SAN MATEO, CA—Sanjay Datta, the Chief Financial Officer of Upstart (NASDAQ:UPST) Holdings, Inc. (NASDAQ:UPST), recently sold shares of the company's stock valued at approximately $1.3 million. The transactions were disclosed in a filing with the Securities and Exchange Commission.
The sales took place on November 20, with shares sold in two separate transactions. The first transaction involved the sale of 13,941 shares at a weighted average price of $69.5934, while the second transaction included 4,678 shares sold at a weighted average price of $70.5002. The prices ranged from $69.085 to $70.815 across both transactions.
Following these transactions, Datta retains direct ownership of 310,974 shares of Upstart Holdings. The shares were sold to cover tax withholding obligations related to the vesting of restricted stock units (RSUs).
Upstart Holdings is a financial services company based in San Mateo, California, known for its innovative approach to lending through the use of artificial intelligence.
In other recent news, Upstart Holdings, Inc. has announced a private offering of $425 million in Convertible Senior Notes due 2030, with an option for initial purchasers to buy an additional $75 million of the notes within a 13-day period starting from the issue date. The proceeds from the offering will be used for general corporate purposes, including repaying or retiring existing debt. Alongside this, Upstart reported a strong third quarter with a 43% sequential increase in lending volume and a significant rise in revenue. The company's expansion into the auto loan and home equity line of credit markets yielded promising results, with auto loan originations increasing by 46% and the HELOC business doubling.
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 the midst of these developments, Upstart also secured a strategic partnership with Blue Owl, which guarantees up to $2 billion in loan purchases over the next 18 months. These are some of the recent developments that highlight Upstart's ongoing commitment to growth in the lending sector.
InvestingPro Insights
The recent stock sale by Upstart Holdings' CFO Sanjay Datta comes amid a period of significant volatility and strong performance for the company's shares. According to InvestingPro data, Upstart's stock has shown remarkable returns, with a 215.42% price total return over the past year and an impressive 204.4% return over the last six months. This aligns with the InvestingPro Tip that Upstart has experienced a "Large price uptick over the last six months."
Despite the strong stock performance, it's worth noting that Upstart faces some financial challenges. The company's P/E ratio stands at -38.4, and an InvestingPro Tip indicates that analysts do not anticipate the company will be profitable this year. This context adds significance to the CFO's decision to sell shares, even if it was primarily to cover tax obligations.
Interestingly, another InvestingPro Tip reveals that 7 analysts have revised their earnings upwards for the upcoming period, suggesting some optimism about Upstart's future performance. However, with a Price to Book ratio of 10.94, the stock is trading at a high multiple, which investors should consider when evaluating the company's valuation.
For those seeking a more comprehensive analysis, InvestingPro offers 13 additional tips on Upstart Holdings, providing deeper insights into the company's financial health and market position.
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