Upstart (NASDAQ:UPST) Holdings, Inc. (NASDAQ:UPST) Chief Legal Officer, Scott Darling, has recently sold a portion of his company shares, according to the latest regulatory filing. On June 3, 2024, Darling sold 3,000 shares of Upstart's common stock at an average price of $25.44, totaling over $76,000.
The transactions were carried out in multiple trades with prices ranging from $25.415 to $25.57. Following the sale, Darling still holds 196,993 shares of Upstart Holdings, which includes certain restricted stock units (RSUs). These RSUs represent a contingent right to receive shares of common stock upon meeting the vesting schedule and conditions.
It is important to note that the sales were conducted under a pre-arranged 10b5-1 trading plan, which was adopted by Darling on February 29, 2024. Such plans allow company insiders to sell a predetermined number of shares at a predetermined time, providing a defense against claims of insider trading.
Upstart Holdings, headquartered in San Mateo, California, operates in the financial services sector, offering artificial intelligence lending platforms. The company's shares are traded on NASDAQ, and it continues to be a closely watched player in the fintech industry.
In other recent news, Upstart Holdings Inc . has been the subject of significant attention from analysts. Redburn-Atlantic recently upgraded its rating from Sell to Neutral, citing promising signs of growth and advancements in product innovation. The firm also highlighted Upstart's revenue guidance for the second half of 2024 as a sign of increased visibility into the company's operations.
Contrarily, Mizuho Securities adjusted its outlook on Upstart, reducing the price target due to the company's first-quarter performance and continued increase in delinquencies. However, the firm noted early signs of improvement, including a decrease in underwriting mistakes and a renewed engagement of capital with the platform.
In the first quarter of 2024, Upstart reported revenue from fees of $138 million and net revenue of $128 million. The company saw loan transactions totaling 119,000 and incurred operating expenses of $195 million. For the second quarter of 2024, Upstart anticipates revenues of approximately $125 million and expects to return to positive EBITDA by year-end.
These are recent developments that indicate a dynamic financial landscape for Upstart, with different perspectives from Redburn-Atlantic and Mizuho Securities. As the company navigates this environment, it continues to focus on strategic initiatives and the integration of artificial intelligence into lending practices.
InvestingPro Insights
As Upstart Holdings, Inc. (NASDAQ:UPST) navigates the dynamic fintech market, recent transactions by company insiders have sparked interest among investors. In light of these developments, insights from InvestingPro reveal critical aspects of the company's financial health and market performance. Upstart's market capitalization currently stands at approximately $2.33 billion, reflecting investor valuation of the company.
An analysis of Upstart's price-to-earnings (P/E) ratio indicates that the company is not expected to be profitable in the near term, with a P/E ratio of -12.85 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at -13.24. This aligns with one of the InvestingPro Tips suggesting that analysts do not anticipate Upstart to be profitable this year. Additionally, the company's recent revenue growth for Q1 2024 at 25.85% quarterly suggests an upward trend, although the last twelve months have seen an overall revenue decline of 11.55%.
Despite the challenges, Upstart has demonstrated a significant return over the last week, with a 13.34% increase in its stock price. This volatility is underscored by another InvestingPro Tip highlighting the stock's price movements. Moreover, Upstart's liquid assets surpass short-term obligations, indicating the company has a solid liquidity position to meet its immediate financial responsibilities.
For investors and analysts looking to dive deeper into Upstart's financials and market performance, InvestingPro offers a comprehensive suite of additional tips. Currently, there are 6 more InvestingPro Tips available, which can provide further guidance on the company's outlook. Interested readers can access these tips at: https://www.investing.com/pro/UPST. Additionally, users can take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enriching their investment strategy with expert insights.
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