Upstart (NASDAQ:UPST) Shares Down 5.9% – Should You Sell?

Upstart Holdings, Inc. (NASDAQ:UPST)’s stock price was down 5.9% during trading on Tuesday. The company traded as low as $20.54 and last traded at $20.9330. 1,017,537 shares were traded during mid-day trading, a decline of 78% from the average daily volume of 4,678,499 shares. The stock had previously closed at $22.25.

Analyst Ratings Changes

A number of analysts have recently weighed in on the company. Loop Capital began coverage on Upstart in a research report on Tuesday, September 8th. They set a “hold” rating and a $34.00 price target on the stock. BTIG Research dropped their price objective on Upstart from $43.00 to $40.00 and set a “buy” rating on the stock in a research note on Tuesday, November 3rd. Bank of America restated a “neutral” rating and set a $28.00 target price on shares of Upstart in a report on Wednesday, November 4th. Piper Sandler increased their price objective on Upstart from $46.00 to $51.00 and gave the company an “overweight” rating in a research report on Wednesday, August 5th. Finally, Stephens initiated coverage on Upstart in a research report on Wednesday, November 4th. They set an “equal weight” rating and a $24.00 price objective for the company. Seven investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, Upstart has an average rating of “Hold” and a consensus price target of $32.40.

Upstart Trading Down 11.2%

The company has a fifty day simple moving average of $24.36 and a 200-day simple moving average of $29.28. The stock has a market cap of $1.95 billion, a price-to-earnings ratio of 33.57, a P/E/G ratio of 1.19 and a beta of 2.48.

Upstart (NASDAQ:UPST) last posted its quarterly earnings data on Tuesday, November 3rd. The company reported $0.33 EPS for the quarter, beating analysts’ consensus estimates of $0.20 by $0.13. The company had revenue of $370.52 million during the quarter, compared to analyst estimates of $362.68 million. Upstart had a net margin of 4.86% and a return on equity of 9.67%. The business’s quarterly revenue was up 33.7% on a year-over-year basis. During the same period in the prior year, the firm earned $0.23 earnings per share. As a group, analysts anticipate that Upstart Holdings, Inc. will post 0.72 earnings per share for the current year.

Insider Activity

In related news, insider Sanjay Datta sold 116,000 shares of the firm’s stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $27.29, for a total value of $3,165,640.00. Following the completion of the transaction, the insider owned 476,578 shares of the company’s stock, valued at approximately $13,005,813.62. This trade represents a 19.58% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Andrea Blankmeyer sold 3,000 shares of Upstart stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $29.33, for a total transaction of $87,990.00. Following the transaction, the chief financial officer owned 152,208 shares in the company, valued at approximately $4,464,260.64. The trade was a 1.93% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 148,652 shares of company stock worth $4,133,720 in the last quarter. Insiders own 17.29% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Parallel Advisors LLC boosted its position in Upstart by 76.7% during the 3rd quarter. Parallel Advisors LLC now owns 1,656 shares of the company’s stock worth $38,000 after acquiring an additional 719 shares during the period. Asset Management One Co. Ltd. increased its holdings in shares of Upstart by 33.2% in the 3rd quarter. Asset Management One Co. Ltd. now owns 1,790 shares of the company’s stock valued at $41,000 after purchasing an additional 446 shares during the period. Geneos Wealth Management Inc. increased its holdings in shares of Upstart by 274.4% in the 1st quarter. Geneos Wealth Management Inc. now owns 1,842 shares of the company’s stock valued at $47,000 after purchasing an additional 1,350 shares during the period. Hollencrest Capital Management purchased a new stake in shares of Upstart in the first quarter worth approximately $51,000. Finally, Sterling Capital Management LLC lifted its position in shares of Upstart by 838.2% in the third quarter. Sterling Capital Management LLC now owns 2,824 shares of the company’s stock worth $65,000 after purchasing an additional 2,523 shares in the last quarter. 63.01% of the stock is owned by institutional investors and hedge funds.

About Upstart

Upstart Holdings, Inc. operates an artificial intelligence–based lending marketplace that connects consumers seeking loans with banks and credit unions. Its platform uses machine-learning models and borrower data to help lending partners assess credit risk and make lending decisions. The company’s offerings include personal loans and technology for auto lending, including auto retail and refinancing. Upstart was founded in 2012 by Dave Girouard, Paul Gu and Anna Counselman. Girouard serves as the company’s chief executive officer.