Upstart (NASDAQ:UPST) Shares Down 7% - Here's What Happened

Key Points

• Upstart Holdings, Inc. shares fell 7% during Thursday's trading, dropping to $62.18 after closing at $66.83, with trading volume down significantly at 3.3 million shares.
• Recent analyst ratings have varied, with Bank of America reducing its target from $88.00 to $87.00 while Needham & Company increased their target from $70.00 to $82.00, contributing to a consensus rating of "Hold" among analysts.
• Despite the recent downturn, Upstart reported a 101.6% year-over-year revenue increase in its latest earnings results, with revenue of $257.29 million surpassing analyst expectations.

Upstart Holdings, Inc. (NASDAQ:UPST - Get Free Report)'s share price traded down 7% during trading on Thursday . The company traded as low as $62.22 and last traded at $62.18. 3,318,195 shares changed hands during mid-day trading, a decline of 48% from the average session volume of 6,326,128 shares. The stock had previously closed at $66.83.

Analyst Ratings Changes

UPST has been the topic of a number of recent research reports. Bank of America dropped their price objective on Upstart from $88.00 to $87.00 and set a "neutral" rating on the stock in a report on Wednesday, August 6th. Needham & Company LLC reissued a "buy" rating and set a $82.00 price target (up from $70.00) on shares of Upstart in a research note on Wednesday, August 6th. Stephens began coverage on Upstart in a research note on Thursday, June 12th. They issued an "equal weight" rating and a $55.00 price target on the stock. The Goldman Sachs Group raised Upstart to a "sell" rating and set a $71.00 target price on the stock in a research note on Monday, July 14th. Finally, Barclays upped their target price on Upstart from $42.00 to $47.00 and gave the stock an "equal weight" rating in a report on Monday, May 12th. One analyst has rated the stock with a sell rating, eight have assigned a hold rating and five have issued a buy rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $77.85.

Upstart Trading Down 5.8%

The firm has a market cap of $6.06 billion, a P/E ratio of -786.83 and a beta of 2.39. The stock has a 50 day simple moving average of $69.66 and a 200-day simple moving average of $59.14.

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

Insider Activity at Upstart

In related news, CEO Dave Girouard sold 41,667 shares of the company's stock in a transaction dated Tuesday, July 15th. The shares were sold at an average price of $75.07, for a total transaction of $3,127,941.69. Following the transaction, the chief executive officer directly owned 52,614 shares in the company, valued at approximately $3,949,732.98. This represents a 44.19% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Sanjay Datta sold 13,512 shares of Upstart stock in a transaction that occurred on Tuesday, May 20th. The shares were sold at an average price of $46.97, for a total transaction of $634,658.64. Following the sale, the chief financial officer directly owned 311,356 shares of the company's stock, valued at $14,624,391.32. This represents a 4.16% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 151,650 shares of company stock worth $9,665,841. Company insiders own 16.67% of the company's stock.

Institutional Investors Weigh In On Upstart

Hedge funds have recently modified their holdings of the business. Virtus Fund Advisers LLC purchased a new stake in Upstart during the fourth quarter worth $32,000. Ameritas Advisory Services LLC purchased a new stake in shares of Upstart during the 2nd quarter worth $34,000. Steward Partners Investment Advisory LLC boosted its position in Upstart by 72.1% during the second quarter. Steward Partners Investment Advisory LLC now owns 864 shares of the company's stock valued at $56,000 after purchasing an additional 362 shares in the last quarter. Mackenzie Financial Corp purchased a new position in Upstart in the fourth quarter valued at about $62,000. Finally, Daiwa Securities Group Inc. raised its holdings in Upstart by 29.1% in the second quarter. Daiwa Securities Group Inc. now owns 1,068 shares of the company's stock worth $69,000 after purchasing an additional 241 shares in the last quarter. Hedge funds and other institutional investors own 63.01% of the company's stock.

Upstart Company Profile

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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