Morgan Stanley Upgrades Upstart Holdings

On February 17, 2025, Morgan Stanley made a notable adjustment regarding Upstart (NASDAQ:UPST), moving their rating from underweight to equal weight. This change was detailed in a report released on Friday morning, as highlighted by MarketBeat.com. Morgan Stanley has set a new price target of $70.00 for Upstart, a significant increase from their earlier target of $12.00.

Other analysts have also assessed Upstart's stock recently. For instance, on February 12, JPMorgan Chase & Co. upgraded Upstart from an "underweight" rating to a "neutral" rating and raised their price target from $57.00 to $79.00. Meanwhile, Goldman Sachs updated their price target for Upstart from $13.50 to $15.00 but maintained a "sell" rating. Additionally, Bank of America increased their target from $33.00 to $39.00 while giving an "underperform" rating.

In another report, Citigroup lifted their price target for Upstart from $87.00 to $108.00, assigning a "neutral" rating. Similarly, Wedbush revised their price target from $60.00 to $75.00 with a "neutral" rating. Currently, the analyst community comprises two analysts with a sell rating, seven providing a hold rating, and five giving a buy rating. According to MarketBeat, Upstart has an overall consensus rating of “Hold” and a consensus price target of $68.92.

Current Performance and Financial Metrics

As of Friday, NASDAQ:UPST opened at $82.42. The company's fifty-day simple moving average stands at $68.10, while the two-hundred-day simple moving average is $55.61. Upstart boasts a market cap of $7.52 billion and has a price-to-earnings ratio of -42.70, accompanied by a beta of 2.25. The stock has shown considerable volatility, with a 52-week low of $20.60 and a high of $96.43.

The latest quarterly earnings, announced on February 11, revealed an earnings per share (EPS) of ($0.02), which exceeded analyst expectations of ($0.04) by $0.02. However, Upstart reported a negative net margin of 30.15% and a negative return on equity of 32.57%. Analysts project that the company will post an EPS of -2.18 for the current year.

Insider Actions

In addition to analyst actions, recent insider transactions have come to light. Chief Financial Officer Sanjay Datta disposed of 18,619 shares on November 20 at an average price of $69.82, culminating in a transaction total of $1,299,978.58. After this sale, Datta retains 310,974 shares valued at approximately $21,712,204.68, reflecting a 5.65% decrease in his holdings. This sale was reported to the Securities and Exchange Commission (SEC).

Moreover, Director Kerry Whorton Cooper sold 500 shares on December 2 at an average price of $74.59, totaling $37,295. Following this transaction, Cooper possesses 17,961 shares valued at $1,339,710.99, signifying a 2.71% decrease in ownership. In the last quarter alone, insiders sold 239,701 shares, amounting to $16,900,884, and insiders now hold 18.06% of the company's stock.

Institutional Investor Activity

Recent changes in institutional investments show increased interest in Upstart. For instance, Comerica Bank dramatically raised its stake in Upstart by 885.9% during the fourth quarter, acquiring 21,196 shares worth $1,305,000 after adding 19,046 shares. Voleon Capital Management LP also entered a new position valued at approximately $1,460,000.

Furthermore, Schonfeld Strategic Advisors LLC expanded its holdings in Upstart by 273.0%, owning 45,725 shares after purchasing an additional 33,465 shares during the same period. Northern Trust Corp. increased its stake by 16.2%, totaling 782,557 shares worth $48,182,000 after acquiring 109,164 shares. Lastly, Oxford Asset Management LLP acquired a stake valued around $518,000. Currently, institutional investors and hedge funds hold 63.01% of Upstart's stock.

About Upstart Holdings, Inc.

Upstart Holdings, Inc. operates an AI-based lending platform in the USA, providing various loan products including personal loans, automotive retail and refinance loans, home equity lines, and small dollar loans. The platform connects consumers' loan demands with suitable bank and credit union offerings.

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