Upstart (NASDAQ:UPST) Shares Gap Down - Time to Sell?

Key Points

• Upstart Holdings' stock price gapped down from a close of $68.76 to an opening of $64.70 on Monday, with last trades at $65.67 on a volume of over 3.48 million shares.
• Analysts have mixed forecasts for Upstart, with price targets varying from $42.00 to $90.00, and a consensus rating of "Hold" with a target of $77.85.
• The company's recent earnings report showed a 101.6% increase in revenue year-over-year, with earnings per share of $0.36, exceeding analyst estimates.

Upstart Holdings, Inc. (NASDAQ:UPST - Get Free Report) gapped down prior to trading on Monday . The stock had previously closed at $68.76, but opened at $64.70. Upstart shares last traded at $65.67, with a volume of 3,482,011 shares changing hands.

Analyst Upgrades and Downgrades

UPST has been the subject of several recent research reports. Stephens initiated coverage on Upstart in a report on Thursday, June 12th. They issued an "equal weight" rating and a $55.00 price target for the company. Piper Sandler increased their price target on Upstart from $75.00 to $90.00 and gave the company an "overweight" rating in a report on Wednesday, August 6th. The Goldman Sachs Group upgraded Upstart to a "sell" rating and set a $71.00 price target for the company in a report on Monday, July 14th. Barclays increased their price target on Upstart from $42.00 to $47.00 and gave the company an "equal weight" rating in a report on Monday, May 12th. Finally, Needham & Company LLC reiterated a "buy" rating and issued a $82.00 price target (up from $70.00) on shares of Upstart in a report on Wednesday, August 6th. One analyst has rated the stock with a sell rating, eight have given a hold rating and five have given a buy rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and an average target price of $77.85.

Upstart Price Performance

The firm's 50-day moving average price is $69.66 and its 200 day moving average price is $59.14. The firm has a market cap of $5.97 billion, a P/E ratio of -776.89 and a beta of 2.39.

Upstart (NASDAQ:UPST - Get Free Report) last issued 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 net margin of 0.75% and a negative return on equity of 5.95%. The business had revenue of $257.29 million for the quarter, compared to analysts' expectations of $225.35 million. During the same quarter last year, the company posted ($0.17) earnings per share. The company's quarterly revenue was up 101.6% compared to the same quarter last year. Analysts forecast that Upstart Holdings, Inc. will post -0.03 earnings per share for the current year.

Insider Transactions at Upstart

In other news, CEO Dave Girouard sold 41,667 shares of the 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 owned 52,614 shares of the company's stock, valued at approximately $3,949,732.98. This trade represents a 44.19% decrease in their ownership of the stock. 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 the stock in a transaction dated Tuesday, May 20th. The stock was sold at an average price of $46.97, for a total transaction of $634,658.64. Following the transaction, the chief financial officer directly owned 311,356 shares in the company, valued at $14,624,391.32. The trade was a 4.16% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 151,650 shares of company stock valued at $9,665,841. Insiders own 16.67% of the company's stock.

Hedge Funds Weigh In On Upstart

A number of large investors have recently bought and sold shares of the business. Nebula Research & Development LLC raised its holdings in shares of Upstart by 578.8% during the second quarter. Nebula Research & Development LLC now owns 60,689 shares of the company's stock valued at $3,925,000 after buying an additional 51,749 shares during the last quarter. AXA S.A. bought a new stake in shares of Upstart during the second quarter valued at approximately $1,723,000. Daiwa Securities Group Inc. raised its holdings in shares of Upstart by 29.1% during the second quarter. Daiwa Securities Group Inc. now owns 1,068 shares of the company's stock valued at $69,000 after buying an additional 241 shares during the last quarter. Q Fund Management Hong Kong Ltd bought a new stake in shares of Upstart during the second quarter valued at approximately $11,235,000. Finally, Federated Hermes Inc. raised its holdings in shares of Upstart by 1,563.6% during the second quarter. Federated Hermes Inc. now owns 81,598 shares of the company's stock valued at $5,278,000 after buying an additional 76,693 shares during the last quarter. Institutional investors own 63.01% of the company's stock.

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.