SAN MATEO, Calif.—Paul Gu, the Chief Technology Officer of Upstart (NASDAQ:UPST) Holdings, Inc. (NASDAQ:UPST), recently sold a significant portion of his holdings in the company. According to a recent SEC filing, Gu sold a total of 21,214 shares on November 21, 2024, at a weighted average price of $75.0256 per share, amounting to approximately $1,591,593.
In addition to this, Gu executed sales on November 20, 2024, disposing of 11,476 shares at an average price of $69.595 and 4,024 shares at an average price of $70.4501. These transactions collectively totaled $1,082,163.
The sales were part of a pre-arranged trading plan under Rule 10b5-1, which allows company insiders to sell a predetermined number of shares at a predetermined time to avoid any allegations of insider trading. Gu's transactions were executed to cover tax obligations related to the vesting of restricted stock units.
Following these transactions, Gu retains a direct ownership of 863,065 shares in Upstart Holdings.
In other recent news, Upstart Holdings, Inc. announced plans for a private offering of $425 million in Convertible Senior Notes due 2030, with proceeds intended for general corporate purposes. Concurrently, the company reported strong third-quarter results, including a 43% sequential increase in lending volume and significant revenue growth. The company's expansion into auto loans and home equity lines of credit (HELOC) markets also yielded promising results, with HELOC business doubling and auto loan originations increasing by 46%.
Analysts from Mizuho (NYSE:MFG) and BTIG have responded to these developments, adjusting their outlook on Upstart. Mizuho raised the price target for Upstart to $90, maintaining an Outperform rating, while BTIG upgraded the stock rating from Sell to Neutral. These changes are based on the company's positive third-quarter performance and increased fourth-quarter guidance.
In addition to these developments, Upstart secured a strategic partnership with Blue Owl, guaranteeing up to $2 billion in loan purchases over the next 18 months. Despite reporting a GAAP net loss of $7 million for Q3, Upstart anticipates continued growth, projecting Q4 revenues of approximately $180 million and an adjusted EBITDA of $5 million. These recent developments underscore Upstart's ongoing commitment to growth in the lending sector.
InvestingPro Insights
Paul Gu's recent stock sales come at a time when Upstart Holdings (NASDAQ:UPST) is experiencing significant market volatility and price momentum. According to InvestingPro data, the company's stock has shown a remarkable 215.42% price total return over the past year, with an even more impressive 204.4% return in the last six months. This aligns with the InvestingPro Tip indicating that the stock has seen a "large price uptick over the last six months."
Despite the strong recent performance, it's worth noting that Upstart is currently trading at a high Price / Book multiple of 10.94, as highlighted by another InvestingPro Tip. This suggests that investors are placing a premium on the company's future growth prospects, even as analysts do not anticipate profitability this year.
The company's financial health shows mixed signals. While Upstart's liquid assets exceed short-term obligations, it has not been profitable over the last twelve months, with an operating income margin of -27.86%. However, the company has shown revenue growth, with a 20.13% increase in the most recent quarter.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Upstart Holdings, providing a deeper understanding of the company's financial position and market performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.