Upstart Holdings, Inc. (NASDAQ:UPST) Sees Significant Growth in Short Interest

Key Points

• Upstart Holdings, Inc. experienced a significant increase in short interest, rising by 28.1% in August, bringing the total to 22.46 million shares.
• The company reported earnings of $0.36 per share in its most recent quarter, exceeding analysts' expectations of $0.27, with a year-over-year revenue increase of 101.6%.
• Analysts have shown positive sentiment towards Upstart, with several raising their target prices, resulting in a consensus price target of $78.54 and a general "Hold" rating among research analysts.

Upstart Holdings, Inc. (NASDAQ:UPST - Get Free Report) saw a significant increase in short interest in the month of August. As of August 15th, there was short interest totaling 22,460,000 shares, anincreaseof28.1% from the July 31st total of 17,530,000 shares. Based on an average daily trading volume, of 6,320,000 shares, the days-to-cover ratio is presently 3.6 days. Based on an average daily trading volume, of 6,320,000 shares, the days-to-cover ratio is presently 3.6 days.

Upstart Trading Up 2.0%

UPST opened at $68.22 on Tuesday. The firm has a market capitalization of $6.56 billion, a PE ratio of -852.75 and a beta of 2.37. Upstart has a twelve month low of $31.40 and a twelve month high of $96.43. The firm's 50-day moving average price is $72.98 and its 200 day moving average price is $58.30.

Upstart (NASDAQ:UPST - Get Free Report) last posted its quarterly earnings results on Tuesday, August 5th. The company reported $0.36 earnings per share for the quarter, topping analysts' consensus estimates of $0.27 by $0.09. The firm had revenue of $257.29 million for the quarter, compared to analyst estimates of $225.35 million. Upstart had a negative net margin of 0.75% and a negative return on equity of 5.95%. Upstart's quarterly revenue was up 101.6% on a year-over-year basis. During the same period in the previous year, the business posted ($0.17) earnings per share. Upstart has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. As a group, analysts predict that Upstart will post -0.03 earnings per share for the current fiscal year.

Insider Buying and Selling at Upstart

In other Upstart news, CTO Paul Gu sold 5,000 shares of the firm's stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $68.61, for a total value of $343,050.00. Following the completion of the sale, the chief technology officer directly owned 1,147,156 shares in the company, valued at $78,706,373.16. This trade represents a 0.43% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Natalia Mirgorodskaya sold 6,533 shares of the firm's stock in a transaction that occurred on Wednesday, July 2nd. The shares were sold at an average price of $70.06, for a total transaction of $457,701.98. Following the completion of the sale, the insider owned 24,623 shares of the company's stock, valued at approximately $1,725,087.38. This trade represents a 20.97% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 200,081 shares of company stock valued at $13,010,750. 16.67% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Upstart

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Two Sigma Advisers LP boosted its holdings in Upstart by 190.2% in the 4th quarter. Two Sigma Advisers LP now owns 1,709,300 shares of the company's stock valued at $105,242,000 after purchasing an additional 1,120,300 shares during the last quarter. Norges Bank acquired a new position in Upstart in the 2nd quarter valued at about $67,777,000. Mane Global Capital Management LP acquired a new position in Upstart in the 2nd quarter valued at about $43,576,000. Man Group plc acquired a new position in Upstart in the 4th quarter valued at about $36,464,000. Finally, Invesco Ltd. boosted its holdings in Upstart by 79.0% in the 1st quarter. Invesco Ltd. now owns 1,270,352 shares of the company's stock valued at $58,474,000 after purchasing an additional 560,668 shares during the last quarter. 63.01% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on UPST shares. Needham & Company LLC restated a "buy" rating and issued a $82.00 target price (up from $70.00) on shares of Upstart in a research note on Wednesday, August 6th. Morgan Stanley restated an "equal weight" rating on shares of Upstart in a research report on Wednesday, August 6th. Piper Sandler boosted their target price on shares of Upstart from $75.00 to $90.00 and gave the company an "overweight" rating in a research report on Wednesday, August 6th. Stephens started coverage on shares of Upstart in a research report on Thursday, June 12th. They set an "equal weight" rating and a $55.00 target price for the company. Finally, The Goldman Sachs Group upgraded shares of Upstart to a "sell" rating and set a $71.00 target price for the company in a research report on Monday, July 14th. Six research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $78.54.

About Upstart

Upstart Holdings, Inc, together with its subsidiaries, operates a cloud-based artificial intelligence (AI) lending platform in the United States. Its platform includes personal loans, automotive retail and refinance loans, home equity lines of credit, and small dollar loans that connects consumer demand for loans to its to bank and credit unions.

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