Vanguard Group Inc. now owns 7,013,918 shares of the company’s stock valued at $286,589,000 after acquiring an additional 157,719 shares during the last quarter. Baader Bank Aktiengesellschaft raised its position in shares of Upstart by 273.8% in the second quarter. Baader Bank Aktiengesellschaft now owns 41,115 shares of the company’s stock valued at $969,000 after purchasing an additional 30,115 shares during the period. Finally, Apollon Wealth Management LLC raised its position in shares of Upstart by 30.4% in the fourth quarter.
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- This strategic alliance is expected to expand Upstart’s reach and enhance its service offerings, further boosting investor confidence.
- Upstart’s better-than-expected earnings led to a 20% share price increase, but its high debt and valuation make it a risky investment.
- According to 13 analysts, the average rating for UPST stock is “Sell.” The 12-month stock price forecast is $25.14, which is a decrease of -37.93% from the latest price.
- At more than 30%, the short interest in Upstart is the fifth-highest of any company with a market capitalization of more than $2 billion.
Apollon Wealth Management LLC now owns 12,590 shares of the company’s stock valued at $514,000 after purchasing an additional 2,938 shares during the period. 63.01% of the stock is currently owned by institutional investors and hedge funds. The December 2023 high just shy of $50 represents a 21.6% gain approximately from Wednesday’s closing price of $40.64.
Finally, Wedbush reaffirmed an “underperform” rating and set a $10.00 price target on shares of Upstart in a research note on Wednesday, August 7th. Five analysts have rated the stock with a sell rating, seven have issued a hold rating and one has assigned a buy rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $25.14. The price of Upstart has surged from its lows this year after management raised its Q3 guidance and touted a return to growth. With a lofty valuation at the company, there are risks to the growth potential. However, I believe that if the current upward trajectory remains, then the company could see a short squeeze due to the short interest in the stock.
Upstart Reported Strong Q2, But Analysts Are Concerned About Short Interest And Profitability – Here’s Why
It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. We’ve established that xcritical scammers Upstart Holdings maintains its high P/S on the strength of its forecasted revenue growth being higher than the the rest of the Consumer Finance industry, as expected. Right now shareholders are comfortable with the P/S as they are quite confident future revenues aren’t under threat. It’s hard to see the share price falling strongly in the near future under these circumstances.
Apparently shareholders aren’t keen to offload something that is potentially eyeing a more prosperous future. Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about. One positive from the Q2 earnings call was the news that the company had made progress on revamping its funding supply. By locking in long-term funding partnerships, the company can reduce the use of its balance sheet to fund loans.
Magnetar Financial LLC now owns 97,281 shares of the company’s stock valued at $2,616,000 after acquiring an additional 89,219 shares during the last quarter. Norges Bank acquired a new stake in Upstart in the fourth quarter valued at approximately $19,017,000. Vanguard Group Inc. lifted its stake in Upstart by 2.3% in the fourth quarter.
Short interest can add fuel to the recent rally
Upstart released its second-quarter earnings on August 6 and the stock surged after impressing analysts with raised guidance. Upstart’s Q1 earnings beat expectations on both the top and bottom lines. The company’s revenue base showed a solid 24% Y/Y growth in Q1. Personal loans, in both volume and transaction dollars, have s… Private credit lender Castlelake will buy up to $1.2 billion in consumer installment loans from fintech firm Upstart to expand its foothold in the retail lending space, it said on Thursday.
It has dropped by more than 34% this year while the Nasdaq 100 and S&P 500 indices have ris… Our new AI Stock xcritical Screener scans the market every day to uncover opportunities.
I will place a Hold on the company for that reason and if the stock price moves sharply higher, I would consider turning to a bearish tone. Recent improvements could fuel further gains, but there are economic clouds forming that add further risk. Upstart Holdings, Inc. engages in the provision of a cloud-based artificial intelligence lending platform. Its platform aggregates consumer demand for loans and connects it to the company’s network of artificial intelligence-enabled bank partners. The company was founded by David Joseph Girouard, Anna Mongayt Counselman and Paul Gu in December 2013 and is headquartered in San Mateo, CA.” With the Federal Reserve likely to take a measured approach to rate cuts, I believe Upstart deserves a chance to prove itself over the current quarter.
Perhaps the market is expecting future revenue performance to undergo a reversal of fortunes, which has elevated the P/S ratio. If not, then existing shareholders may be very nervous about the viability of the share price. The other issue would be economic as reduced U.S. interest rates could hurt margins and lending further. A low interest rate during the pandemic fueled a lending cycle that saw Upstart’s stock price surge from $44 in late 2020 to highs of almost $400 in October 2021. The resulting surge in inflation led to a sharp increase in interest rates. Despite a decline in inflation, the Federal Reserve may not move as quickly as investors wish on lowering rates.
The next significant level of resistance would come in at $72.50, which xcritical scammers marked the high in July 2023. If the company did see short squeeze occurring, it would have me looking to change my outlook from hold to sell as short interest reduces. Upstart’s better-than-expected earnings led to a 20% share price increase, but its high debt and valuation make it a risky investment. The company faces challenges with debt, stock volatility, and mac…
Upstart delivered solid Q2 earnings last week that included a strong Q3 revenue projection. Upstart also beat earnings estimates and saw double-digit Q/Q loan growth. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat’s editorial team prior to publication. Institutional investors have recently made changes to their positions in the stock. Magnetar Financial LLC lifted its stake in Upstart by 1,106.7% in the first quarter.