Upstart (NASDAQ:UPST) Stock Price Down 4.9% - Here's Why

Key Points

• Upstart's stock price fell by 4.9% to $64.58, with trading volume declining significantly to around 3.2 million shares, half of its average daily volume.
• Equities analysts have varied opinions on Upstart, with five ratings as "Buy," seven as "Hold," and one as "Sell," while the average price target stands at $81.08.
• Upstart reported a quarterly earnings surpassing estimates with $0.36 EPS against an expectation of $0.27, alongside a revenue of $257.29 million, indicating a year-over-year increase of 101.6%.

Upstart Holdings, Inc. (NASDAQ:UPST - Get Free Report)'s stock price dropped 4.9% on Monday . The stock traded as low as $64.36 and last traded at $64.58. Approximately 3,211,317 shares changed hands during trading, a decline of 50% from the average daily volume of 6,386,299 shares. The stock had previously closed at $67.89.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the stock. JPMorgan Chase & Co. raised shares of Upstart from a "neutral" rating to an "overweight" rating and decreased their price target for the stock from $93.00 to $88.00 in a research note on Wednesday, August 20th. Bank of America decreased their price target on shares of Upstart from $88.00 to $87.00 and set a "neutral" rating on the stock in a research note on Wednesday, August 6th. Piper Sandler raised their price target on shares of Upstart from $75.00 to $90.00 and gave the stock an "overweight" rating in a research note on Wednesday, August 6th. Needham & Company LLC reaffirmed 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. Finally, The Goldman Sachs Group raised shares of Upstart to a "sell" rating and set a $71.00 price target on the stock in a research note on Monday, July 14th. Five analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $81.08.

Upstart Stock Down 4.3%

The firm's 50-day simple moving average is $71.39 and its 200 day simple moving average is $58.43. The stock has a market capitalization of $6.25 billion, a P/E ratio of -812.24 and a beta of 2.37.

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. The firm had revenue of $257.29 million for the quarter, compared to analysts' expectations of $225.35 million. Upstart had a negative net margin of 0.75% and a negative return on equity of 5.95%. Upstart's revenue for the quarter was up 101.6% compared to the same quarter last year. During the same period in the previous year, the business earned ($0.17) earnings per share. Upstart has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. As a group, equities analysts anticipate that Upstart Holdings, Inc. will post -0.03 EPS for the current fiscal year.

Insider Activity

In other Upstart news, CTO Paul Gu sold 5,000 shares of the business's stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $68.61, for a total transaction of $343,050.00. Following the sale, the chief technology officer owned 1,147,156 shares in the company, valued at approximately $78,706,373.16. The trade was a 0.43% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Sanjay Datta sold 13,473 shares of the business's stock in a transaction dated Wednesday, August 20th. The stock was sold at an average price of $61.12, for a total value of $823,469.76. Following the sale, the chief financial officer owned 297,904 shares in the company, valued at approximately $18,207,892.48. The trade was a 4.33% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 158,414 shares of company stock worth $10,709,482. 16.67% of the stock is owned by company insiders.

Institutional Investors Weigh In On Upstart

A number of large investors have recently added to or reduced their stakes in the stock. Orion Porfolio Solutions LLC bought a new stake in Upstart during the second quarter worth approximately $217,000. Newbridge Financial Services Group Inc. boosted its position in Upstart by 16.8% during the second quarter. Newbridge Financial Services Group Inc. now owns 10,064 shares of the company's stock worth $651,000 after purchasing an additional 1,445 shares during the period. Marex Group plc bought a new stake in Upstart during the second quarter worth approximately $11,820,000. Advisory Services Network LLC boosted its position in Upstart by 5.3% during the second quarter. Advisory Services Network LLC now owns 5,399 shares of the company's stock worth $349,000 after purchasing an additional 272 shares during the period. Finally, State of Wyoming bought a new stake in Upstart during the second quarter worth approximately $61,000. 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.

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