Upstart (NASDAQ:UPST) Holdings, Inc. (NASDAQ:UPST) Chief Financial Officer Sanjay Datta recently sold 1,500 shares of the company's common stock, according to a filing with the Securities and Exchange Commission. The shares were sold at an average price of $53.81, totaling approximately $80,715. Following this transaction, Datta holds 335,593 shares in the company. The sale was conducted under a Rule 10b5-1 trading plan, which was adopted by Datta earlier this year on February 26.
In other recent news, Upstart, an artificial intelligence lending marketplace, has secured a significant agreement with Blue Owl Capital Inc., securing a programmatic purchase commitment of up to $2 billion. Concurrently, Upstart announced a $300 million offering of Convertible Senior Notes due in 2029, aimed at qualified institutional buyers. Analysts from Mizuho Securities have reaffirmed an Outperform rating on Upstart's shares, citing potential growth drivers such as lower consumer consumption positively affecting delinquency rates. Meanwhile, BofA Securities has increased its price target for Upstart from $23 to $27, maintaining an Underperform rating, following the company's second-quarter results that exceeded expectations. Upstart's loan volume and revenue growth are accelerating, with the company anticipating total revenues of approximately $150 million for Q3 2024 and projects positive adjusted EBITDA in Q4 2024. These recent developments highlight Upstart's ongoing efforts to refine its AI-driven lending platform and strategic move towards a more sustainable and diversified funding structure.
InvestingPro Insights
While Upstart Holdings' CFO Sanjay Datta's recent stock sale might raise eyebrows, it's crucial to view this transaction within the broader context of the company's performance and market position. According to InvestingPro data, Upstart's stock has shown remarkable strength, with a 104.14% price total return over the past year and an impressive 116.87% return over the last six months. This robust performance aligns with an InvestingPro Tip highlighting Upstart's "strong return over the last three months."
Despite these gains, investors should note that Upstart is currently trading at a high Price / Book multiple of 7.82, as indicated by another InvestingPro Tip. This valuation metric suggests that the market has high expectations for the company's future growth and profitability.
However, it's worth mentioning that analysts do not anticipate the company to be profitable this year, according to an InvestingPro Tip. This projection is supported by the company's current financial metrics, including a negative operating income of -$168.64 million for the last twelve months as of Q2 2023.
For a more comprehensive analysis, InvestingPro offers 7 additional tips that could provide valuable insights into Upstart's financial health and market position. These additional tips could help investors better understand the context of insider transactions like Datta's stock sale.
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