Paul Gu, the Chief Technology Officer of Upstart (NASDAQ:UPST) Holdings, Inc. (NASDAQ:UPST), has recently sold shares of the company in a series of transactions. According to the latest filings, Gu sold a total of 25,864 shares of common stock in two separate transactions on August 19 and 20.
On August 19, Gu sold 10,000 shares at an average price of $40.0072, totaling approximately $400,072. The following day, an additional 15,864 shares were sold in multiple transactions at prices ranging from $38.3069 to $38.93, for a total of about $615,486. These sales were reportedly made to cover tax withholding obligations related to the vesting of restricted stock units (RSUs).
In addition to the sales, Gu also exercised options to acquire 10,000 shares of Upstart Holdings' common stock at a price of $1.17 per share, amounting to a total transaction value of $11,700. It should be noted that these shares were fully vested and exercisable at the time of the transaction, as detailed in the footnotes of the filing.
Following these transactions, Gu's ownership in the company has been adjusted to reflect the new total of shares held. The sales were executed in accordance with a Rule 10b5-1 trading plan, which was previously adopted on February 29, 2024.
Investors and market watchers often pay close attention to insider transactions as they can provide insights into the executives' perspectives on their company's stock. Upstart Holdings, based in San Mateo, California, operates in the financial services sector and specializes in lending technology.
For further details or full information regarding the number of shares sold at each separate price, interested parties can request it from the issuer, security holder, or the Securities and Exchange Commission, as stated in the footnotes of the filing.
In other recent news, AMOCO Federal Credit Union has partnered with Upstart, a leading AI lending marketplace, to offer AI-driven loans. This collaboration, which began in March 2023, aims to provide an efficient lending experience to AMOCO's members and the wider community. Upstart's platform supports various loan types, including personal, automotive, and small-dollar relief loans, with a high rate of instant approvals and minimal documentation requirements.
Additionally, Upstart Holdings, Inc. reported its Q2 2024 financial outcomes, highlighting a move towards EBITDA profitability despite a 9% year-over-year decline in fee revenue to $131 million. The company has launched a new credit pricing model, M18, expanded its product offerings, and signed eight new lenders, creating a competitive environment that has led to lower loan prices for borrowers. Upstart projects positive adjusted EBITDA in Q4 2024 and forecasts 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. The company's focus on technology and model improvements, along with a balanced approach to employee compensation, positions Upstart for continued progress in transforming the credit industry with AI.
InvestingPro Insights
Amidst the recent insider transactions by Upstart Holdings, Inc.'s (NASDAQ:UPST) CTO Paul Gu, investors might be looking for additional context on the company's financial health and market performance. According to InvestingPro, Upstart has been experiencing significant price volatility, with analysts noting the stock's high price swings. This aligns with the recent share sales and could be indicative of the company's dynamic market position.
InvestingPro data shows Upstart with a market capitalization of $3.64 billion and a negative Price/Earnings (P/E) ratio of -17.32, reflecting market sentiment that the company is not expected to be profitable within this year. The company's Price/Book ratio stands at 6.12, which is considered high, suggesting that the stock might be trading at a premium relative to its book value.
Despite the challenges, Upstart has demonstrated strong recent returns, with a one-month price total return of 38.11% and a three-month return of 55.38%, showcasing a robust short-term performance that may capture investor interest. Additionally, an InvestingPro Tip highlights that Upstart's liquid assets exceed its short-term obligations, providing some financial stability in the near term.
For investors seeking a deeper dive into Upstart's financials and market trends, there are additional InvestingPro Tips available, offering a comprehensive analysis of the company's performance and future outlook. Visit https://www.investing.com/pro/UPST for more detailed insights and tips.
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