Upstart (NASDAQ:UPST) Trading Down 7.2% - Time to Sell?

Key Points

• Upstart Holdings, Inc. shares fell by 7.2% during mid-day trading, dropping to a low of $62.16 before recovering slightly to $63.95, with trading volume down 17% from the average.
• Analyst ratings for Upstart are mixed, with one upgrade to "overweight" and a downward revision of target prices, leading to an average target of $78.54, indicating a cautious outlook.
• Despite the recent stock decline, Upstart reported a 101.6% year-over-year revenue increase to $257.29 million in its latest quarterly earnings, beating analysts' expectations.

Shares of Upstart Holdings, Inc. (NASDAQ:UPST - Get Free Report) were down 7.2% during mid-day trading on Wednesday . The company traded as low as $62.16 and last traded at $63.95. Approximately 5,182,201 shares were traded during trading, a decline of 17% from the average daily volume of 6,246,745 shares. The stock had previously closed at $68.92.

Analyst Ratings Changes

Several equities analysts have commented on the stock. JPMorgan Chase & Co. raised shares of Upstart from a "neutral" rating to an "overweight" rating and dropped their target price for the stock from $93.00 to $88.00 in a research report on Wednesday, August 20th. Morgan Stanley restated an "equal weight" rating on shares of Upstart in a research note on Wednesday, August 6th. The Goldman Sachs Group upgraded shares of Upstart to a "sell" rating and set a $71.00 price objective for the company in a research note on Monday, July 14th. Piper Sandler raised their price target on shares of Upstart from $75.00 to $90.00 and gave the company an "overweight" rating in a report on Wednesday, August 6th. Finally, Needham & Company LLC reissued 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. Six equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $78.54.

Upstart Stock Down 10.2%

The firm has a market capitalization of $5.95 billion, a PE ratio of -775.01 and a beta of 2.37. The stock's fifty day simple moving average is $73.00 and its 200 day simple moving average is $58.37.

Upstart (NASDAQ:UPST - Get Free Report) last issued its quarterly earnings data on Tuesday, August 5th. The company reported $0.36 earnings per share for the quarter, beating analysts' consensus estimates 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 firm 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 business's quarterly revenue was up 101.6% compared to the same quarter last year. Upstart has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. On average, analysts predict that Upstart Holdings, Inc. will post -0.03 EPS for the current year.

Insider Transactions at Upstart

In other news, Director Kerry Whorton Cooper sold 500 shares of the company's stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $69.21, for a total value of $34,605.00. Following the completion of the sale, the director owned 25,434 shares of the company's stock, valued at approximately $1,760,287.14. This represents a 1.93% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Dave Girouard sold 41,667 shares of the company's stock in a transaction that occurred on Friday, August 15th. The stock was sold at an average price of $63.27, for a total transaction of $2,636,271.09. Following the completion of the sale, the chief executive officer directly owned 52,614 shares of the company's stock, valued at $3,328,887.78. The trade was a 44.19% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 158,414 shares of company stock worth $10,506,147. Insiders own 16.67% of the company's stock.

Institutional Investors Weigh In On Upstart

Several hedge funds have recently modified their holdings of the business. Virtus Fund Advisers LLC purchased a new stake in Upstart during the fourth quarter valued at approximately $32,000. Ameritas Advisory Services LLC acquired a new stake in shares of Upstart in the second quarter worth $34,000. Steward Partners Investment Advisory LLC increased its stake in shares of Upstart by 72.1% in the second quarter. Steward Partners Investment Advisory LLC now owns 864 shares of the company's stock worth $56,000 after acquiring an additional 362 shares during the period. State of Wyoming acquired a new stake in shares of Upstart in the second quarter worth $61,000. Finally, Mackenzie Financial Corp acquired a new stake in shares of Upstart in the fourth quarter worth $62,000. 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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