Scott Darling, Chief Legal Officer at Upstart (NASDAQ:UPST) Holdings, Inc. (NASDAQ:UPST), executed a series of stock transactions earlier this month. On October 11 and October 14, Darling sold a total of 104,000 shares of Upstart Holdings common stock, generating approximately $5.1 million. The sale prices ranged from $45.0036 to $50.0233 per share.
In conjunction with these sales, Darling also exercised stock options to acquire a total of 95,000 shares on the same dates, at an exercise price of $13.22 per share. Following these transactions, Darling's direct ownership amounts to 152,043 shares. These transactions were conducted under a pre-established Rule 10b5-1 trading plan.
In other recent news, artificial intelligence lending marketplace, Upstart, has secured a significant agreement with Blue Owl Capital Inc., with a commitment to purchase up to $2 billion in loans. This strategic move is set to expand access to affordable credit and enhance the efficiency of the consumer lending process. The company also announced a $300 million offering of Convertible Senior Notes due in 2029, and plans to repurchase part of its outstanding 0.25% Convertible Senior Notes due in 2026.
Mizuho Securities reaffirmed an Outperform rating on Upstart's shares, while BofA Securities raised its price target for Upstart, maintaining an Underperform rating. These adjustments followed Upstart's second-quarter results that exceeded expectations. The company's loan volume and revenue growth are accelerating, with total revenues of approximately $150 million anticipated for Q3 2024 and positive adjusted EBITDA projected for Q4 2024.
In addition, Upstart has formed a partnership with AMOCO Federal Credit Union to offer AI-driven loans, which is expected to enhance its lending capabilities. Despite a 9% year-over-year decline in fee revenue to $131 million, Upstart saw a 31% increase in loan transaction volume. These developments highlight Upstart's ongoing efforts to refine its AI-driven lending platform and move towards a more sustainable and diversified funding structure.
InvestingPro Insights
Scott Darling's recent stock transactions at Upstart Holdings (NASDAQ:UPST) align with several key trends highlighted by InvestingPro data. The company's stock has shown remarkable performance, with a 99.3% price total return over the past year and a significant 146.44% return over the last six months. This upward momentum is further evidenced by the stock trading near its 52-week high, at 92.32% of that peak.
InvestingPro Tips indicate that UPST has experienced a "significant return over the last week" and is currently trading with "high price volatility." These observations are consistent with the timing and scale of Darling's transactions, suggesting he may be capitalizing on the stock's recent surge.
Despite the positive stock performance, it's worth noting 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 aligns with another InvestingPro Tip stating that "analysts do not anticipate the company will be profitable this year."
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Upstart Holdings, providing a deeper understanding of the company's financial health and market position.
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