SAN MATEO, CA – Paul Gu, the Chief Technology Officer of Upstart (NASDAQ:UPST) Holdings, Inc. (NASDAQ:UPST), a leading artificial intelligence lending platform, has recently sold shares in the company valued at over $387,000. The transactions, which took place on May 20, 2024, involved the sale of 15,131 shares at prices ranging from $25.26 to $26.21, averaging $25.6082 per share.
This sale came just days after Gu acquired 16,164 shares of Upstart's common stock at a price of $8.88 per share. Following these transactions, Gu's direct ownership in the company stands at 894,629 shares. It is noted that some of the shares sold were to cover tax withholding obligations associated with the vesting of restricted stock units (RSUs). Each RSU represents a contingent right to receive one share of common stock, subject to vesting schedules and conditions.
Additionally, on the same date as the acquisition, Gu exercised options to buy the same number of shares, 16,164, at $8.88 each, which are fully vested and exercisable. After the exercise, he holds a total of 183,836 derivative securities in the form of employee stock options.
The recent sale by Upstart’s CTO is part of his transaction activities in the company’s stock and reflects a substantial transaction value. Upstart Holdings, based in San Mateo, California, continues to be at the forefront of the finance services industry, leveraging advanced AI to improve access to affordable credit while reducing the risks and costs of lending for its bank partners.
Investors and market watchers often keep a close eye on insider transactions as they may provide insights into the executive's view of the company's stock value and financial health.
InvestingPro Insights
In light of the recent insider transactions at Upstart Holdings, Inc. (NASDAQ:UPST), it is noteworthy to consider the company's current financial health and market performance as reflected by real-time data from InvestingPro. As of the last twelve months leading up to Q1 2024, Upstart's market capitalization stands at approximately $2.17 billion. The company's Price to Earnings (P/E) ratio is currently negative at -12.06, indicating that it has not been profitable over this period. This aligns with an InvestingPro Tip highlighting that analysts do not anticipate the company to be profitable this year. Moreover, the P/E ratio has slightly decreased when adjusted for the same period to -12.8.
Despite the lack of profitability, Upstart has demonstrated strong liquidity, with liquid assets surpassing short-term obligations. This is a positive sign for the company's financial stability and is further supported by a Gross Profit Margin of 74.13%, suggesting that Upstart is effective at controlling the cost of goods sold and has a relatively high profit rate on its products and services.
InvestingPro Tips also indicate that the stock has experienced significant volatility, with a notable decline over the last week, as the 1 Week Price Total Return shows a -13.61% movement. However, this is contrasted by a strong return over the last month, with a 12.94% increase. This volatility is something that potential investors should keep in mind, especially considering the absence of dividends, as Upstart does not provide dividend payouts to its shareholders.
For those looking to delve deeper into Upstart's financials and stock performance, InvestingPro offers additional insights and metrics. There are more InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/UPST. To get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, be sure to use the coupon code PRONEWS24.
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