SAN MATEO, CA - Upstart (NASDAQ:UPST) Holdings, Inc. (NASDAQ:UPST), a leading artificial intelligence lending platform, reported a significant stock transaction by one of its top executives. Natalia Mirgorodskaya, the company's Corporate Controller, sold 1,188 shares of common stock on May 20, 2024, for an average price of $25.6112, totaling approximately $30,426.
The shares were sold at prices ranging from $25.26 to $26.19, as detailed in the recent regulatory filing. The sale was executed to cover tax withholding obligations related to the vesting of restricted stock units (RSUs), a common practice among corporate executives.
Following this transaction, Mirgorodskaya continues to hold 27,977 shares of Upstart Holdings, which includes certain RSUs that represent a contingent right to receive additional shares of common stock upon vesting. The exact details of the transaction, including the number of shares sold at each price point within the given range, can be provided upon request to the issuer, any security holder of the issuer, or the staff of the Securities and Exchange Commission.
The transaction was signed off by Cynthia Moon, acting under power of attorney, on May 22, 2024. Upstart Holdings, with its headquarters located at 2950 S. Delaware Street, Suite 300, San Mateo, CA, specializes in finance services, leveraging artificial intelligence to improve access to affordable credit while reducing risks and costs for its banking partners.
Investors and market watchers often monitor insider transactions as they can provide insights into executives' perspectives on the company's stock value and future performance. However, such sales are routine and can be influenced by a variety of factors, including personal financial planning and diversification strategies.
InvestingPro Insights
As Upstart Holdings, Inc. (NASDAQ:UPST) continues to navigate the financial services industry with its AI-driven platform, recent market data and analyst insights from InvestingPro paint a detailed picture of the company's current standing. The market cap of Upstart stands at approximately $2.14 billion, reflecting the company's size and investor valuation in the market. However, the P/E ratio, both standard and adjusted for the last twelve months as of Q1 2024, remains negative at -11.77 and -12.18 respectively, indicating that investors are facing losses per share of stock held.
InvestingPro Tips highlight that the stock has seen significant volatility, with a notable decline over the past week, and analysts have revised their earnings expectations downwards for the upcoming period. This could be a signal to potential investors about the need for caution when considering this stock. Moreover, while Upstart's liquid assets surpass its short-term obligations, suggesting financial stability in the near term, analysts do not expect the company to be profitable this year.
Regarding performance metrics, Upstart's revenue for the last twelve months as of Q1 2024 stands at $576.9 million, with a gross profit margin of 74.13%, showcasing the company's ability to retain a substantial portion of its revenue after accounting for the cost of goods sold. Despite this strong profit margin, the company's revenue growth has declined by 11.55% over the same period. These figures underscore the challenges Upstart faces as it strives to translate its top-line revenue into sustainable profit.
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