In a recent move at Upstart (NASDAQ:UPST) Holdings, Inc. (NASDAQ:UPST), Chief Legal Officer Scott Darling has sold shares totaling approximately $1.75 million. The transactions occurred on August 29, 2024, and were filed with the Securities and Exchange Commission on September 3, 2024.
Darling sold a total of 39,000 shares of Upstart Holdings at prices ranging from $45.00 to $45.0050, with the weighted average price per share at $45.00. This sale resulted in a total value of $1.75 million for the sold shares. It should be noted that these sales were executed in accordance with a Rule 10b5-1 trading plan, which was adopted on February 29, 2024.
In addition to the sales, Darling also exercised options to buy 30,000 shares of Upstart Holdings common stock at a price of $13.22 per share, totaling $396,600. The options were part of an employee stock option plan, with the right to buy shares that vest over time according to a schedule detailed in a footnote of the filing. Following these transactions, Darling's direct ownership in the company stands at 164,870 shares of common stock.
The transactions were disclosed in a Form 4 filing, which is used to report changes in company insiders' ownership positions. Upstart Holdings, based in San Mateo, California, operates within the finance services sector and is known for its lending platform that leverages artificial intelligence to streamline the loan origination and credit risk assessment process.
Investors and market watchers often pay close attention to insider buying and selling as it can provide insights into the company's performance and insiders' perspectives on the stock's value. However, such transactions are not necessarily indicative of future price movements and can be influenced by a variety of factors, including personal financial planning and diversification strategies.
For further details on these transactions, interested parties can refer to the full SEC filing.
In other recent news, AMOCO Federal Credit Union has partnered with Upstart to provide AI-driven personal loans. The collaboration, initiated in March 2023, integrates AMOCO into the Upstart Referral Network (LON:NETW), enhancing the lending experience for AMOCO's 106,000 members. In financial updates, Upstart reported a year-over-year decline of 9% in fee revenue to $131 million but saw a 31% increase in loan transaction volume. The company also projects positive adjusted EBITDA in Q4 2024. Furthermore, Upstart has forecasted total revenues of approximately $150 million for Q3 2024. These recent developments reflect Upstart's ongoing efforts to refine its AI-driven lending platform and its strategic move towards a more sustainable and diversified funding structure.
InvestingPro Insights
As Upstart Holdings, Inc. (NASDAQ:UPST) navigates through the financial services landscape, recent insider transactions have drawn attention to the company's stock performance and valuation. Scott Darling's share sale comes at a time when Upstart's market capitalization stands at approximately $3.42 billion, reflecting the scale of the business in the competitive fintech sector.
Notably, Upstart's stock has demonstrated significant price volatility, which is a key point for investors to consider. The company's stock has seen a strong return over the last three months, with a 76.2% increase. This performance is echoed in the one-month price total return of 78.87%, indicative of recent positive momentum in the stock's trading pattern. These metrics underscore the high price volatility mentioned in one of the InvestingPro Tips, which could be a double-edged sword for traders and investors alike.
From a valuation standpoint, Upstart is trading at a high Price / Book multiple of 5.76 as of the last twelve months leading up to Q2 2024. This suggests that the market is assigning a premium to the company's book value, which can be a point of analysis for value-oriented investors. Additionally, the company's liquid assets are reported to exceed its short-term obligations, providing a measure of financial stability.
However, analysts are not expecting the company to be profitable this year, and it has not been profitable over the last twelve months. This is reflected in the negative P/E ratio of -16.58, which can be a concern for investors looking for current earnings stability. Despite these challenges, Upstart's gross profit margin remains robust at 73.76%, highlighting the company's ability to maintain profitability at the operational level before other expenses are accounted for.
For those interested in further insights, InvestingPro offers additional tips on Upstart Holdings, which can be accessed for a deeper dive into the company's financial health and market performance. In total, there are 11 more InvestingPro Tips available for Upstart, which can provide valuable guidance for those looking to make informed investment decisions.
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