Sanjay Datta, the Chief Financial Officer of Upstart (NASDAQ:UPST) Holdings, Inc. (NASDAQ:UPST), has recently sold 1,500 shares of the company's common stock. The transaction, dated October 7, 2024, was executed at a price of $41.29 per share, resulting in a total sale value of $61,935.
This sale was conducted under a Rule 10b5-1 trading plan, which Datta had previously adopted on February 26, 2024. Rule 10b5-1 plans allow company insiders to establish pre-arranged plans to buy or sell company stock when they are not in possession of material non-public information. These plans provide a defense against allegations of insider trading by setting up a schedule for transactions in advance.
Following the sale, Datta retains ownership of 338,593 shares in Upstart Holdings, a portion of which includes restricted stock units (RSUs). RSUs represent the right to receive shares of common stock upon vesting and meeting certain conditions.
The transaction was disclosed in a Form 4 filing with the Securities and Exchange Commission, with a signature by Christopher Ing, acting by power of attorney.
Investors and market watchers often monitor insider transactions as they can provide insights into executives' perspectives on the company's future performance. Upstart Holdings, based in San Mateo, California, operates within the financial services sector and has been a notable player in the industry.
In other recent news, Upstart Holdings Inc . has seen several significant developments. Mizuho Securities has maintained an Outperform rating on Upstart, with a price target of $48, due to the company's growth prospects. This comes after meetings with the company's CFO and SVP of Finance, highlighting potential growth drivers. Upstart's conservative guidance for the second half of the year and potential for lower consumer consumption to affect delinquency rates were noted.
The company has also announced a $300 million offering of Convertible Senior Notes due in 2029, aimed at qualified institutional buyers. The proceeds are planned for financing capped call transactions and repurchasing part of its outstanding 0.25% Convertible Senior Notes due in 2026. BofA Securities raised its price target for Upstart from $23 to $27, maintaining an Underperform rating, following the company's Q2 results which exceeded expectations.
Upstart's partnership with AMOCO Federal Credit Union to offer AI-driven loans was another key development. Despite a 9% year-over-year decline in fee revenue to $131 million, Upstart saw a 31% increase in loan transaction volume. The company projects positive adjusted EBITDA in Q4 2024 and anticipates total revenues of approximately $150 million for Q3 2024.
InvestingPro Insights
To provide additional context to Sanjay Datta's recent stock sale, let's examine some key metrics and insights from InvestingPro for Upstart Holdings (NASDAQ:UPST).
As of the latest data, Upstart's market capitalization stands at $3.85 billion. The company's stock has shown significant momentum, with InvestingPro data indicating a strong 21.88% return over the past month and an impressive 76.94% return over the last three months. This recent performance aligns with one of the InvestingPro Tips, which notes that Upstart has seen a "significant return over the last week."
Despite the positive stock performance, it's important to note that Upstart is currently not profitable. The company's P/E ratio stands at -18.24, reflecting negative earnings. This is consistent with another InvestingPro Tip, which states that "analysts do not anticipate the company will be profitable this year."
Interestingly, Upstart's price-to-book ratio is 6.48, which supports the InvestingPro Tip indicating that the stock is "trading at a high Price / Book multiple." This high multiple suggests that investors are placing a premium on the company's assets, possibly due to growth expectations or the perceived value of its technology and market position.
For investors considering Upstart, it's worth noting that InvestingPro offers 12 additional tips that could provide further insights into the company's financial health and market position. These tips, along with real-time metrics, can be valuable for understanding the full picture behind insider transactions like Datta's recent sale.
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