Scott Darling, the Chief Legal Officer of Upstart (NASDAQ:UPST) Holdings, Inc. (NASDAQ:UPST), recently sold shares of the company's stock according to a filing with the Securities and Exchange Commission. The transactions, which took place on November 20, involved the sale of a total of 6,390 shares. The shares were sold at prices ranging from $69.596 to $70.4957, amounting to a total value of $446,284.
These sales were conducted to cover tax withholding obligations related to the vesting of restricted stock units (RSUs). Following these transactions, Darling now holds 150,781 shares of Upstart Holdings.
In other recent news, Upstart Holdings, a cloud-based artificial intelligence lending platform, has announced a private offering of $425 million in Convertible Senior Notes due 2030. The company has also reported strong third-quarter results, with a 43% sequential increase in lending volume and a significant rise in revenue. Upstart's expansion into the auto loan and home equity line of credit (HELOC) markets yielded promising results, with the HELOC business doubling and auto loan originations increasing by 46%.
Analysts at Mizuho (NYSE:MFG) have raised the price target for Upstart to $90 from the previous $48, maintaining an Outperform rating on the stock. This adjustment follows Upstart's positive performance in the third quarter and the company's increased fourth-quarter guidance. 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.
In addition, Upstart secured a strategic partnership with Blue Owl, which guarantees up to $2 billion in loan purchases over the next 18 months. These are among the recent developments that underscore Upstart's ongoing commitment to growth in the lending sector.
InvestingPro Insights
While Upstart Holdings' Chief Legal Officer Scott Darling has recently sold shares, it's important to consider the broader financial picture of the company. According to InvestingPro data, Upstart's market capitalization stands at $6.75 billion, reflecting significant investor interest despite the company's current profitability challenges.
InvestingPro Tips highlight that Upstart's stock has shown a strong return over the last year, with a remarkable 215.42% price total return. This performance aligns with the company's volatile trading nature, as another tip points out that the stock generally trades with high price volatility. These characteristics may explain the timing of insider transactions like Darling's recent sale.
Interestingly, while Upstart is not currently profitable, with a negative P/E ratio of -33.09 for the last twelve months as of Q3 2023, the company has seen revenue growth of 10.89% over the same period. This growth, coupled with a gross profit margin of 74.62%, suggests that Upstart's business model has potential, even as it navigates towards profitability.
For investors seeking a deeper understanding of Upstart's financial health and future prospects, InvestingPro offers 12 additional tips, providing a more comprehensive analysis of the company's position in the market.
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