Upstart (NASDAQ:UPST) Shares Down 5.9% – What’s Next?

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

Wall Street Analysts Forecast Growth

Several research firms have recently commented on UPST. B. Riley Financial reiterated a “buy” rating and issued a $42.00 price objective (down from $54.00) on shares of Upstart in a report on Wednesday, November 4th. Citigroup dropped their target price on Upstart from $61.00 to $46.00 and set a “buy” rating for the company in a report on Wednesday, November 4th. Citizens Jmp reduced their price target on Upstart from $20.00 to $18.00 and set a “market underperform” rating on the stock in a research report on Thursday, October 15th. Stephens started coverage on Upstart in a research note on Wednesday, November 4th. They issued an “equal weight” rating and a $24.00 price target on the stock. Finally, Wall Street Zen raised Upstart from a “sell” rating to a “hold” rating in a research note on Saturday, August 8th. Seven research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $32.40.

Upstart Trading Up 0.7%

The company has a market cap of $2.03 billion, a PE ratio of 34.85, a P/E/G ratio of 1.98 and a beta of 2.48. The business has a fifty day moving average of $24.06 and a 200-day moving average of $29.03.

Upstart (NASDAQ:UPST) last released its quarterly earnings results on Tuesday, November 3rd. The company reported $0.33 EPS for the quarter, beating analysts’ consensus estimates of $0.20 by $0.13. The business had revenue of $370.52 million during the quarter, compared to analyst estimates of $362.68 million. Upstart had a return on equity of 9.67% and a net margin of 4.86%. Upstart’s quarterly revenue was up 33.7% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.23 EPS. As a group, research analysts predict that Upstart Holdings, Inc. will post 0.38 EPS for the current year.

Insiders Place Their Bets

In related news, insider Natalia Mirgorodskaya sold 913 shares of the company’s stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $30.03, for a total transaction of $27,417.39. Following the completion of the transaction, the insider owned 35,875 shares in the company, valued at $1,077,326.25. This represents a 2.48% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Paul Gu purchased 50,000 shares of the company’s stock in a transaction that occurred on Thursday, September 10th. The stock was acquired at an average cost of $25.55 per share, with a total value of $1,277,500.00. Following the purchase, the chief executive officer directly owned 130,000 shares of the company’s stock, valued at $3,321,500. This trade represents a 62.50% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have sold 148,652 shares of company stock worth $4,133,720 in the last ninety days. Insiders own 17.29% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Asset Management One Co. Ltd. lifted its position 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 worth $41,000 after purchasing an additional 446 shares during the period. Versant Capital Management Inc raised its stake in Upstart by 26.7% in the second quarter. Versant Capital Management Inc now owns 2,905 shares of the company’s stock worth $103,000 after buying an additional 612 shares in the last quarter. State of Wyoming raised its stake in Upstart by 10.8% in the first quarter. State of Wyoming now owns 6,901 shares of the company’s stock worth $177,000 after buying an additional 674 shares in the last quarter. Parallel Advisors LLC lifted its holdings in Upstart by 76.7% in the third quarter. Parallel Advisors LLC now owns 1,656 shares of the company’s stock worth $38,000 after buying an additional 719 shares during the period. Finally, Farther Finance Advisors LLC lifted its holdings in Upstart by 25.7% in the third quarter. Farther Finance Advisors LLC now owns 4,307 shares of the company’s stock worth $99,000 after buying an additional 881 shares during the period. 63.01% of the stock is owned by hedge funds and other institutional investors.

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.