Upstart (NASDAQ:UPST) Posts Earnings Results, Misses Expectations By $0.30 EPS

Upstart (NASDAQ:UPST) issued its quarterly earnings data on Tuesday. The company reported $0.17 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.47 by ($0.30), FiscalAI reports. The business had revenue of $296.09 million for the quarter, compared to analyst estimates of $288.54 million. Upstart had a return on equity of 3.68% and a net margin of 3.33%.

Upstart Stock Up 0.3%

Shares of Upstart stock traded up $0.11 on Tuesday, hitting $38.96. 9,807,166 shares of the company traded hands, compared to its average volume of 4,076,884. Upstart has a 12-month low of $31.40 and a 12-month high of $96.43. The company has a market cap of $3.79 billion, a PE ratio of 177.10 and a beta of 2.38. The company has a 50-day moving average price of $45.61 and a 200 day moving average price of $53.21.

Insider Activity at Upstart

In other news, Director Kerry Whorton Cooper sold 1,500 shares of Upstart stock in a transaction dated Friday, December 12th. The stock was sold at an average price of $50.00, for a total transaction of $75,000.00. Following the completion of the sale, the director directly owned 23,934 shares in the company, valued at $1,196,700. The trade was a 5.90% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Natalia Mirgorodskaya sold 762 shares of the stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $38.91, for a total value of $29,649.42. Following the completion of the transaction, the insider owned 26,398 shares in the company, valued at $1,027,146.18. This represents a 2.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 16,707 shares of company stock valued at $633,080. Insiders own 16.67% of the company’s stock.

Hedge Funds Weigh In On Upstart

Institutional investors have recently bought and sold shares of the stock. Quarry LP increased its holdings in shares of Upstart by 749.2% during the 3rd quarter. Quarry LP now owns 501 shares of the company’s stock worth $25,000 after purchasing an additional 442 shares during the period. Northwestern Mutual Wealth Management Co. boosted its stake in Upstart by 132.2% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 771 shares of the company’s stock valued at $39,000 after buying an additional 439 shares in the last quarter. State of Wyoming bought a new stake in shares of Upstart in the 2nd quarter worth about $61,000. Daiwa Securities Group Inc. increased its position in shares of Upstart by 29.1% during the 2nd quarter. Daiwa Securities Group Inc. now owns 1,068 shares of the company’s stock worth $69,000 after purchasing an additional 241 shares in the last quarter. Finally, Wexford Capital LP bought a new position in Upstart during the 3rd quarter valued at about $77,000. 63.01% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on UPST. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Upstart in a report on Monday, December 29th. Citigroup dropped their price objective on Upstart from $100.00 to $80.00 and set a “buy” rating on the stock in a research note on Wednesday, November 5th. Morgan Stanley set a $45.00 target price on shares of Upstart in a research note on Wednesday, November 5th. Truist Financial began coverage on Upstart in a research report on Tuesday, January 6th. They issued a “buy” rating and a $59.00 price target for the company. Finally, Stephens cut their price objective on Upstart from $55.00 to $40.00 and set an “equal weight” rating on the stock in a report on Wednesday, November 5th. Six research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $60.36.

Upstart Company Profile

Upstart Holdings, Inc operates a cloud-based lending marketplace that leverages artificial intelligence and machine learning to assess borrower creditworthiness. The company partners with banks and credit unions, providing its proprietary AI models and underwriting platform to facilitate consumer credit products. By focusing on non‐traditional data points—such as education, employment history and other real‐time indicators—Upstart seeks to improve approval rates and lower loss rates compared with conventional credit scoring methods.

Upstart’s core offering centers on unsecured personal loans, which borrowers can use for purposes such as debt consolidation, home improvements or major purchases.