SAN MATEO, CA – In a recent move, Scott Darling, the Chief Legal Officer of Upstart (NASDAQ:UPST) Holdings, Inc. (NASDAQ:UPST), sold a significant portion of his company shares, resulting in over $460,000 in transactions. The sales occurred on September 3, 2024, as detailed in the latest regulatory filings.
The transactions included the sale of 7,000 shares at a weighted average price of $40.99, totaling approximately $286,917. Additionally, Darling sold 500 shares at an average price of $41.54, 3,727 shares at $41.02, and 100 shares at $41.58. These sales were executed in multiple transactions at prices ranging from $40.48 to $41.58, with the total value of all sales reaching $464,713.
In conjunction with the sales, Darling also exercised options to acquire 7,500 shares of Upstart Holdings' common stock at a set price of $13.22 per share, amounting to a total transaction value of $99,150. These transactions were made in accordance with a pre-established trading plan, known as a Rule 10b5-1 plan, which was adopted on February 29, 2024.
Following these transactions, Darling's ownership in the company stands at 161,043 shares of common stock. It should be noted that some of these securities are in the form of restricted stock units (RSUs), which are contingent on vesting schedules and conditions.
Investors and followers of Upstart Holdings' financial movements often pay close attention to insider sales and purchases as they can provide valuable insights into the company's performance and the confidence level of its top executives. The details of the transactions, including the number of shares sold at each price point, are available upon request from the company or the SEC.
Upstart Holdings, Inc., based 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 making significant strides in its operations. The company reported its Q2 2024 financial outcomes, which showed a trajectory towards sequential growth and EBITDA profitability. Despite a 9% year-over-year decline in fee revenue to $131 million, the AI lending platform saw a 31% increase in loan transaction volume and is projecting positive adjusted EBITDA in Q4 2024.
The company also launched a new credit pricing model, M18, and expanded its product offerings. Further, Upstart has reduced its reliance on its balance sheet for loan funding, having onboarded eight new lenders, which has resulted in a competitive environment leading to lower loan prices for borrowers. For Q3 2024, the company is forecasting total revenues of approximately $150 million.
In terms of partnerships, Upstart has teamed up with AMOCO Federal Credit Union to offer AI-driven personal loans. This collaboration integrates AMOCO into the Upstart Referral Network (LON:NETW), providing a more efficient lending experience for AMOCO's members and the wider community. The partnership is expected to help AMOCO serve a broader range of individuals in the Houston and Galveston markets. These are recent developments that continue to shape Upstart's strategic direction.
InvestingPro Insights
As investors digest the recent insider sales by Scott Darling, Chief Legal Officer of Upstart Holdings, Inc., it's important to consider the broader financial context in which these transactions occur. According to InvestingPro data, Upstart Holdings currently has a market capitalization of approximately $3.2 billion, reflecting the scale of the company within the financial services sector.
The company's stock has demonstrated significant price volatility, as indicated by a high Price / Book multiple of 5.38. This metric suggests investors are paying a premium for the company's book value, which could be a sign of market optimism about the company's technology and future growth prospects, despite recent price fluctuations. Indeed, the stock has seen a strong return over the last month, with a 52.2% increase, and over the last three months, with a 35.21% increase. This contrasts with a more turbulent short-term performance, as the 1-week price total return shows a 14.52% decrease.
While Upstart has experienced revenue growth of 2.52% over the last twelve months as of Q2 2024, analysts have raised concerns about profitability, as reflected in the company's negative P/E Ratio of -15.28. This sentiment is further supported by the InvestingPro Tip that analysts do not anticipate the company will be profitable this year. Additionally, the company's operating income margin stands at -29.28%, which underscores the challenges Upstart faces in achieving profitability.
For investors looking for more detailed analysis and additional InvestingPro Tips, there are 11 more tips available on InvestingPro for Upstart Holdings, Inc., which can be found at https://www.investing.com/pro/UPST. These tips could provide further insights into the company's financial health and future performance, helping investors make more informed decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.