Natalia Mirgorodskaya, Chief Accounting Officer and Controller at Upstart (NASDAQ:UPST) Holdings, Inc. (NASDAQ:UPST), recently sold shares of common stock in two separate transactions. The transactions, which occurred on November 20, 2024, involved the sale of a total of 1,511 shares. The sales were executed at prices ranging from $69.6169 to $70.4859 per share, amounting to a combined value of $105,545.
These shares were sold to cover tax withholding obligations related to the vesting of restricted stock units (RSUs). Following the transactions, Mirgorodskaya holds 20,007 shares of the company.
In other recent news, Upstart Holdings, a cloud-based artificial intelligence lending platform, has announced robust third-quarter results, 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 (HELOC) markets yielded promising results, with the HELOC business doubling and auto loan originations increasing by 46%. Despite a GAAP net loss of $7 million for Q3, Upstart anticipates continued growth, projecting total Q4 revenues of approximately $180 million and an adjusted EBITDA of $5 million.
In addition to these developments, Upstart has announced plans for a private offering of $425 million in Convertible Senior Notes due 2030, aimed at qualified institutional buyers. The net proceeds from the offering will be used for general corporate purposes, which may include repaying or retiring existing debt.
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. 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.
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 recent developments underscore Upstart's ongoing commitment to growth in the lending sector.
InvestingPro Insights
While Natalia Mirgorodskaya's recent stock sale was primarily to cover tax obligations, it's worth examining Upstart Holdings' current financial position and market performance to provide context for investors.
According to InvestingPro data, Upstart's market capitalization stands at $6.75 billion, reflecting significant investor interest. The company has demonstrated impressive growth, with a striking 215.42% price total return over the past year. This performance aligns with an InvestingPro Tip indicating that Upstart has shown a "high return over the last year."
Despite the strong stock performance, it's important to note that Upstart is not currently profitable. An InvestingPro Tip suggests that "analysts do not anticipate the company will be profitable this year." This is supported by the negative operating income of -$168.54 million for the last twelve months as of Q3 2023.
Investors should be aware that Upstart's stock "generally trades with high price volatility," as noted by another InvestingPro Tip. This volatility is evident in the company's substantial 204.4% price total return over the past six months.
For those seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Upstart Holdings, providing a deeper understanding of the company's financial health and market position.
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