Upstart (NASDAQ:UPST) Holdings, Inc. (NASDAQ:UPST) has reported a significant transaction involving Chief Technology Officer Paul Gu, who sold shares in the company valued at approximately $1.58 million. The sale took place on April 1, 2024, and was disclosed in a filing with the Securities and Exchange Commission (SEC).
According to the filing, Gu sold 60,000 shares of Upstart Holdings common stock at a weighted average price ranging from $26.07 to $26.87, with the total transaction amounting to $1,578,672. This sale was part of a pre-arranged Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell stocks at a time when they are not in possession of material non-public information.
Additionally, on the same day, Gu exercised options to buy 60,000 shares of common stock at a price of $0.60 per share, totaling $36,000. This transaction was also executed under the same Rule 10b5-1 trading plan. Following these transactions, Gu's direct holdings in Upstart have adjusted to a total of 893,596 shares of common stock.
Investors often monitor insider transactions as they can provide insights into how executives view the company's stock and its future prospects. Upstart Holdings, Inc., based in San Mateo, California, operates in the financial services sector and is incorporated in Delaware.
The company and its executives have not made any additional comments regarding the transaction. Interested parties can obtain full details of the share sales at each separate price upon request from the issuer, any security holder of the issuer, or the SEC staff, as indicated by the footnotes in the SEC filing.
InvestingPro Insights
Amidst the news of CTO Paul Gu's recent share sale, Upstart Holdings, Inc. (NASDAQ:UPST) has been a subject of close scrutiny in the investment community. The recent transactions coincide with a period marked by significant volatility in Upstart's stock price. According to InvestingPro data, the company has a current market capitalization of $2.27 billion, with a negative P/E ratio of -9.16, reflecting market skepticism about its near-term earnings potential.
Moreover, the company's stock has experienced a notable decline, with a 3-month price total return of -26.06%. This aligns with an InvestingPro Tip that highlights the stock's substantial hit over the last week and its high price volatility in general. Additionally, the company's revenue has seen a decrease of -35.72% over the last twelve months as of Q1 2023, which may contribute to the analysts' view, as indicated by another InvestingPro Tip, that the company is not expected to be profitable this year.
Investors considering Upstart Holdings as part of their portfolio should note that the company does not pay dividends, which could be a significant factor for those seeking regular income streams from their investments. For those looking for more in-depth analysis, there are 9 additional InvestingPro Tips available that could provide further guidance on the company's financial health and stock performance. To explore these insights and make informed investment decisions, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.