Latest news with #UPST
Yahoo
3 days ago
- Business
- Yahoo
Upstart (UPST) Slashes 7.7% on $500-Million Fundraising Program
We recently published . Upstart Holdings, Inc. (NASDAQ:UPST) is one of the best-performing stocks on Monday. Upstart Holdings dropped its share prices for a second day on Monday, shedding 7.71 percent to close at $63.46 apiece as investors soured on its plans to raise $500 million from the issuance of convertible senior notes. In a statement, Upstart Holdings, Inc. (NASDAQ:UPST) said that the notes will have a tenor of 7 years and will mature in 2032, unless earlier converted, repurchased, or redeemed. It also granted the initial buyers an option to purchase up to $75 million within a 13-day period beginning on the date the notes are first issued. The notes can be converted into cash or shares of its common stock, or they can prefer to convert into a combination of both. According to Upstart Holdings, Inc. (NASDAQ:UPST), proceeds from the offer will be used to pay the cost of the offering, as well as repurchase for cash a portion of its outstanding 0.25 percent Convertible Senior Notes due 2026. Photo by Clay Banks on Unsplash The balance will be allocated for general corporate purposes, which may include the repayment or retirement of existing debt, including the repurchase or retirement of the 2026 Notes. While we acknowledge the potential of UPST as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the .
Yahoo
3 days ago
- Business
- Yahoo
Upstart (UPST) Slashes 7.7% on $500-Million Fundraising Program
We recently published . Upstart Holdings, Inc. (NASDAQ:UPST) is one of the best-performing stocks on Monday. Upstart Holdings dropped its share prices for a second day on Monday, shedding 7.71 percent to close at $63.46 apiece as investors soured on its plans to raise $500 million from the issuance of convertible senior notes. In a statement, Upstart Holdings, Inc. (NASDAQ:UPST) said that the notes will have a tenor of 7 years and will mature in 2032, unless earlier converted, repurchased, or redeemed. It also granted the initial buyers an option to purchase up to $75 million within a 13-day period beginning on the date the notes are first issued. The notes can be converted into cash or shares of its common stock, or they can prefer to convert into a combination of both. According to Upstart Holdings, Inc. (NASDAQ:UPST), proceeds from the offer will be used to pay the cost of the offering, as well as repurchase for cash a portion of its outstanding 0.25 percent Convertible Senior Notes due 2026. Photo by Clay Banks on Unsplash The balance will be allocated for general corporate purposes, which may include the repayment or retirement of existing debt, including the repurchase or retirement of the 2026 Notes. While we acknowledge the potential of UPST as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . Sign in to access your portfolio
Yahoo
07-08-2025
- Business
- Yahoo
Upstart Holdings (UPST) Drops 18.7% After Earnings
We recently published . Upstart Holdings, Inc. (NASDAQ:UPST) is one of the worst-performing stocks on Wednesday. Upstart Holdings fell by 18.74 percent on Wednesday to close at $67.14 apiece as investors appeared to have already priced a strong earnings performance prior to the official release of its second quarter results, meriting a profit-taking. In its updated report, Upstart Holdings, Inc. (NASDAQ:UPST) said it swung to a net income of $5.6 million from a $54.5 million net loss in the same period last year. Revenues more than doubled to $257.29 million from $127.6 million year-on-year. In the first half, Upstart Holdings, Inc. (NASDAQ:UPST) posted a $3.16 million net income, reversing a $119.07 million net loss in the same period last year. Total revenues jumped by 84 percent to $470.66 million from $255 million. Following the results, Upstart Holdings, Inc. (NASDAQ:UPST) raised its full-year revenue guidance to $1.055 billion from $1.01 billion previously, as well as adjusted EBITDA to 20 percent versus 19 percent previously. Copyright: stokkete / 123RF Stock Photo In the third quarter, the company is gunning for a total revenue of $280 million, with revenues from fees expected to be at $275 million, while the rest is expected to come from net interest income. While we acknowledge the potential of UPST as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the .
Yahoo
05-08-2025
- Business
- Yahoo
Gear Up for Upstart (UPST) Q2 Earnings: Wall Street Estimates for Key Metrics
In its upcoming report, Upstart Holdings, Inc. (UPST) is predicted by Wall Street analysts to post quarterly earnings of $0.27 per share, reflecting an increase of 258.8% compared to the same period last year. Revenues are forecasted to be $225.3 million, representing a year-over-year increase of 76.5%. The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period. Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock. While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight. Given this perspective, it's time to examine the average forecasts of specific Upstart metrics that are routinely monitored and predicted by Wall Street analysts. The consensus among analysts is that 'Revenue- Revenue from fees, net' will reach $209.99 million. The estimate indicates a change of +60.9% from the prior-year quarter. The average prediction of analysts places 'Revenue- Revenue from fees, net- Servicing and other fees, net' at $38.80 million. The estimate points to a change of +21.5% from the year-ago quarter. The combined assessment of analysts suggests that 'Revenue- Revenue from fees, net- Platform and referral fees, net' will likely reach $172.09 million. The estimate suggests a change of +74.5% year over year. The consensus estimate for 'Transaction Volume' stands at $2.44 million. Compared to the current estimate, the company reported $1.11 million in the same quarter of the previous year. View all Key Company Metrics for Upstart here>>> Over the past month, shares of Upstart have returned +7.3% versus the Zacks S&P 500 composite's +0.6% change. Currently, UPST carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> . Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Upstart Holdings, Inc. (UPST) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
27-06-2025
- Business
- Yahoo
Upstart Stock Appreciates 40% QTD: Should You Take the Bait?
Upstart Holdings, Inc. UPST has delivered a strong gain of 40.1% so far in the quarter, significantly outperforming the Zacks Financial – Miscellaneous Services industry's 18.7% appreciation. In contrast to peers, such as LendingClub LC and Enova International ENVA, UPST has clearly emerged as one of the standout Holdings stands out for its disruptive business model and strategic growth initiatives, despite tackling economic headwinds and rising competition. UPST is reinventing consumer lending using artificial investors may be wondering if they've missed the investment opportunity or if there's still time to take a position. Let's explore further to determine whether it's wise to consider taking or increasing positions in UPST or waiting for a better entry point. Image Source: Zacks Investment Research Upstart is redefining credit underwriting through the application of artificial intelligence. At the core of its value proposition is a proprietary AI-based model that replaces the traditional FICO score with a more nuanced and predictive system, incorporating factors like education, employment history, and financial behavior. In first-quarter 2025, 92% of loans on its platform were fully automated, demonstrating unmatched efficiency and borrower experience. The company's superior automation rate, when combined with rising conversion rates (up from 14% to 19% YoY), underlines the tangible benefit of its model expansion beyond personal loans into verticals like auto refinancing, HELOCs, and small-dollar loans is paying off. Auto loan originations jumped 42% sequentially, HELOCs rose 52%, and small-dollar loans nearly tripled year over year. This diversification enhances revenue streams while enabling Upstart to test and fine-tune its AI model across product categories. Partnerships like the one with All In Credit Union also show Upstart's growing appeal among traditional lenders looking to reach more borrowers its focus on super-prime borrowers — now 32% of originations — reduces credit risk while increasing access to low-cost funding. Its marketplace model has diversified funding across banks, credit unions, and private credit providers, now with more than 50% of volume backed by committed AI innovation is a sustainable moat. Upstart integrated embeddings into its underwriting system — an advanced machine-learning method that transforms complex, unstructured data into actionable insights, enhancing the precision of credit evaluations. These embeddings enable the model to detect nuanced behavioral patterns among borrowers — for instance, recognizing relationships between different credit card types — thereby improving its ability to generalize and separate risk ahead, Upstart intends to debut its first machine-learning model for loan servicing, focused on boosting operational efficiency and lowering default rates, with the broader ambition of developing a distinctive, standalone servicing solution. However, challenges remain — elevated interest rates and a dip in contribution margins are notable. The growing super-prime borrower mix, while improving credit quality, also results in lower take rates due to intense competition. Moreover, margins in newer products like HELOC and auto lending are expected to mature over time, with initial take rates being modest due to early-stage scaling. Moreover, macroeconomic uncertainty and trade tensions add to the company's woes. The recent estimate revision trends do not provide a clear direction either. While the full-year 2025 consensus mark for EPS has been revised slightly downward over the past week, the same for 2026 has been adjusted above the prior projections. Image Source: Zacks Investment Research From a valuation perspective, we note that Upstart shares are currently overvalued, as suggested by the Value Score of terms of forward 12-month Price/Sales (P/S), Upstart is currently trading at 5.24X, which is at a premium to the industry average of 3.85X. Moreover, compared with major fintech rivals, the stock trades at a premium to LendingClub and Enova International. At present, LendingClub and Enova International have P/S multiples of 1.38X and 0.8X, respectively. Image Source: Zacks Investment Research While short-term macro risks remain, Upstart's differentiated technology, expanding loan mix, and improving profitability make it a compelling long-term fintech play. Investors seeking AI-driven disruption in consumer finance may find Upstart well worth the ride. However, it's also trading at a relatively high valuation. For now, holding the stock seems like the right move, especially if you have a longer investment horizon. Currently, Upstart Holdings carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Upstart Holdings, Inc. (UPST) : Free Stock Analysis Report LendingClub Corporation (LC) : Free Stock Analysis Report Enova International, Inc. (ENVA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
