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Upstart Holdings CTO Paul Gu sells $6.08 million in stock

Published 04/12/2024, 21:14
UPST
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Paul Gu, the Chief Technology Officer of Upstart Holdings, Inc. (NASDAQ:UPST), has recently sold a significant portion of his common stock holdings in the company. According to a filing with the Securities and Exchange Commission, Gu sold shares worth approximately $6.08 million on December 2, 2024. The transaction comes as Upstart's stock has shown remarkable strength, with a 197% surge over the past six months and a market capitalization of $6.8 billion. According to InvestingPro analysis, the stock is currently trading above its Fair Value. The shares were sold in multiple transactions, with prices ranging from $67.70 to $75.26 per share.

In addition to the stock sales, Gu exercised stock options to acquire 87,600 shares at a price of $1.17 per share. Following these transactions, Gu holds 863,065 shares of Upstart Holdings.

The transactions were conducted under a pre-established Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined schedule for buying or selling stock. This plan was adopted by Gu on February 29, 2024.

In other recent news, Upstart Holdings Inc (NASDAQ:UPST). has seen significant developments. The company's shares received a rating upgrade from Redburn-Atlantic, shifting from Neutral to Buy, with a new price target of $95, a substantial increase from the previous $37. Seven analysts have revised their earnings estimates upward for the upcoming period, following strong performance by Upstart in the last two quarters.

In addition, Upstart announced plans for a private offering of $425 million in Convertible Senior Notes due 2030, aimed at qualified institutional buyers. The net proceeds from this offering will be used for general corporate purposes, potentially including repaying or retiring existing debt.

However, JPMorgan (NYSE:JPM) downgraded Upstart's stock from Neutral to Underweight, despite raising the price target to $57 from $45. This adjustment reflects expectations for improvements in the third-party funding environment by 2025.

Furthermore, Upstart showcased a robust third quarter with a 43% sequential increase in lending volume and a significant rise in revenue. The company's expansion into the auto loan and home equity line of credit (HELOC) markets yielded promising results, with the HELOC business doubling and auto loan originations increasing by 46%.

Lastly, BTIG upgraded Upstart's stock rating from Sell to Neutral, acknowledging a significant increase in the company's stock value and the positive performance of Upstart's loan volumes. These are the latest developments in Upstart's trajectory.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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