SAN MATEO, CA—Sanjay Datta, the Chief Financial Officer of Upstart (NASDAQ:UPST) Holdings, Inc. (NASDAQ:UPST), recently sold 1,500 shares of the company's common stock. The transaction, which took place on October 28, 2024, was executed at a price of $51.70 per share, amounting to a total value of $77,550.
This sale was conducted under a Rule 10b5-1 trading plan that Datta adopted earlier this year on February 26, 2024. Following this transaction, Datta holds 334,093 shares of Upstart Holdings, including certain restricted stock units that are subject to vesting conditions.
Upstart Holdings, a company specializing in finance services, is based in San Mateo, California. The company's stock has been closely watched by investors, and transactions by its executives are often scrutinized for insights into the company's financial health and future prospects.
In other recent news, Upstart Holdings has made significant strides in its operations. The company has launched its T-Prime lending program, targeting the "super prime" borrower segment in the United States. This initiative is already supported by fourteen lenders, including Alliant Credit Union. The AI lending marketplace has also secured a programmatic purchase commitment of up to $2 billion from Blue Owl Capital Inc., a move that aims to enhance the efficiency of consumer lending processes.
Upstart has also announced a $300 million offering of Convertible Senior Notes due in 2029, targeted at qualified institutional buyers. In the realm of analysts' ratings, Mizuho Securities reaffirmed an Outperform rating on Upstart's shares, citing potential growth drivers such as the ramp-up of new products like Home Equity Lines of Credit (HELOC) and Auto loans. BofA Securities, on the other hand, maintained an Underperform rating but increased its price target for Upstart.
The company's loan volume and revenue growth are accelerating, with total revenues of approximately $150 million anticipated for Q3 2024 and positive adjusted EBITDA projected in Q4 2024. Other notable developments include a strategic partnership with AMOCO Federal Credit Union to offer AI-driven loans. These recent developments underscore Upstart's ongoing efforts to refine its AI-driven lending platform and its strategic move towards a more sustainable and diversified funding structure.
InvestingPro Insights
The recent sale of Upstart Holdings (NASDAQ:UPST) shares by CFO Sanjay Datta comes amid a period of significant stock price volatility for the company. According to InvestingPro data, Upstart has seen a remarkable 127.84% price total return over the past six months, and a 116.21% return over the last year, indicating strong momentum despite the company's financial challenges.
InvestingPro Tips highlight that Upstart's stock generally trades with high price volatility, which aligns with the substantial returns observed recently. This volatility could explain why executives might choose to sell shares under pre-arranged trading plans, as it allows for more predictable transactions in a fluctuating market.
Another relevant InvestingPro Tip notes that analysts do not anticipate the company will be profitable this year. This insight is supported by the company's financial metrics, including a negative P/E ratio of -22.15 and an operating income margin of -29.28% for the last twelve months as of Q2 2023. These figures suggest that Upstart is currently prioritizing growth over profitability, which may influence investor sentiment and executive decision-making regarding stock holdings.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips that could provide further context to Upstart's financial situation and market position.
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