Sanjay Datta, the Chief Financial Officer of Upstart (NASDAQ:UPST) Holdings, Inc. (NASDAQ:UPST), has sold 1,500 shares of the company's common stock. The shares were sold at a price of $48.66 each, amounting to a total transaction value of $72,990. Following this sale, Datta retains ownership of 332,593 shares. The transaction was conducted under a pre-established Rule 10b5-1 trading plan, which Datta adopted on February 26, 2024.
In other recent news, Upstart Holdings has announced a series of significant developments. The company introduced its T-Prime lending program, targeting the "super prime" borrower segment in the United States, which includes nearly half of the American population with credit scores above 720. The company also secured a programmatic purchase commitment of up to $2 billion from Blue Owl Capital Inc. and announced a $300 million offering of Convertible Senior Notes due in 2029.
Mizuho (NYSE:MFG) Securities reaffirmed an Outperform rating on Upstart's shares, citing potential growth drivers such as the introduction of new products. BofA Securities, on the other hand, maintained an Underperform rating but increased its price target for Upstart.
In terms of financial performance, Upstart's loan volume and revenue growth are accelerating. The company anticipates total revenues of approximately $150 million for Q3 2024 and projects positive adjusted EBITDA in Q4 2024.
Additionally, Upstart has formed a strategic partnership with AMOCO Federal Credit Union to offer AI-driven loans, enhancing its lending capabilities. Despite a 9% year-over-year decline in fee revenue to $131 million, Upstart saw a 31% increase in loan transaction volume. These recent developments highlight Upstart's ongoing efforts to refine its AI-driven lending platform and move towards a more sustainable and diversified funding structure.
InvestingPro Insights
As Upstart's CFO Sanjay Datta reduces his stake in the company, investors might be interested in additional context provided by InvestingPro data. Upstart's market capitalization currently stands at $4.8 billion, reflecting the market's valuation of the company.
The company's stock has shown remarkable performance recently, with InvestingPro data indicating a strong 111.98% return over the last three months and a 72.7% return over the past year. This upward trend aligns with an InvestingPro Tip highlighting Upstart's "strong return over the last three months."
However, it's important to note that Upstart is currently not profitable, with a negative P/E ratio of -23.07. This is consistent with another InvestingPro Tip stating that "analysts do not anticipate the company will be profitable this year." Despite this, Upstart's revenue for the last twelve months as of Q2 2024 was $575.96 million, with a gross profit margin of 73.76%, indicating strong underlying business performance.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Upstart, providing a deeper understanding of the company's financial health and market position. These insights can be particularly valuable when interpreting insider transactions like Datta's recent stock sale.
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