Upstart (NASDAQ:UPST) Shares Down 6.4% – Here’s What Happened

Upstart Holdings, Inc. (NASDAQ:UPST)’s share price traded down 6.4% on Monday . The stock traded as low as $46.45 and last traded at $45.9760. 1,022,335 shares traded hands during trading, a decline of 75% from the average session volume of 4,157,385 shares. The stock had previously closed at $49.12.

Analyst Upgrades and Downgrades

UPST has been the topic of a number of research analyst reports. Weiss Ratings reiterated a “sell (d+)” rating on shares of Upstart in a research note on Monday, December 29th. Piper Sandler dropped their target price on shares of Upstart from $80.00 to $56.00 and set an “overweight” rating on the stock in a report on Wednesday, November 5th. Morgan Stanley set a $45.00 price target on Upstart in a research report on Wednesday, November 5th. Truist Financial initiated coverage on Upstart in a report on Tuesday, January 6th. They set a “buy” rating and a $59.00 price objective on the stock. Finally, JPMorgan Chase & Co. decreased their target price on shares of Upstart from $88.00 to $65.00 and set an “overweight” rating for the company in a report on Wednesday, November 5th. Six investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Upstart presently has an average rating of “Hold” and an average target price of $60.36.

Upstart Trading Down 7.9%

The firm’s fifty day moving average price is $44.32 and its 200-day moving average price is $57.88. The company has a market cap of $4.40 billion, a price-to-earnings ratio of 205.69 and a beta of 2.28.

Upstart (NASDAQ:UPST) last released its earnings results on Tuesday, November 4th. The company reported $0.52 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.42 by $0.10. The firm had revenue of $258.54 million during the quarter, compared to analysts’ expectations of $288.94 million. Upstart had a return on equity of 3.68% and a net margin of 3.33%.The company’s revenue was up 70.9% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.07) EPS. As a group, research analysts anticipate that Upstart Holdings, Inc. will post -0.03 EPS for the current year.

Insider Buying and Selling at Upstart

In other news, Director Kerry Whorton Cooper sold 1,500 shares of the business’s stock in a transaction that occurred on Friday, December 12th. The shares were sold at an average price of $50.00, for a total value of $75,000.00. Following the completion of the transaction, the director directly owned 23,934 shares in the company, valued at approximately $1,196,700. The trade was a 5.90% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CTO Paul Gu acquired 100,000 shares of the company’s stock in a transaction that occurred on Tuesday, November 11th. The stock was bought at an average cost of $39.23 per share, with a total value of $3,923,000.00. Following the purchase, the chief technology officer owned 80,000 shares in the company, valued at $3,138,400. The trade was a -500.00% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last quarter, insiders have sold 16,707 shares of company stock worth $633,080. 16.67% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the stock. Clearstead Advisors LLC purchased a new position in shares of Upstart during the 3rd quarter valued at $25,000. Quarry LP increased its stake in Upstart by 749.2% in the 3rd quarter. Quarry LP now owns 501 shares of the company’s stock worth $25,000 after acquiring an additional 442 shares during the last quarter. Ameritas Advisory Services LLC bought a new stake in Upstart during the second quarter valued at approximately $34,000. Northwestern Mutual Wealth Management Co. grew its position in Upstart by 132.2% in the third quarter. Northwestern Mutual Wealth Management Co. now owns 771 shares of the company’s stock worth $39,000 after acquiring an additional 439 shares in the last quarter. Finally, Steward Partners Investment Advisory LLC increased its position in shares of Upstart by 72.1% during the 2nd quarter. Steward Partners Investment Advisory LLC now owns 864 shares of the company’s stock valued at $56,000 after purchasing an additional 362 shares during the last quarter. Institutional investors own 63.01% of the company’s stock.

About Upstart

Upstart Holdings, Inc operates a cloud-based lending marketplace that leverages artificial intelligence and machine learning to assess borrower creditworthiness. The company partners with banks and credit unions, providing its proprietary AI models and underwriting platform to facilitate consumer credit products. By focusing on non‐traditional data points—such as education, employment history and other real‐time indicators—Upstart seeks to improve approval rates and lower loss rates compared with conventional credit scoring methods.

Upstart’s core offering centers on unsecured personal loans, which borrowers can use for purposes such as debt consolidation, home improvements or major purchases.