SAN MATEO, CA—Paul Gu, Chief Technology Officer of Upstart (NASDAQ:UPST) Holdings, Inc. (NASDAQ:UPST), executed a series of stock transactions on November 15, according to a recent filing with the Securities and Exchange Commission.
Gu sold shares totaling approximately $4.33 million, with transaction prices ranging from $65.43 to $69.17 per share. These sales were part of a pre-arranged trading plan under Rule 10b5-1, which was adopted earlier this year.
In addition to the sales, Gu exercised options to acquire 65,000 shares of Upstart's common stock at a price of $1.17 per share. Following these transactions, Gu holds 878,565 shares in the company.
Upstart Holdings, a finance services company, continues to be a significant player in the financial technology sector, leveraging artificial intelligence to improve access to credit.
In other recent news, Upstart Holdings, Inc. has announced a private offering of $425 million in Convertible Senior Notes due 2030, aiming at qualified institutional buyers. This move is part of their recent developments, which include a strong third-quarter performance with a 43% sequential increase in lending volume and a significant rise in revenue. Despite a GAAP net loss of $7 million for Q3, 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 from the previous $48, maintaining an Outperform rating on the stock. 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.
Upstart's expansion into the auto loan and home equity line of credit (HELOC) markets has shown promising results, with the HELOC business doubling and auto loan originations increasing by 46%. The company also secured a strategic partnership with Blue Owl, guaranteeing up to $2 billion in loan purchases over the next 18 months. These recent developments underscore Upstart's ongoing commitment to growth in the lending sector.
InvestingPro Insights
Recent data from InvestingPro sheds light on Upstart Holdings' financial position and market performance, providing context to Paul Gu's recent stock transactions. The company's market capitalization stands at $6.49 billion, reflecting its substantial presence in the fintech sector.
Upstart's stock has demonstrated remarkable volatility and growth, aligning with the InvestingPro Tip that the "stock generally trades with high price volatility." This is evidenced by the impressive 166.89% price total return over the past year, and a striking 168.67% return over the last six months. Such strong performance may have influenced the timing of Gu's stock sales.
Despite the positive stock performance, InvestingPro data indicates that Upstart is not currently profitable, with a negative operating income of $168.54 million in the last twelve months. This aligns with another InvestingPro Tip stating that "analysts do not anticipate the company will be profitable this year." However, the company's revenue growth of 20.13% in the most recent quarter suggests ongoing business expansion.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Upstart Holdings, providing deeper insights into the company's financial health and market position.
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