Dave Girouard, the Chief Executive Officer of Upstart (NASDAQ:UPST) Holdings, Inc. (NASDAQ:UPST), recently sold shares in the company valued at approximately $305,248. The transactions, which took place on November 20, involved selling a total of 4,374 shares of common stock. The shares were sold at prices ranging from $69.5675 to $70.4286.
These sales were conducted to cover tax withholding obligations related to the vesting of restricted stock units (RSUs). Following these transactions, Girouard holds 57,138 shares directly. Additionally, he retains indirect ownership of shares through various trusts, as detailed in the company's SEC filing.
In other recent news, Upstart Holdings has announced a private offering of $425 million in Convertible Senior Notes due 2030. The company intends to use the net proceeds from the offering for corporate purposes, possibly including repaying or retiring existing debt. Upstart reported a robust third quarter with a 43% sequential increase in lending volume and a significant rise in revenue. The company's expansion into auto loan and home equity line of credit (HELOC) markets yielded promising results, with auto loan originations increasing by 46% and the HELOC business doubling. Despite a GAAP net loss of $7 million, Upstart projects Q4 revenues of approximately $180 million and an adjusted EBITDA of $5 million. Analysts at Mizuho (NYSE:MFG) have raised the price target for Upstart to $90, maintaining an Outperform rating on the stock, while BTIG upgraded Upstart's stock rating from Sell to Neutral. Upstart also secured a strategic partnership with Blue Owl, guaranteeing up to $2 billion in loan purchases over the next 18 months. These are the recent developments in the company's operations.
InvestingPro Insights
As Upstart Holdings' CEO Dave Girouard sells shares to cover tax obligations, investors might be curious about the company's current financial standing and market performance. According to InvestingPro data, Upstart's market capitalization stands at $6.75 billion, reflecting significant investor interest despite recent insider sales.
The company's stock has shown remarkable performance, with a 215.42% price total return over the past year. This aligns with an InvestingPro Tip indicating that Upstart has delivered a high return over the last year. Additionally, the stock has demonstrated strong momentum, with a 42.53% return in the past month alone.
However, it's worth noting that Upstart is currently not profitable, with a negative operating income of $168.54 million in the last twelve months. This is consistent with another InvestingPro Tip suggesting that analysts do not anticipate the company will be profitable this year.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Upstart Holdings, providing a deeper understanding of the company's financial health and market position. These insights could be particularly valuable given the stock's high volatility and significant price movements, as highlighted by InvestingPro Tips.
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