Upstart (NASDAQ:UPST) Stock Price Down 7.8% – What’s Next?

Upstart Holdings, Inc. (NASDAQ:UPST)’s stock price fell 7.8% during trading on Wednesday . The stock traded as low as $29.80 and last traded at $30.2970. 1,447,314 shares traded hands during mid-day trading, a decline of 71% from the average session volume of 4,912,166 shares. The stock had previously closed at $32.86.

Upstart News Summary

Here are the key news stories impacting Upstart this week:

• Positive Sentiment: Upstart announced a large forward‑flow commitment: funds managed by affiliates of Fortress Investment Group agreed to buy up to $1.25 billion of consumer loans originated through Upstart’s platform over 15 months — this materially increases financing capacity and implied originations volume. Article Title
• Positive Sentiment: Justice Federal Credit Union selected Upstart to expand personal lending, an example of continued wins in distribution / marketplace adoption that can drive revenue growth and recurring loan volumes. Article Title
• Neutral Sentiment: Bullish commentary and analysis (Seeking Alpha and other outlets) highlight a record product launch and bullish theses on growth and model improvements; these may support sentiment but are opinion pieces rather than company filings. Article Title
• Neutral Sentiment: Market writeups (InsiderMonkey/Yahoo/MSN) recap bulls’ theses and recent moves; useful for context but unlikely to move the stock as much as legal or funding headlines. Article Title
• Negative Sentiment: Multiple law firms and a formal class action (Pomerantz) announced suits or solicitations alleging securities‑law violations for the May 14–Nov 4, 2025 period; firms are actively recruiting lead plaintiffs and reminding investors of a June 8, 2026 deadline — this raises litigation risk, potential settlement exposure, and near‑term headline volatility. Article Title Also see solicitations from Rosen, Bronstein, Faruqi, Bernstein Liebhard, Levi & Korsinsky and others.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on UPST. Weiss Ratings reissued a “sell (d+)” rating on shares of Upstart in a report on Friday, March 27th. Mizuho dropped their target price on Upstart from $66.00 to $51.00 and set an “outperform” rating on the stock in a research report on Thursday, March 26th. BTIG Research reiterated a “buy” rating and issued a $43.00 price target on shares of Upstart in a report on Thursday, April 9th. Truist Financial reduced their price target on Upstart from $59.00 to $49.00 and set a “buy” rating for the company in a research report on Wednesday, February 11th. Finally, Compass Point upgraded Upstart from a “sell” rating to a “neutral” rating and upped their price objective for the stock from $20.00 to $30.00 in a research note on Tuesday, February 17th. Six equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $48.00.

Upstart Price Performance

The stock has a market cap of $3.02 billion, a price-to-earnings ratio of 75.19, a P/E/G ratio of 0.86 and a beta of 2.16. The company’s fifty day moving average price is $28.59 and its 200-day moving average price is $38.60.

Upstart (NASDAQ:UPST) last released its earnings results on Tuesday, February 10th. The company reported $0.17 EPS for the quarter, topping analysts’ consensus estimates of $0.15 by $0.02. Upstart had a net margin of 5.13% and a return on equity of 6.30%. The company had revenue of $296.09 million during the quarter, compared to analysts’ expectations of $288.54 million. During the same period last year, the business earned $0.26 EPS. Upstart’s revenue for the quarter was up 35.2% on a year-over-year basis. On average, sell-side analysts forecast that Upstart Holdings, Inc. will post 0.94 earnings per share for the current fiscal year.

Upstart announced that its board has approved a stock buyback program on Thursday, February 19th that authorizes the company to buyback $100.00 million in shares. This buyback authorization authorizes the company to purchase up to 3.2% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s management believes its stock is undervalued.

Insider Activity

In related news, CFO Sanjay Datta sold 7,982 shares of the company’s stock in a transaction on Friday, February 20th. The stock was sold at an average price of $29.86, for a total value of $238,342.52. Following the transaction, the chief financial officer directly owned 276,688 shares of the company’s stock, valued at $8,261,903.68. This represents a 2.80% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Over the last 90 days, insiders sold 9,481 shares of company stock valued at $282,201. 16.67% of the stock is owned by corporate insiders.

Institutional Trading of Upstart

Large investors have recently added to or reduced their stakes in the company. Cresset Asset Management LLC boosted its holdings in Upstart by 3.3% in the second quarter. Cresset Asset Management LLC now owns 5,241 shares of the company’s stock valued at $339,000 after purchasing an additional 169 shares during the last quarter. Wealth Enhancement Advisory Services LLC raised its stake in shares of Upstart by 3.0% during the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 7,448 shares of the company’s stock valued at $386,000 after buying an additional 218 shares during the last quarter. Daiwa Securities Group Inc. lifted its holdings in shares of Upstart by 29.1% in the 2nd quarter. Daiwa Securities Group Inc. now owns 1,068 shares of the company’s stock valued at $69,000 after buying an additional 241 shares during the period. Advisory Services Network LLC boosted its stake in shares of Upstart by 5.3% in the second quarter. Advisory Services Network LLC now owns 5,399 shares of the company’s stock worth $349,000 after buying an additional 272 shares during the last quarter. Finally, California State Teachers Retirement System boosted its stake in shares of Upstart by 0.4% in the second quarter. California State Teachers Retirement System now owns 76,368 shares of the company’s stock worth $4,939,000 after buying an additional 332 shares during the last quarter. Hedge funds and other institutional investors own 63.01% of the company’s stock.

About Upstart

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.