Upstart (NASDAQ:UPST) Sets New 12-Month Low – Here’s Why

Upstart Holdings, Inc. (NASDAQ:UPST) shares hit a new 52-week low on Thursday. The company traded as low as $22.67 and last traded at $22.6470, with a volume of 768440 shares traded. The stock had previously closed at $22.99.

Wall Street Analysts Forecast Growth

UPST has been the subject of several research reports. Needham & Company LLC lifted their price objective on Upstart from $40.00 to $42.00 and gave the stock a “buy” rating in a research report on Wednesday, August 5th. Piper Sandler increased their target price on Upstart from $46.00 to $51.00 and gave the company an “overweight” rating in a report on Wednesday, August 5th. Citigroup dropped their price target on Upstart from $80.00 to $61.00 and set a “buy” rating for the company in a research report on Wednesday, July 22nd. BTIG Research reissued a “buy” rating and issued a $43.00 price target on shares of Upstart in a report on Tuesday, September 22nd. Finally, Weiss Ratings downgraded Upstart from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Monday. Eight analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Upstart currently has an average rating of “Hold” and a consensus target price of $43.75.

Upstart Price Performance

The stock has a market cap of $2.24 billion, a price-to-earnings ratio of 47.02, a price-to-earnings-growth ratio of 0.82 and a beta of 2.16. The stock’s 50-day moving average is $27.67 and its 200-day moving average is $29.36.

Upstart (NASDAQ:UPST) last issued its quarterly earnings results on Tuesday, August 4th. The company reported $0.16 earnings per share for the quarter, missing the consensus estimate of $0.18 by ($0.02). Upstart had a net margin of 4.84% and a return on equity of 7.13%. The business had revenue of $364.71 million during the quarter, compared to analyst estimates of $354.74 million. During the same quarter last year, the firm posted $0.36 earnings per share. The company’s revenue was up 41.9% on a year-over-year basis. Analysts predict that Upstart Holdings, Inc. will post 0.72 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Sanjay Datta sold 116,000 shares of the company’s stock in a transaction on Tuesday, September 8th. The stock was 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 directly owned 476,578 shares in the company, valued at approximately $13,005,813.62. This represents a 19.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Paul Gu bought 50,000 shares of Upstart stock in a transaction that occurred on Thursday, September 10th. The shares were acquired at an average price of $25.55 per share, for a total transaction of $1,277,500.00. Following the completion of the transaction, 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 position. The SEC filing for this purchase provides additional information. Insiders sold 148,652 shares of company stock worth $4,133,720 in the last three months. Company insiders own 17.29% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of UPST. Greenwich Wealth Management LLC acquired a new stake in shares of Upstart in the second quarter worth approximately $322,000. Sequoia Financial Advisors LLC acquired a new position in Upstart during the second quarter worth approximately $254,000. Gemmer Asset Management LLC increased its position in Upstart by 17.0% during the second quarter. Gemmer Asset Management LLC now owns 29,707 shares of the company’s stock worth $1,053,000 after purchasing an additional 4,314 shares during the last quarter. Integrated Wealth Concepts LLC acquired a new position in Upstart during the second quarter worth approximately $248,000. Finally, Corient Private Wealth LP purchased a new position in Upstart during the second quarter worth approximately $2,074,000. 63.01% of the stock is currently owned by hedge funds and other institutional investors.

About Upstart

Upstart Holdings, Inc (NASDAQ: UPST) operates an artificial intelligence-powered lending platform that connects consumers seeking credit with banks and credit unions. Its technology is designed to evaluate a broader range of borrower information than traditional credit-scoring methods, with the goal of helping lending partners assess risk and automate portions of the application and underwriting process.

The company’s platform supports lending products including personal loans, automotive loans and refinancing, and home equity lines of credit.