SAN MATEO, CA—Scott Darling, the Chief Legal Officer of Upstart (NASDAQ:UPST) Holdings, Inc. (NASDAQ:UPST), recently sold shares of the company, according to a filing with the Securities and Exchange Commission. The transactions, executed on November 25, involved the sale of 3,000 shares of Upstart's common stock.
The shares were sold at prices ranging from $75.4677 to $77.265, generating a total value of approximately $228,513. Following these sales, Darling holds 147,781 shares of the company directly. These transactions were conducted under a pre-established 10b5-1 trading plan, which Darling adopted earlier this year on February 26.
Upstart Holdings is a financial technology company that uses artificial intelligence to assess credit risk. The company is headquartered in San Mateo, California.
In other recent news, Upstart Holdings, Inc. has announced a private offering of $425 million in Convertible Senior Notes due 2030. They also plan to give initial purchasers an option to buy an additional $75 million of the notes within a 13-day period. This follows a strong third quarter for the company, which saw a 43% sequential increase in lending volume and a significant rise in revenue. Analysts at Mizuho (NYSE:MFG) have accordingly raised their price target for Upstart, maintaining an Outperform rating. BTIG also upgraded Upstart's stock rating from Sell to Neutral. Additionally, Upstart has secured a strategic partnership with Blue Owl, guaranteeing up to $2 billion in loan purchases over the next 18 months. These recent developments highlight Upstart's commitment to growth in the lending sector.
InvestingPro Insights
Recent data from InvestingPro sheds light on Upstart Holdings' (NASDAQ:UPST) financial performance and market position, providing context to the recent insider sale by Chief Legal Officer Scott Darling.
Upstart's stock has shown remarkable strength recently, with InvestingPro data revealing a 55.22% price return over the past month and an impressive 236.23% return over the last six months. This surge in stock price aligns with the timing of Darling's sale, potentially indicating a strategic decision to capitalize on the stock's upward momentum.
Despite the positive stock performance, InvestingPro Tips highlight that Upstart is not currently profitable, with analysts not anticipating profitability this year. The company's Price to Book ratio stands at a high 12.0, suggesting the market has priced in significant growth expectations.
It's worth noting that Upstart's revenue growth has been solid, with a 20.13% increase in the most recent quarter. However, the company faces challenges, as evidenced by its negative operating income margin of -27.86% for the last twelve months.
InvestingPro Tips also indicate that Upstart's stock generally trades with high price volatility, which could explain the company's use of 10b5-1 trading plans for insider transactions, as seen with Darling's recent sale.
For investors seeking a deeper understanding of Upstart's financial health and market position, InvestingPro offers 13 additional tips, providing a comprehensive analysis to inform investment decisions.
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