Upstart (NASDAQ:UPST) Sees Strong Trading Volume After Better-Than-Expected Earnings

Upstart Holdings, Inc. (NASDAQ:UPST) shares saw strong trading volume on Wednesday following a better than expected earnings announcement. 5,553,377 shares were traded during trading, an increase of 35% from the previous session’s volume of 4,123,049 shares.The stock last traded at $33.5470 and had previously closed at $38.96.

The company reported $0.17 earnings per share 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 for the quarter, compared to analysts’ expectations of $288.54 million. During the same period last year, the firm posted $0.26 earnings per share. The business’s quarterly revenue was up 35.2% compared to the same quarter last year.

Analyst Upgrades and Downgrades

UPST has been the topic of a number of research analyst reports. BTIG Research reaffirmed a “neutral” rating on shares of Upstart in a research report on Wednesday, November 5th. Citizens Jmp reissued a “market underperform” rating and set a $20.00 target price on shares of Upstart in a research note on Friday. Weiss Ratings restated a “sell (d+)” rating on shares of Upstart in a report on Monday, December 29th. Truist Financial reduced their price target on shares of Upstart from $59.00 to $49.00 and set a “buy” rating for the company in a report on Wednesday. Finally, Piper Sandler lowered their price objective on shares of Upstart from $80.00 to $56.00 and set an “overweight” rating for the company in a research report on Wednesday, November 5th. Four equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat.com, Upstart currently has an average rating of “Hold” and an average price target of $51.27.

Insider Activity

In other news, insider Natalia Mirgorodskaya sold 762 shares of the business’s stock in a transaction on Tuesday, November 25th. The shares were sold at an average price of $38.91, for a total value of $29,649.42. Following the sale, the insider owned 26,398 shares of the company’s stock, valued at $1,027,146.18. The trade was a 2.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Kerry Whorton Cooper sold 1,500 shares of the stock in a transaction on Friday, December 12th. The stock was sold at an average price of $50.00, for a total transaction of $75,000.00. Following the transaction, the director owned 23,934 shares of the company’s stock, valued at $1,196,700. The trade was a 5.90% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 16,707 shares of company stock worth $633,080 over the last ninety days. Insiders own 16.67% of the company’s stock.

Institutional Trading of Upstart

A number of large investors have recently added to or reduced their stakes in the company. Clearstead Advisors LLC acquired a new position in shares of Upstart during the 3rd quarter worth about $25,000. Quarry LP grew its holdings in Upstart by 749.2% during the third quarter. Quarry LP now owns 501 shares of the company’s stock worth $25,000 after purchasing an additional 442 shares during the period. Bayforest Capital Ltd bought a new position in Upstart during the fourth quarter worth about $25,000. Northwestern Mutual Wealth Management Co. increased its position in Upstart by 132.2% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 771 shares of the company’s stock worth $39,000 after buying an additional 439 shares during the last quarter. Finally, Steward Partners Investment Advisory LLC raised its stake in Upstart by 72.1% in the second quarter. Steward Partners Investment Advisory LLC now owns 864 shares of the company’s stock valued at $56,000 after buying an additional 362 shares during the period. Institutional investors and hedge funds own 63.01% of the company’s stock.

Upstart Stock Up 1.6%

The stock has a market cap of $3.01 billion, a P/E ratio of 73.05, a price-to-earnings-growth ratio of 0.51 and a beta of 2.38. The firm has a 50 day simple moving average of $44.63 and a 200-day simple moving average of $52.24.

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.