SAN MATEO, CA—Paul Gu, Chief Technology Officer of Upstart (NASDAQ:UPST) Holdings, Inc. (NASDAQ:UPST), recently made significant stock transactions, according to a filing with the Securities and Exchange Commission. On November 25, Gu sold a total of 58,786 shares of common stock, generating approximately $4.46 million. The shares were sold at prices ranging from $75.5085 to $77.25.
Additionally, Gu exercised options to acquire 58,786 shares at a price of $1.17 per share. Following these transactions, Gu holds 863,065 shares directly.
The transactions were executed as part of a pre-established trading plan under Rule 10b5-1, which allows company insiders to set up a predetermined plan to sell stock. The plan was adopted on February 29, 2024, ensuring compliance with insider trading regulations.
In other recent news, Upstart Holdings, a cloud-based artificial intelligence lending platform, has reported several significant developments. The company announced plans for a private offering of $425 million in Convertible Senior Notes due 2030, with the net proceeds to be used for general corporate purposes. In addition, Upstart reported a 43% sequential increase in lending volume and a significant rise in revenue for the third quarter. The company's expansion into the auto loan and home equity line of credit markets yielded positive results, with the HELOC business doubling and auto loan originations increasing by 46%.
Analysts at Mizuho (NYSE:MFG) raised the price target for Upstart to $90, maintaining an Outperform rating on the stock, following the company's strong Q3 performance and increased fourth-quarter guidance. BTIG upgraded Upstart's stock rating from Sell to Neutral, citing the potential for accelerated volume growth.
Lastly, Upstart secured a strategic partnership with Blue Owl, guaranteeing up to $2 billion in loan purchases over the next 18 months. These recent developments indicate Upstart's ongoing commitment to growth in the lending sector.
InvestingPro Insights
Paul Gu's recent stock transactions at Upstart Holdings, Inc. (NASDAQ:UPST) come at a time when the company's stock has shown remarkable performance. According to InvestingPro data, Upstart has experienced a significant 236.23% price total return over the past six months, and an impressive 222.56% return over the last year. This strong performance aligns with an InvestingPro Tip indicating that Upstart has seen a "Significant return over the last week," suggesting ongoing positive momentum.
Despite these gains, it's worth noting that Upstart is currently trading at a high Price / Book multiple of 12.0, as per InvestingPro data. This valuation metric, coupled with another InvestingPro Tip stating that "Analysts do not anticipate the company will be profitable this year," may provide context for Gu's decision to sell shares.
Investors should also be aware that Upstart's stock "generally trades with high price volatility," according to an InvestingPro Tip. This volatility is reflected in the company's substantial price movements across various timeframes.
For those seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Upstart, providing a deeper understanding of the company's financial health and market position.
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