Upstart (NASDAQ:UPST) Holdings, Inc. (NASDAQ:UPST) has reported a significant transaction by Chief Technology Officer Paul Gu, who sold a total of $2,361,281 worth of company stock, according to a recent SEC filing. The transactions occurred on May 15, 2024, and involved the sale of 40,306 shares at an average price of $29 and 39,694 shares at an average price of $30.04.
The sales were executed within a price range of $28.66 to $30.13, indicating a variation in the market price at the time of the transactions. The filing also revealed that Gu exercised options for 30,000 shares at $0.60 per share and 50,000 shares at $1.17 per share, representing a total value of $76,500. These option exercises were made under a Rule 10b5-1 trading plan, which had been previously adopted on May 26, 2023.
Following these transactions, the CTO's direct ownership in Upstart Holdings stands at 893,596 shares. It is important to note that some of these securities are restricted stock units (RSUs), which are contingent rights to receive shares of Common Stock upon meeting certain conditions.
Investors often keep a close eye on insider transactions as they can provide insights into the executives' perspectives on the company's current valuation and future prospects. The reported activities are part of the standard disclosure requirements for company insiders and are publicly available for review.
InvestingPro Insights
Amidst the recent insider trading activities, Upstart Holdings, Inc. (NASDAQ:UPST) presents an interesting case for investors looking to understand the company's current financial standing and future prospects. According to InvestingPro data, Upstart has a market capitalization of $2.25 billion, which is a valuable metric for investors considering the size and stability of the company. Despite a challenging revenue growth of -11.55% for the last twelve months as of Q1 2024, the company did experience a positive quarterly revenue growth of 25.85% in Q1 2024, indicating a potential turnaround or seasonal strength in their business model.
The company's gross profit margin stands at a robust 74.13%, which suggests that Upstart is efficient in its operations, albeit the company's adjusted operating income margin of -26.64% raises concerns about its profitability in the same period. An InvestingPro Tip worth noting is that analysts do not anticipate the company will be profitable this year, which aligns with the reported negative earnings metrics such as a P/E ratio of -12.73 and an adjusted P/E ratio of -14.08 for the last twelve months as of Q1 2024.
Another InvestingPro Tip that investors should consider is the stock's volatility. Upstart's stock price movements have been quite volatile, with a one-month price total return of 13.62% as of the 137th day of 2024, which could be appealing for traders looking for short-term gains but may also imply higher risk for long-term investors. For those interested in diving deeper into Upstart's financials and stock performance, there are additional InvestingPro Tips available, which can be accessed with an exclusive offer. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing more insights that could guide investment decisions.
It's important to keep in mind that Upstart's recent insider transactions, particularly the sales by CTO Paul Gu, may influence investor sentiment. While insider sales are not always indicative of a company's health, they can impact how potential and current investors view the stock's future. With this in mind, the additional 6 InvestingPro Tips available could offer valuable context and help investors make more informed decisions.
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