In a recent transaction, Upstart (NASDAQ:UPST) Holdings, Inc. (NASDAQ:UPST) Chief Financial Officer Sanjay Datta sold 18,138 shares of company stock for a total value of approximately $464,539. The sale took place on May 20, 2024, with the shares being sold at a weighted average price of $25.6114. The transactions occurred in a range of prices from $25.27 to $26.23.
This stock sale was conducted to cover tax withholding obligations that arose from the vesting of restricted stock units (RSUs), as noted in the footnotes of the filing. Following the sale, CFO Datta still owns a significant number of shares in the company, with a post-transaction total of 382,398 shares, some of which are in the form of RSUs. Each RSU represents a contingent right to receive one share of common stock upon meeting certain vesting conditions.
Investors often monitor insider transactions such as these for insights into executives' perspectives on their company's future performance. However, stock sales to cover tax obligations are quite common and not necessarily indicative of a lack of confidence in the company.
The sale was reported in a Form 4 filing with the Securities and Exchange Commission, which documents the changes in ownership of company stock by its officers, directors, and certain investors. The form was signed by Cynthia Moon, on behalf of Sanjay Datta, by the power of attorney on May 22, 2024.
InvestingPro Insights
Amid the news of Upstart Holdings, Inc. (NASDAQ:UPST) CFO Sanjay Datta's stock sale, additional context is provided by recent data and insights from InvestingPro. The company's market capitalization stands at $2.14 billion, reflecting the current investor valuation of the business. However, Upstart's P/E ratio is at -11.77, and the adjusted P/E ratio for the last twelve months as of Q1 2024 is -12.18, indicating that the company is not currently profitable. This aligns with an InvestingPro Tip that analysts do not expect the company to be profitable this year.
Looking at the stock's performance, Upstart has experienced significant volatility, with a one-week price total return of -12.13% as of the most recent data. This is consistent with another InvestingPro Tip that the stock has taken a big hit over the last week and that price movements have been quite volatile. Despite these challenges, the company's liquid assets exceed short-term obligations, which may provide some financial stability in the near term.
It is also worth noting that Upstart does not pay a dividend to shareholders, which is a consideration for income-focused investors. For those interested in further insights, there are additional InvestingPro Tips available that can help investors make more informed decisions. To explore these tips and gain a deeper understanding of Upstart's financial health and future prospects, visit https://www.investing.com/pro/UPST. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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