SAN MATEO, Calif.—Cooper Kerry Whorton, a director at Upstart Holdings, Inc. (NASDAQ:UPST), has reported the sale of 500 shares of common stock. The shares were sold at a price of $74.59 each, amounting to a total transaction value of $37,295. This sale was conducted under a Rule 10b5-1 trading plan that Whorton adopted on August 29, 2024. The transaction comes as Upstart, now valued at $6.8 billion, has seen its stock surge nearly 197% over the past six months, according to InvestingPro data.
Following the transaction, Whorton holds 17,961 shares indirectly through the Edward and Kerry Cooper Living Trust, where she and her spouse serve as co-trustees. Additionally, Whorton has 8,278 restricted stock units (RSUs), which represent a right to receive shares of common stock upon meeting certain vesting conditions. InvestingPro analysis suggests the stock is currently overvalued, with 12 additional exclusive insights available to subscribers. Get access to the full Pro Research Report for comprehensive analysis of UPST's valuation and growth prospects.
In other recent news, Upstart Holdings Inc (NASDAQ:UPST). has been in the spotlight due to a series of significant developments. The company has experienced a series of changes in stock ratings, with Redburn-Atlantic upgrading its rating from Neutral to Buy and JPMorgan (NYSE:JPM) downgrading it from Neutral to Underweight. BTIG also shifted its rating from Sell to Neutral, acknowledging an increase in Upstart's stock value.
Upstart's recent financial performance indicates a promising trajectory. The company reported a robust third quarter with a 43% sequential increase in lending volume and a significant rise in revenue. Despite a GAAP net loss of $7 million, Upstart projects total Q4 revenues of approximately $180 million and an adjusted EBITDA of $5 million.
The company has also announced plans for a private offering of $425 million in Convertible Senior Notes due 2030, aimed at qualified institutional buyers. The proceeds from this offering will be used for general corporate purposes, potentially including repaying or retiring existing debt.
Mizuho (NYSE:MFG) analysts have raised the price target for Upstart to $90 from the previous $48, maintaining an Outperform rating on the stock. This adjustment follows Upstart's positive performance in the third quarter and the company's increased fourth-quarter guidance. Meanwhile, Redburn-Atlantic sees potential for Upstart's share price to exceed $250 over the next five years, driven by its powerful blend of AI and scalable technology platform.
Upstart's expansion into the auto loan and home equity line of credit (HELOC) markets has shown promising results, with the HELOC business doubling and auto loan originations increasing by 46%. The company also secured a strategic partnership with Blue Owl, securing up to $2 billion in loan purchases over the next 18 months. These developments underscore Upstart's ongoing commitment to growth in the lending sector.
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