Latest news with #Model19
Yahoo
17-04-2025
- Business
- Yahoo
Upstart Holdings (NasdaqGS:UPST) Partners With Credit Union To Enhance Loan Access
Upstart Holdings recently announced a partnership with First Commonwealth Federal Credit Union to enhance personal loan access for its members, marking a step in expanding its fintech services. Despite this positive alliance, the company's share price fell by 9% over the last week. During the same period, the broader market fell 3% amidst volatility driven by mixed economic signals and tech sector downturns. While the partnership aims to bolster Upstart's offerings and client base, it wasn't enough to counteract overall market declines, underscoring the influence of broader economic factors over individual corporate developments. Every company has risks, and we've spotted 2 weaknesses for Upstart Holdings you should know about. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. The recent partnership between Upstart Holdings and First Commonwealth Federal Credit Union could enhance the company's personal loan offerings, potentially improving future revenue and earnings forecasts. This strategic move strengthens Upstart's fintech capabilities and may impact Model 19's effectiveness in underwriting and funding. However, despite the partnership's potential, the short-term share price decline of 9% over the past week reflects broader market trends rather than company-specific issues. Over the past year, Upstart Holdings achieved a total return of 75.67%, highlighting significant longer-term performance relative to the market's volatile nature. Compared to the US Consumer Finance industry's 1-year return, Upstart exceeded its peers by a substantial margin, demonstrating robust resilience. Although the company is trading at a significant discount to the consensus analyst price target of US$79.00, its current share price around US$35.89 suggests potential upside according to analysts' expectations. Investors may need to consider the company's earnings projections and potential market conditions when evaluating the stock's alignment with its future fair value. The partnership could further solidify Upstart's revenue and earnings trajectory if it effectively addresses default risks and leverages expanded underwriting and funding capabilities. Dive into the specifics of Upstart Holdings here with our thorough balance sheet health report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:UPST. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
20-03-2025
- Yahoo
Charlotte man sentenced to 46 months after 2023 arrest in Statesville
A convicted felon from Charlotte has been sentenced to 46 months in prison for illegal possession of a firearm and machinegun, according to the office of the U.S. Attorney for the Western District in North Carolina. Trevaris Devar Kennedy, 21, was arrested by the Statesville Police Department in December of 2023. Authorities say Kennedy was a passenger in a car with an expired registration tag that sped away from police. The driver of the car led police on a foot chase. Two firearms were thrown from the car: a Glock, Model 19, 9mm, and a stolen Glock, Model 26, 9mm. Both of the guns were modified, officials say. A total of 55 rounds and mm9 ammunition were also found. ALSO READ: 5 charged with unlawful firearm possession in NC under Project Safe Neighborhoods Kennedy was arrested a month later on gun charges and police found videos and photos on his phone of him holding firearms that were also illegally modified. When he was arrested, Kennedy was already on probation for prior criminal convictions. He was not allowed to possess firearms or ammunition at the time, the U.S. Attorney's Office said. Kennedy is now in federal custody and will be transferred to the custody of the Federal Bureau of Prisons once he is designated for a federal facility. (WATCH BELOW: Woman accused of attacking flight attendant on flight to Charlotte)
Yahoo
12-02-2025
- Business
- Yahoo
Upstart Shares Surge 34% as AI-Driven Loan Growth Fuels Strong Q4
Upstart Holdings Inc. (UPST, Financials) shares soared 33.6% to $89.99 as of 3:05 p.m. ET on Wednesday, following the company's strong fourth-quarter results, which showcased AI-driven underwriting improvements and robust loan origination growth. Warning! GuruFocus has detected 4 Warning Signs with UPST. Driven by a 68% rise in loan origination volume, revenue grew 56% year over year to $219 million. Notable increases were seen in auto loans, HELOCs, and small-dollar relief loans; HELOC originations topped 1,000 loans with no defaults across 36 states. To further underwriting accuracy, the business has unveiled Model 19, which has an enhanced Payment Transition Model. From $1 million last quarter, Upstart recorded $39 million in adjusted EBITDA; its GAAP net loss dropped to $2.8 million. Thanks in part to better credit performance, net interest income went positive at $20 million. Supported by convertible debt, the company's financial sheet showed $806 million in loans down 28% year over year and $788 million in unrestricted cash. Upstart expects $1 billion in overall income for 2025; year-end GAAP profitability is projected. To help with its expansion, the business obtained a $150 million personal loan warehousing facility and $1.3 billion in capital commitments. Citing excellent finance availability and improved attitude, analysts voiced cautious optimism while highlighting questions about scalability, funding limits, and competition in the super-prime sector. Emphasizing a mixed approach between development and profitability, management showed more confidence than in Q3. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
12-02-2025
- Business
- Yahoo
Upstart Holdings Inc (UPST) Q4 2024 Earnings Call Highlights: Strong Revenue Growth and ...
Revenue: $219 million in Q4, up 56% year over year and 35% quarter on quarter. Revenue from Fees: $199 million, up 30% year over year and 19% sequentially. Net Interest Income: Approximately $20 million in Q4. Origination Volume: Grew 33% sequentially and 68% year over year. Adjusted EBITDA: $39 million in Q4, positive for the second consecutive quarter. GAAP Net Loss: $2.8 million in Q4. Contribution Margin: 61% in Q4, flat versus the prior quarter. Loan Transactions: Approximately 246,000, up 89% from the prior year and 31% sequentially. Average Loan Size: Approximately $8,580, up from $8,400 in the prior quarter. Unrestricted Cash Position: $788 million at year-end. Loans on Balance Sheet: $806 million at year-end, down 28% from the prior year. Full Year 2024 Net Revenue: Approximately $637 million, up 24% from 2023. Full Year 2024 Adjusted EBITDA: $10.6 million, representing a 2% adjusted EBITDA margin. Warning! GuruFocus has detected 3 Warning Sign with UPST. Release Date: February 11, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Upstart Holdings Inc (NASDAQ:UPST) reported a strong fourth quarter with a 33% increase in origination volume and a 35% increase in revenue sequentially. The company launched Model 19, which introduced the Payment Transition Model (PTM), enhancing model accuracy and risk separation. Upstart's auto refinance and HELOC products saw significant growth, with origination volumes increasing by approximately 60% sequentially. The company achieved a 25% sequential increase in the rate of delinquent borrowers making payments within 14 days of contact, demonstrating improved borrower outcomes. Upstart strengthened its balance sheet by refinancing convertible debt and raising almost $500 million, improving its cash position and liquidity. Despite improvements, Upstart Holdings Inc (NASDAQ:UPST) reported a GAAP net loss of $2.8 million for the fourth quarter. The company faces challenges in reducing the amount of loans held directly on its balance sheet, which rose sequentially in Q4. There is uncertainty regarding the macroeconomic environment, with potential rate increases posing a risk to future performance. The transition to one-year equity grants is expected to negatively impact stock-based compensation expenses. Upstart's contribution margin remained flat at 61% in Q4, indicating potential pressure on margins as the company scales. Q: How is Upstart thinking about the mix of funding moving forward, particularly between committed capital and other sources? A: Sanjay Datta, CFO, stated that the medium-term objective remains to have over 50% of capital committed, with the balance between bank and credit union balance sheet capital and at-will sources like ABS and hedge funds. In the short term, they are focusing on expanding borrower volumes and striking large deals with counterparties. Q: Can you break down what drove the upside in borrower demand this quarter? A: Sanjay Datta, CFO, explained that the increase in approvability and conversion was due to improvements in model accuracy, moderation in default rates, and the impact of rate cuts from last fall. These factors collectively contributed to lower APRs on the platform. Q: What is Upstart's view on risk retention in forming new sources of capital? A: Sanjay Datta, CFO, mentioned that Upstart maintains a target percentage of its platform underpinned by committed capital, with a single-digit percentage of total capital at risk from their balance sheet. There is an increasing appetite for risk in the securitization markets and loan asset purchasing. Q: How does Upstart plan to manage potential macroeconomic uncertainties in 2025? A: Dave Girouard, CEO, stated that Upstart takes a conservative position by not assuming changes in interest rates or the Upstart Macro Index (UMI). They build conservatism into their models to target modest overperformance if conditions remain stable, allowing for quick adjustments to any changes. Q: What are the main drivers of improved conversion rates, and how do these improvements affect loan buyers? A: Dave Girouard, CEO, highlighted that more accurate models and increased automation drive conversion improvements. Sanjay Datta, CFO, added that loan buyers are accustomed to Upstart's evolving models and that better models typically result in lower APRs for borrowers, rather than altering investor returns. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
