Upstart (NASDAQ:UPST) Shares Gap Up After Analyst Upgrade

Upstart Holdings, Inc. (NASDAQ:UPST) gapped up before the market opened on Wednesday after Needham & Company LLC raised their price target on the stock from $40.00 to $42.00. The stock had previously closed at $30.32, but opened at $34.60. Needham & Company LLC currently has a buy rating on the stock. Upstart shares last traded at $32.68, with a volume of 3,254,777 shares.

A number of other brokerages have also issued reports on UPST. Wall Street Zen lowered shares of Upstart from a “hold” rating to a “sell” rating in a research report on Saturday, June 27th. BTIG Research reissued a “buy” rating and set a $43.00 price target on shares of Upstart in a research note on Wednesday. Jefferies Financial Group restated a “hold” rating and set a $30.00 price objective on shares of Upstart in a report on Tuesday, June 9th. The Goldman Sachs Group increased their target price on Upstart from $32.00 to $39.00 and gave the stock a “neutral” rating in a research report on Thursday, July 9th. Finally, Citigroup decreased their price target on Upstart from $80.00 to $61.00 and set a “buy” rating on the stock in a research note on Wednesday, July 22nd. Eight investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $44.40.

Insider Activity at Upstart

In other Upstart news, insider Sanjay Datta sold 15,000 shares of the business’s stock in a transaction dated Tuesday, June 9th. The stock was sold at an average price of $30.41, for a total transaction of $456,150.00. Following the completion of the sale, the insider owned 313,556 shares of the company’s stock, valued at approximately $9,535,237.96. The trade was a 4.57% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Dave Girouard bought 170,240 shares of the firm’s stock in a transaction dated Thursday, May 7th. The shares were purchased at an average price of $29.37 per share, with a total value of $4,999,948.80. Following the acquisition, the director directly owned 8,512,941 shares in the company, valued at approximately $250,025,077.17. This trade represents a 2.04% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last three months, insiders sold 33,346 shares of company stock worth $991,672. 17.29% of the stock is owned by corporate insiders.

Upstart News Roundup

Here are the key news stories impacting Upstart this week:

• Positive Sentiment: Upstart reported approximately $365 million in second-quarter revenue, up 42% year over year and above the roughly $352 million consensus estimate. The company also delivered 50% year-over-year growth in loan originations and record contribution profit. Upstart Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management reaffirmed full-year 2026 revenue guidance of approximately $1.4 billion and emphasized stronger funding momentum, including more than $4 billion in newly committed capital. These developments could support originations and reduce concerns about Upstart’s access to lending capital. Upstart Q2 Earnings Call Highlights
• Positive Sentiment: Analysts raised their expectations following the results. Piper Sandler increased its price target from $46 to $51 and initiated an “overweight” rating, while Needham raised its target from $40 to $42 and assigned a “buy” rating. BTIG reaffirmed “buy” with a $43 target. At approximately $34.38, these targets imply potential upside of about 22% to 48%. Analyst Rating and Price Target Updates
• Positive Sentiment: Investors are also responding to Upstart’s upgraded AI lending model and the company’s conditional regulatory approval to establish Upstart Bank, which management says could simplify its operating and regulatory structure.
• Neutral Sentiment: The earnings coverage contains inconsistent EPS figures: some reports cite adjusted earnings of $0.59 per share versus a $0.58 estimate, while another summary cites $0.16 versus a $0.19 estimate. Investors may focus more closely on the company’s reconciliation of these measures and the quality of its profitability. Upstart Q2 Earnings Call Transcript
• Negative Sentiment: Macro and credit-market headwinds remain risks, and insider activity has been weighted toward selling, with 18 insider sales versus three purchases during the past six months. Institutional positioning was also mixed, with several large holders reducing stakes.

Hedge Funds Weigh In On Upstart

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Handelsbanken Fonder AB increased its holdings in Upstart by 16.4% in the 2nd quarter. Handelsbanken Fonder AB now owns 27,700 shares of the company’s stock valued at $981,000 after purchasing an additional 3,900 shares in the last quarter. Versant Capital Management Inc lifted its stake in shares of Upstart by 26.7% during the second quarter. Versant Capital Management Inc now owns 2,905 shares of the company’s stock worth $103,000 after purchasing an additional 612 shares in the last quarter. Janus Henderson Group PLC lifted its stake in shares of Upstart by 15.1% during the first quarter. Janus Henderson Group PLC now owns 24,722 shares of the company’s stock worth $634,000 after purchasing an additional 3,241 shares in the last quarter. Altshuler Shaham Ltd boosted its position in shares of Upstart by 40.0% in the first quarter. Altshuler Shaham Ltd now owns 37,800 shares of the company’s stock worth $970,000 after buying an additional 10,800 shares during the period. Finally, California State Teachers Retirement System boosted its position in shares of Upstart by 21.3% in the first quarter. California State Teachers Retirement System now owns 100,693 shares of the company’s stock worth $2,583,000 after buying an additional 17,675 shares during the period. Institutional investors and hedge funds own 63.01% of the company’s stock.

Upstart Stock Up 5.6%

The firm has a market cap of $3.06 billion, a price-to-earnings ratio of 84.26, a price-to-earnings-growth ratio of 0.78 and a beta of 2.29. The business has a 50 day moving average price of $31.31 and a 200-day moving average price of $31.58.

Upstart (NASDAQ:UPST) last released its quarterly earnings results on Tuesday, August 4th. The company reported $0.16 earnings per share for the quarter, missing analysts’ consensus estimates of $0.19 by ($0.03). The company had revenue of $364.71 million during the quarter, compared to analysts’ expectations of $352.29 million. Upstart had a return on equity of 5.63% and a net margin of 4.34%.The firm’s revenue was up 41.9% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.36 EPS. Research analysts anticipate that Upstart Holdings, Inc. will post 0.92 earnings per share for the current fiscal year.

About Upstart

Upstart Holdings, Inc operates a cloud-based lending marketplace that leverages artificial intelligence and machine learning to assess borrower creditworthiness. The company partners with banks and credit unions, providing its proprietary AI models and underwriting platform to facilitate consumer credit products. By focusing on non?traditional data points—such as education, employment history and other real?time indicators—Upstart seeks to improve approval rates and lower loss rates compared with conventional credit scoring methods.

Upstart’s core offering centers on unsecured personal loans, which borrowers can use for purposes such as debt consolidation, home improvements or major purchases.