SAN MATEO, CA—Sanjay Datta, the Chief Financial Officer of Upstart (NASDAQ:UPST) Holdings, Inc. (NASDAQ:UPST), recently executed a sale of company stock valued at approximately $73,020. The transaction, which took place on October 14, involved the sale of 1,500 shares at an average price of $48.68 per share.
Following this sale, Datta holds 337,093 shares in the company. The transaction was conducted under a pre-established Rule 10b5-1 trading plan, which Datta adopted earlier this year on February 26. This plan allows executives to set up a predetermined schedule for selling stocks to avoid any allegations of insider trading.
Certain shares held by Datta are restricted stock units (RSUs), which represent a right to receive shares of common stock subject to specific vesting conditions.
In other recent news, Upstart has secured a substantial loan purchase agreement with Blue Owl Capital Inc., amounting to a commitment of up to $2 billion. This deal, facilitated by Atalaya Capital Management LP, is expected to boost the efficiency of the consumer lending process. In addition, Upstart announced a $300 million offering of Convertible Senior Notes due in 2029, with the proceeds planned for financing capped call transactions and repurchasing part of its outstanding 0.25% Convertible Senior Notes due in 2026.
Investor sentiments towards Upstart have been influenced by recent analyst ratings. Mizuho Securities maintained an Outperform rating on Upstart's shares, with a steady price target of $48.00, suggesting potential growth drivers such as lower consumer consumption affecting delinquency rates and the introduction of new products. However, BofA Securities raised its price target for Upstart from $23 to $27, while maintaining an Underperform rating.
Upstart's recent financial performance has shown promising developments. Despite a 9% year-over-year decline in fee revenue to $131 million, the company saw a 31% increase in loan transaction volume. Upstart anticipates total revenues of approximately $150 million for Q3 2024 and projects positive adjusted EBITDA in Q4 2024.
In a strategic move, Upstart has also formed a partnership with AMOCO Federal Credit Union to offer AI-driven loans. This initiative is part of Upstart's ongoing efforts to enhance its lending capabilities and diversify its funding structure. These developments are part of the recent news surrounding Upstart and its continued efforts to navigate the evolving landscape of consumer finance.
InvestingPro Insights
Following Sanjay Datta's recent stock sale, Upstart Holdings (NASDAQ:UPST) continues to draw investor attention with its volatile price movements and strong recent performance. According to InvestingPro data, Upstart's stock has shown significant returns, with a 42.18% gain over the past month and an impressive 146.44% increase over the last six months. This aligns with an InvestingPro Tip indicating that the stock has experienced a "significant return over the last week."
The company's market capitalization stands at $4.79 billion, reflecting its current position in the fintech sector. However, investors should note that Upstart is not currently profitable, with a negative P/E ratio of -23.47 for the last twelve months as of Q2 2023. This is consistent with another InvestingPro Tip suggesting that analysts do not anticipate the company will be profitable this year.
Despite the lack of profitability, Upstart's revenue for the last twelve months as of Q2 2023 was $575.96 million, with a gross profit margin of 73.76%. This high margin suggests that the company's core business model is potentially lucrative, even as it navigates towards profitability.
For investors 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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