Upstart Holdings Soars to 52-Week High Amid AI-Driven Lending Innovations

Upstart stock soars to 52-week high, hits $86.14 By Investing.com

Upstart Holdings Inc . (NASDAQ:UPST) stock has reached a remarkable milestone, soaring to a 52-week high of $86.14, with a market capitalization of $7.68 billion. According to InvestingPro analysis, the stock appears overvalued at current levels. This peak reflects a significant turnaround for the artificial intelligence lending platform, marking an 84.92% increase over the past year, with an impressive six-month return of 234%. Investors have shown renewed confidence in Upstart's innovative credit decision technology and its potential to disrupt traditional lending markets, despite the company's current unprofitable status. InvestingPro subscribers can access 13 additional key insights about UPST's financial health and growth prospects. The company's stock performance is particularly noteworthy given the broader economic challenges and market volatility, suggesting a strong investor belief in Upstart's growth trajectory and business model resilience. Revenue growth stands at 10.89% year-over-year, while the company maintains a healthy current ratio of 13.41, indicating strong liquidity position. In other recent news, Upstart Holdings has been making notable strides in its financial performance and market positioning. The company has recently received an upgrade from Needham, setting a new price target at $100, reflecting confidence in Upstart's growth potential. Concurrently, Redburn-Atlantic has also upgraded Upstart's stock, adjusting the company's share price target to $95.00, a significant rise from the previous target of $37.00. Upstart has recently announced plans for a private offering of $425 million in Convertible Senior Notes due 2030, aimed at qualified institutional buyers. The proceeds from this offering will be used for general corporate purposes, potentially including repaying or retiring existing debt. The company has also secured a strategic partnership with Blue Owl, guaranteeing up to $2 billion in loan purchases over the next 18 months. The company has showcased a robust third quarter, with a 43% sequential increase in lending volume and a significant rise in revenue. Despite reporting a GAAP net loss of $7 million, Upstart projects total Q4 revenues of approximately $180 million and an adjusted EBITDA of $5 million. Upstart's expansion into the auto loan and home equity line of credit markets also yielded promising results, with the HELOC business doubling and auto loan originations increasing by 46%. On the analyst front, JPMorgan (NYSE:JPM) downgraded Upstart's stock from Neutral to Underweight, despite raising the price target to $57 from $45. Meanwhile, BTIG upgraded Upstart's stock rating from Sell to Neutral, acknowledging a significant increase in the company's stock value and the positive performance of Upstart's loan volumes. These recent developments underscore Upstart's ongoing commitment to growth in the lending sector.

Check Out What Whales Are Doing With UPST - Upstart Hldgs (NASDAQ:UPST)

Investors with a lot of money to spend have taken a bullish stance on Upstart Hldgs UPST. And retail traders should know. We noticed this today when the positions showed up on publicly available options history that we track here at Benzinga. Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with UPST, it often means somebody knows something is about to happen. Today, Benzinga's options scanner spotted 15 options trades for Upstart Hldgs. This isn't normal. The overall sentiment of these big-money traders is split between 46% bullish and 46%, bearish. Out of all of the options we uncovered, there was 1 put, for a total amount of $40,110, and 14, calls, for a total amount of $855,434. Projected Price Targets Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $77.5 to $100.0 for Upstart Hldgs during the past quarter. Volume & Open Interest Development Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Upstart Hldgs's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Upstart Hldgs's substantial trades, within a strike price spectrum from $77.5 to $100.0 over the preceding 30 days. Upstart Hldgs Call and Put Volume: 30-Day Overview Biggest Options Spotted: Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume UPST CALL SWEEP BEARISH 01/17/25 $4.45 $4.2 $4.2 $100.00 $373.4K 11.2K 42 UPST CALL SWEEP BEARISH 12/13/24 $3.95 $3.35 $3.95 $80.00 $79.5K 2.1K 345 UPST CALL SWEEP BEARISH 01/17/25 $7.05 $6.85 $6.85 $90.00 $47.9K 5.0K 391 UPST CALL TRADE BEARISH 12/27/24 $4.75 $4.6 $4.63 $85.00 $44.4K 1.2K 286 UPST PUT TRADE BULLISH 04/17/25 $19.25 $19.1 $19.1 $85.00 $40.1K 55 23 About Upstart Hldgs Upstart Holdings Inc provides credit services. The company provides a proprietary, cloud-based, artificial intelligence lending platform. The platform aggregates consumer demand for loans and connects it to the network of Upstart AI-enabled bank partners. Upstart's platform includes personal loans, automotive retail and refinance loans, home equity lines of credit and small dollar loans. Having examined the options trading patterns of Upstart Hldgs, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance Where Is Upstart Hldgs Standing Right Now? With a trading volume of 3,875,855, the price of UPST is up by 8.28%, reaching $83.46. Current RSI values indicate that the stock is may be approaching overbought. Next earnings report is scheduled for 60 days from now. What Analysts Are Saying About Upstart Hldgs Over the past month, 3 industry analysts have shared their insights on this stock, proposing an average target price of $84.0. Unusual Options Activity Detected: Smart Money on the Move Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access. * Showing optimism, an analyst from Needham upgrades its rating to Buy with a revised price target of $100. * An analyst from Redburn Atlantic upgraded its action to Buy with a price target of $95. * In a cautious move, an analyst from JP Morgan downgraded its rating to Underweight, setting a price target of $57. Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely. If you want to stay updated on the latest options trades for Upstart Hldgs, Benzinga Pro gives you real-time options trades alerts. Market News and Data brought to you by Benzinga APIs