Upstart holdings CTO sells shares worth over $258k By Investing.com

Upstart (NASDAQ:) Holdings, Inc. (NASDAQ:UPST) Chief Technology Officer, Paul Gu, has recently engaged in transactions involving the company’s stock, according to the latest SEC filings. On July 11, 2024, Gu sold 10,000 shares of Upstart at a weighted average price of $25.8765 per share, totaling over $258,765. The sales were executed in multiple transactions ranging from $25.59 to $26.15 per share.

In addition to the sale, the CTO also acquired 10,000 shares through option exercises on the same day at a price of $1.17 per share, amounting to a total of $11,700. It is important to note that these transactions were carried out under a prearranged trading plan set on February 29, 2024, known as a Rule 10b5-1 trading plan, which allows company insiders to establish predetermined trading arrangements for selling stocks at a later date.

Following these transactions, Gu’s direct ownership in Upstart Holdings has adjusted to 894,629 shares of common stock, not including the potential addition from any restricted stock units (RSUs) that may vest in the future. RSUs are typically subject to a vesting schedule and provide the right to receive shares of common stock once vested.

Investors and interested parties can obtain detailed information about the prices at which the shares were sold by reaching out to the issuer, security holders, or the SEC upon request. The reported transactions provide a glimpse into the trading activities of Upstart Holdings’ executives and may be of interest to current and potential shareholders monitoring insider trading patterns.

In other recent news, Castlelake, a private credit lender, has agreed to purchase consumer installment loans worth up to $1.2 billion from the fintech company, Upstart. This marks a significant step for investment firms venturing into areas traditionally occupied by banks. This acquisition follows a similar agreement between the two entities earlier this year, highlighting the growing reliance on alternative lending solutions facilitated by fintech innovations.

In recent developments, analysts from firms such as BTIG and Redburn-Atlantic have provided varied perspectives on Upstart’s future. BTIG initiated coverage on Upstart with a ‘Sell’ rating, expressing concerns about the company’s competitiveness in the credit underwriting market. On the other hand, Redburn-Atlantic upgraded Upstart from a ‘Sell’ to a ‘Neutral’ rating, recognizing positive developments within the company despite ongoing challenges.

Upstart’s Q1 results surpassed expectations, with an 18% year-over-year increase in revenue from fees. However, concerns persist over the company’s ability to maintain GAAP profitability through fluctuating credit and demand cycles. Upstart’s strategic initiatives, including the expansion into new asset classes like auto loans and home equity lines of credit, are key moves aimed at long-term growth. These are the recent developments in the company’s journey.

InvestingPro Insights

As Upstart Holdings (NASDAQ:UPST) sees its Chief Technology Officer, Paul Gu, actively managing his stake in the company, investors may be looking for additional context to understand the stock’s performance and future outlook. According to InvestingPro, the company has experienced significant return over the last week, month, and three months, with price total returns of 16.75%, 21.08%, and 23.56% respectively. Despite this recent positive performance, analysts have revised their earnings downwards for the upcoming period, and they do not anticipate the company will be profitable this year.

From a financial standpoint, Upstart’s market capitalization currently stands at $2.63 billion, reflecting the size and scale of the company in the financial technology sector. The P/E Ratio, which can provide insights into how the market values the company’s earnings, is negative at -14.61, indicating that the company is not currently profitable. Additionally, the company’s strong gross profit margin of 74.13% over the last twelve months as of Q1 2024 suggests that Upstart is effective at controlling its cost of goods sold and maintaining profitability at the operational level, even though it is facing challenges to its bottom line. However, it’s important to note that Upstart does not pay dividends, which may influence the investment strategy for income-focused investors.

For those considering diving deeper into Upstart’s financials and future prospects, there are additional InvestingPro Tips available that could provide further guidance. With the use of the promo code PRONEWS24, interested readers can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking access to a total of 9 additional tips on InvestingPro that could enhance their investment decisions.

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