Natalia Mirgorodskaya, an executive at Upstart (NASDAQ:UPST) Holdings, Inc. (NASDAQ:UPST), reported a sale of 1,411 shares of common stock, according to a recent SEC filing. The shares were sold on November 25 at an average price of $77.365, totaling approximately $109,162. Following this transaction, Mirgorodskaya holds 18,596 shares directly. The sale was conducted under a Rule 10b5-1 trading plan, which was adopted on May 30, 2024.
In other recent news, Upstart Holdings, Inc. has announced plans for a private offering of $425 million in Convertible Senior Notes due 2030, aimed at qualified institutional buyers. The company reported strong third-quarter results, with a 43% sequential increase in lending volume and a significant rise in revenue. Additionally, Upstart'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%.
Analysts at Mizuho (NYSE:MFG) have raised the price target for Upstart, maintaining an Outperform rating on the stock, following the company's positive performance in the third quarter. 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.
Recent developments also include a strategic partnership with Blue Owl, which guarantees up to $2 billion in loan purchases over the next 18 months. 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. These developments are a clear indication of Upstart's ongoing commitment to growth in the lending sector.
InvestingPro Insights
The recent insider sale by Natalia Mirgorodskaya at Upstart Holdings, Inc. (NASDAQ:UPST) comes amid a period of significant stock performance for the company. According to InvestingPro data, Upstart has seen a remarkable 236.23% price total return over the past six months, with a 55.22% return in the last month alone. This strong performance is reflected in the stock's current price, which stands at 91.04% of its 52-week high.
Despite the impressive stock gains, InvestingPro Tips highlight that Upstart is not expected to be profitable this year, and the company has not been profitable over the last twelve months. This is evident in the negative operating income of -$168.54 million for the last twelve months as of Q3 2023. However, the company's revenue growth remains positive, with a 20.13% increase in the most recent quarter.
Investors should note that Upstart's stock generally trades with high price volatility, which aligns with the recent insider sale and the stock's significant price movements. The company's Price to Book ratio of 12.0 suggests it's trading at a premium compared to its book value, which could be a consideration for value-oriented investors.
For those seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Upstart, providing a deeper understanding of the company's financial health and market position.
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