hands. The stock had previously closed at $24.45.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on UPST. Needham & Company LLC raised their target price on Upstart from $40.00 to $42.00 and gave the stock a "buy" rating in a research note on Wednesday, August 5th. Citigroup dropped their price objective on Upstart from $80.00 to $61.00 and set a "buy" rating for the company in a report on Wednesday, July 22nd. Wall Street Zen upgraded Upstart from a "sell" rating to a "hold" rating in a research report on Saturday, August 8th. The Goldman Sachs Group boosted their target price on Upstart from $32.00 to $39.00 and gave the company a "neutral" rating in a research note on Thursday, July 9th. Finally, Jefferies Financial Group restated a "hold" rating and set a $30.00 target price on shares of Upstart in a report on Tuesday, June 9th. Eight investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $43.75.

Upstart Price Performance

The company has a market capitalization of $2.40 billion, a P/E ratio of 50.24, a P/E/G ratio of 0.92 and a beta of 2.16. The stock's 50 day moving average is $28.26 and its 200-day moving average is $29.50.

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 the consensus estimate of $0.18 by ($0.02). Upstart had a net margin of 4.84% and a return on equity of 7.13%. The firm had revenue of $364.71 million for the quarter, compared to the consensus estimate of $354.74 million. During the same period in the previous year, the firm posted $0.36 earnings per share. The business's revenue was up 41.9% compared to the same quarter last year. On average, equities research analysts anticipate that Upstart Holdings, Inc. will post 0.72 EPS for the current year.

Insider Transactions at Upstart

In other news, CFO Andrea Blankmeyer sold 7,175 shares of the company's stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $29.36, for a total value of $210,658.00. Following the sale, the chief financial officer directly owned 155,208 shares of the company's stock, valued at $4,556,906.88. This represents a 4.42% decrease in their position. The transaction was disclosed in a 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 firm's stock in a transaction that occurred on Thursday, September 10th. The stock was acquired at an average price of $25.55 per share, with a total value of $1,277,500.00. Following the completion of the purchase, the chief executive officer owned 130,000 shares in the company, valued at $3,321,500. This represents a 62.50% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last quarter, insiders have sold 148,652 shares of company stock worth $4,133,720. 17.29% of the stock is owned by company insiders.

Institutional Investors Weigh In On Upstart

Several hedge funds have recently bought and sold shares of the business. Geneos Wealth Management Inc. lifted its holdings in shares of Upstart by 274.4% during the first quarter. Geneos Wealth Management Inc. now owns 1,842 shares of the company's stock valued at $47,000 after purchasing an additional 1,350 shares during the last quarter. Eurizon Capital SGR S.p.A. bought a new position in Upstart during the 4th quarter valued at approximately $48,000. Osbon Capital Management LLC bought a new position in Upstart during the 4th quarter valued at approximately $49,000. Hollencrest Capital Management purchased a new position in Upstart during the first quarter valued at $51,000. Finally, Clearstead Advisors LLC boosted its holdings in Upstart by 200.0% in the fourth quarter. Clearstead Advisors LLC now owns 1,500 shares of the company's stock worth $66,000 after acquiring an additional 1,000 shares in the last quarter. Institutional investors own 63.01% of the company's stock.

Upstart Company Profile

Upstart Holdings, Inc is a financial technology company that operates an artificial intelligence-powered lending marketplace. Its platform connects consumers seeking credit with banks and credit unions, using alternative data and machine-learning models alongside traditional credit information to help lending partners evaluate applicants and originate loans.

The company's offerings include technology for personal lending, auto lending and home equity lending. Upstart provides tools that support the application, underwriting and loan-origination process, while participating financial institutions generally fund and service the loans.

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