Upstart (NASDAQ:UPST) Holdings, Inc. (NASDAQ:UPST) Chief Technology Officer, Paul Gu, recently sold shares of the company's common stock, according to a new SEC filing. The transactions, which took place on June 3, 2024, involved the sale of 15,000 shares at prices ranging from $25.00 to $25.47, with a weighted average price of $25.2001 per share, totaling approximately $378,001.
The sale was conducted under a Rule 10b5-1 trading plan, which was previously adopted by Gu on February 29, 2024. Rule 10b5-1 allows corporate insiders to set up a predetermined plan to sell company stocks, providing them the ability to avoid accusations of insider trading by trading on nonpublic information.
On the same day, Gu also acquired 15,000 shares of Upstart common stock at a price of $1.17 per share, totaling $17,550. These shares were acquired through the exercise of employee stock options that are fully vested and exercisable as of the date of the transaction.
Following these transactions, Paul Gu's ownership in Upstart Holdings has been adjusted to 894,629 shares of common stock directly held. The recent sales and acquisitions reflect typical financial activities of corporate executives managing their personal investment portfolios and equity compensation.
Investors often monitor insider transactions for insights into the sentiment of company executives and their perspectives on the company's future performance. However, it is essential to consider that trading decisions by executives can be influenced by various factors, including personal financial planning and diversification strategies.
Upstart Holdings, headquartered in San Mateo, California, operates within the financial services sector, providing an AI-driven lending platform that improves access to affordable credit while reducing the risks and costs of lending for its bank partners.
In other recent news, Upstart Holdings Inc . has been the subject of several analyst adjustments. Redburn-Atlantic upgraded the company's rating from a Sell to a Neutral, citing advancements in product innovation, funding, and balance sheet strength. The firm also increased the price target to $25.50 from $22.50. However, Mizuho Securities reduced its price target for Upstart to $17 from $23 due to lower-than-expected originations and a quarter-over-quarter decline in loan growth.
In terms of financial performance, Upstart reported Q1 2024 revenue from fees of $138 million, with a net revenue of $128 million after accounting for net interest income losses. The company also reported loan transactions totaling 119,000 and incurred operating expenses of $195 million. Looking forward, Upstart anticipates revenues of approximately $125 million for Q2 2024 and expects to return to positive EBITDA by year-end.
These recent developments underscore Upstart's strategic focus on integrating artificial intelligence into lending practices, despite challenging macroeconomic conditions. The company has also launched new loan products and an AI certification program for bank executives, indicating its commitment to innovation.
InvestingPro Insights
As investors digest the recent insider trading activity of Upstart Holdings, Inc. (NASDAQ:UPST), it's important to consider the broader financial health and market performance of the company. According to InvestingPro data, Upstart has a market capitalization of $2.33 billion, with a negative P/E ratio of -12.85, reflecting investor concerns over profitability. The company's revenue for the last twelve months as of Q1 2024 stands at $576.9 million, indicating a decrease of 11.55% from the previous period. Despite a challenging revenue trend, the company did experience a quarterly revenue growth of 25.85% in Q1 2024, which may suggest potential for near-term improvement.
InvestingPro Tips highlight that while Upstart has delivered a significant return over the last week, with a 1-week price total return of 8.86%, analysts have revised their earnings expectations downwards for the upcoming period. Furthermore, the company's stock price movements are noted to be quite volatile. It's worth mentioning that Upstart does not pay a dividend, which may influence the investment strategy for income-focused shareholders.
For those looking to delve deeper into Upstart's financial metrics and strategic outlook, InvestingPro offers additional tips and insights. There are currently 6 more InvestingPro Tips available, which can help investors make more informed decisions. Interested readers can explore these insights and benefit from a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.