Upstart Holdings, Inc. (NASDAQ:UPST) Given Average Recommendation of "Hold" by Analysts

Key Points

• Upstart Holdings has an average analyst rating of "Hold" from 16 firms, with 7 buy ratings, 6 hold ratings, and 3 sell ratings. The average 12-month price target is about $45.79.
• Recent earnings showed mixed results: Upstart reported EPS of -$0.07, missing estimates, but revenue came in at $308.21 million, above expectations and up 44.3% year over year.
• Insider activity was split, with director Dave Girouard buying 170,240 shares and insider Natalia Mirgorodskaya selling 974 shares. The company also has a $100 million share repurchase plan approved by its board.

Shares of Upstart Holdings, Inc. (NASDAQ:UPST - Get Free Report) have been assigned an average rating of "Hold" from the sixteen ratings firms that are currently covering the stock, Marketbeat.com reports. Three analysts have rated the stock with a sell rating, six have given a hold rating and seven have issued a buy rating on the company. The average twelve-month price target among brokers that have covered the stock in the last year is $45.7857.

A number of equities research analysts have commented on the company. BTIG Research reissued a "buy" rating and issued a $43.00 target price on shares of Upstart in a report on Wednesday, May 6th. B. Riley Financial reduced their target price on Upstart from $66.00 to $54.00 and set a "buy" rating for the company in a report on Wednesday, May 6th. Needham & Company LLC reduced their target price on Upstart from $40.00 to $37.00 and set a "buy" rating for the company in a report on Wednesday, May 6th. Piper Sandler reduced their target price on Upstart from $56.00 to $46.00 and set an "overweight" rating for the company in a report on Wednesday, May 6th. Finally, Compass Point raised Upstart from a "sell" rating to a "neutral" rating and raised their target price for the company from $20.00 to $30.00 in a report on Tuesday, February 17th.

Insider Buying and Selling

In other news, insider Natalia Mirgorodskaya sold 974 shares of the firm's stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $28.99, for a total value of $28,236.26. Following the completion of the transaction, the insider owned 37,374 shares in the company, valued at $1,083,472.26. This trade represents a 2.54% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Dave Girouard purchased 170,240 shares of the company's stock in a transaction dated Thursday, May 7th. The stock was purchased at an average price of $29.37 per share, with a total value of $4,999,948.80. Following the transaction, the director owned 8,512,941 shares of the company's stock, valued at approximately $250,025,077.17. This represents a 2.04% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders have sold 18,346 shares of company stock valued at $535,522 in the last quarter. Corporate insiders own 17.29% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Clearstead Advisors LLC purchased a new position in shares of Upstart in the third quarter valued at $25,000. Bayforest Capital Ltd purchased a new position in shares of Upstart in the fourth quarter valued at $25,000. Quarry LP increased its position in shares of Upstart by 749.2% in the third quarter. Quarry LP now owns 501 shares of the company's stock valued at $25,000 after buying an additional 442 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its position in shares of Upstart by 132.2% in the third quarter. Northwestern Mutual Wealth Management Co. now owns 771 shares of the company's stock valued at $39,000 after buying an additional 439 shares in the last quarter. Finally, Empowered Funds LLC purchased a new position in shares of Upstart in the fourth quarter valued at $40,000. Hedge funds and other institutional investors own 63.01% of the company's stock.

Upstart Price Performance

Upstart stock opened at $31.00 on Tuesday. Upstart has a 12 month low of $23.97 and a 12 month high of $87.30. The business has a 50 day simple moving average of $29.82 and a 200-day simple moving average of $35.78. The stock has a market capitalization of $2.97 billion, a PE ratio of 81.58, a price-to-earnings-growth ratio of 0.80 and a beta of 2.26.

Upstart (NASDAQ:UPST - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The company reported ($0.07) EPS for the quarter, missing the consensus estimate of $0.39 by ($0.46). Upstart had a return on equity of 5.63% and a net margin of 4.34%.The company had revenue of $308.21 million for the quarter, compared to analysts' expectations of $301.30 million. During the same quarter last year, the company earned $0.30 EPS. Upstart's revenue for the quarter was up 44.3% compared to the same quarter last year. As a group, equities research analysts anticipate that Upstart will post 0.92 EPS for the current year.

Upstart announced that its board has approved a share repurchase plan on Thursday, February 19th that allows the company to repurchase $100.00 million in shares. This repurchase authorization allows the company to buy up to 3.2% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's board believes its shares are undervalued.

Upstart Company Profile

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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