Natalia Mirgorodskaya, Corporate Controller at Upstart (NASDAQ:UPST) Holdings, Inc. (NASDAQ:UPST), reported selling shares worth $240,022, according to a recent SEC filing. The transactions, executed under a pre-arranged trading plan, involved the sale of 5,000 shares across two days. On October 11, 2,000 shares were sold at a weighted average price of $45.0113, and on October 14, 3,000 shares were sold at $50 per share.
In addition to these sales, Mirgorodskaya exercised stock options to acquire a total of 5,000 shares at $1.17 each on the same dates. After these transactions, Mirgorodskaya holds 21,518 shares directly. The sales were part of a Rule 10b5-1 trading plan adopted earlier this year.
In other recent news, Upstart has secured a significant programmatic purchase commitment of up to $2 billion from Blue Owl Capital Inc. In addition, the company announced a $300 million offering of Convertible Senior Notes due in 2029, with the proceeds intended for financing capped call transactions and repurchasing part of its outstanding 0.25% Convertible Senior Notes due in 2026. Mizuho Securities reaffirmed an Outperform rating on Upstart's shares, citing potential growth drivers such as lower consumer consumption affecting delinquency rates and the ramp-up of new products like Home Equity Lines of Credit and Auto loans. On the other hand, BofA Securities raised its price target for Upstart from $23 to $27, maintaining an Underperform rating, following the company's recent financial results. These recent developments come as Upstart's loan volume and revenue growth are accelerating, with the company anticipating total revenues of approximately $150 million for Q3 2024 and projecting positive adjusted EBITDA in Q4 2024.
InvestingPro Insights
The recent stock sales by Upstart Holdings' Corporate Controller come at a time when the company's stock is experiencing significant momentum. According to InvestingPro data, Upstart has seen a remarkable 146.44% price total return over the past six months, and is currently trading near its 52-week high, with the price at 92.32% of its peak.
This strong performance is reflected in two key InvestingPro Tips. First, the stock has shown a "Significant return over the last week," with a 26.07% price total return in just seven days. Second, Upstart has demonstrated a "Strong return over the last three months," with an impressive 80.47% gain.
However, potential investors should note that the stock's rapid ascent has pushed its valuation metrics to elevated levels. The company's Price to Book ratio stands at 7.96, which an InvestingPro Tip identifies as "Trading at a high Price / Book multiple."
It's worth noting that despite the stock's recent performance, Upstart faces some financial challenges. The company is not currently profitable, with a negative operating income of $168.64 million over the last twelve months. Additionally, an InvestingPro Tip indicates 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 position and market dynamics.
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