Upstart (NASDAQ:UPST) Holdings, Inc. (NASDAQ:UPST) Corporate Controller Natalia Mirgorodskaya has sold a significant portion of her company stock, according to a recent SEC filing. The executive sold 5,000 shares at an average price range of $40.9882 to $41.5439, totaling approximately $205,141.
The transactions, which took place on September 3, 2024, were executed under a pre-arranged trading plan known as Rule 10b5-1, which allows company insiders to set up a trading schedule in advance to avoid accusations of insider trading.
In addition to the sale, the filing also disclosed that Mirgorodskaya exercised options to buy 5,000 shares of Upstart Holdings common stock at a price of $1.17 per share, costing a total of $5,850. This transaction was part of an employee stock option plan, and all shares subject to this option were fully vested and exercisable as of the transaction date.
Following the sale and option exercise, the Corporate Controller's ownership in the company has been adjusted, as detailed in the SEC filing. The document notes that some of the shares owned following the transactions are restricted stock units (RSUs), which are contingent rights to receive shares of common stock subject to vesting schedules and conditions.
Investors and followers of Upstart Holdings will be watching how these insider transactions might reflect on the company's current stock performance and future prospects.
In other recent news, Upstart Holdings, Inc. has witnessed significant developments. The company reported its Q2 2024 financial outcomes, emphasizing a trajectory towards sequential growth and EBITDA profitability. Despite a 9% decline in fee revenue year-over-year to $131 million, Upstart saw a 31% increase in loan transaction volume and projects positive adjusted EBITDA in Q4 2024.
Upstart also launched a new credit pricing model, M18, and expanded its product offerings. The AI lending platform reduced its reliance on its balance sheet for loan funding, signing eight new lenders, and creating a competitive environment that led to lower loan prices for borrowers. The company has forecasted total revenues of approximately $150 million for Q3 2024.
Furthermore, Upstart has entered into a partnership with AMOCO Federal Credit Union, a Texas-based financial cooperative, to offer AI-driven personal loans. This collaboration integrates AMOCO into the Upstart Referral Network (LON:NETW), enhancing the member experience and extending credit access to underserved communities. 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
Amid the recent insider transactions at Upstart Holdings, Inc. (NASDAQ:UPST), investors are evaluating the company's financial health and stock performance. According to InvestingPro, Upstart's market capitalization stands at $3.2 billion, reflecting the size and scale of the company within the technology and loan industry. Despite a challenging period, the company has shown notable stock resilience with a strong return over the last month, as the price increased by 52.2%.
InvestingPro Tips suggest that while Upstart's stock has experienced significant volatility, with analysts noting the stock's high price movements, the company's liquid assets currently exceed its short-term obligations. This indicates a solid liquidity position that may reassure investors about the company's ability to meet its immediate financial liabilities. Moreover, while analysts do not expect the company to be profitable this year, the revenue growth over the last twelve months was 2.52%, pointing to a degree of resilience in Upstart's business operations.
With a P/E ratio of -15.28 and a Price/Book ratio of 5.38, the stock is trading at multiples that suggest a high growth expectation from the market. However, the recent price correction has brought the stock closer to the fair value estimates provided by analysts, which is currently at $25, and the InvestingPro Fair Value at $29.6. For investors looking for more detailed analysis, there are an additional 11 InvestingPro Tips available, offering deeper insights into Upstart's financial metrics and stock performance trends.
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