SAN MATEO, CA—Paul Gu, the Chief Technology Officer of Upstart (NASDAQ:UPST) Holdings, Inc. (NASDAQ:UPST), has recently sold a significant portion of his holdings in the company. According to a recent SEC filing, Gu sold shares worth approximately $5.45 million over the course of three days. The sales come as Upstart's stock has shown remarkable momentum, with a 173% surge over the past six months and currently trading near $77, close to its 52-week high of $86.07.
The sales were executed as part of a pre-arranged trading plan under Rule 10b5-1. On December 4th, Gu sold 28,155 shares at an average price of $75.0604. The following day, he sold an additional 4,019 shares, with the price averaging $75.0001. On December 6th, Gu sold 35,876 shares at an average price of $75.3692 and another 4,350 shares at an average price of $76.1776.
These transactions were part of a broader strategy that also included exercising stock options. Gu acquired a total of 72,400 shares through option exercises, priced at $1.17 per share, before selling a portion of them.
Following these transactions, Gu continues to hold a substantial number of shares in Upstart Holdings. As of the latest filing, he owns 863,065 shares directly in the $7 billion market cap company, which has demonstrated high price volatility and trades at a significant premium with a Price/Book ratio of 11.8x.
In other recent news, Upstart Holdings has been the subject of several analyst updates. Redburn-Atlantic upgraded Upstart's stock rating from Neutral to Buy, setting a new price target of $95.00. The firm cited Upstart's strong performance and advanced AI innovations as key factors in the company's success. JPMorgan, however, downgraded the stock from Neutral to Underweight, despite raising the price target to $57 from $45, suggesting a cautious stance on the stock's current valuation relative to its earnings potential.
Meanwhile, BTIG upgraded Upstart's stock rating from Sell to Neutral, acknowledging a significant increase in the company's stock value and the positive performance of Upstart's loan volumes. On the other hand, Mizuho (NYSE:MFG) raised the price target for Upstart to $90 from the previous $48, maintaining an Outperform rating on the stock, following Upstart's positive performance in the third quarter.
Upstart has also recently announced plans for a private offering of $425 million in Convertible Senior Notes due 2030, aimed at qualified institutional buyers. The proceeds from this offering will be used for general corporate purposes, potentially including repaying or retiring existing debt. The company also secured a strategic partnership with Blue Owl, guaranteeing up to $2 billion in loan purchases over the next 18 months. These are among the most recent developments for Upstart Holdings.
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