UPST Stock Price Rose 5% Intraday; Loses 10% in 7 days

• Upstart acquired Prodigy Software Inc. for about $89 million in March 2021.
• Upstart Holdings released its last earnings report in February.

Upstart Holdings(Nasdaq: UPST) stock soared over 5% on Wednesday, March 29’s trading session. The 1-day trading range of UPST stock was between $13.21-$13.80. However, the stock closed at $13.74 with an average trading volume of 6.44 million.  

The yearly trading range of UPST stock is $13.21-$125.40. The company has a market capitalization of $1.12 billion.

Earlier on March 28, UPST stock completed its trading session and closed at $12.99, and in the same trading session, the stock’s highest traded price was $13.30 and the lowest traded price was $12.72.

Upstart Holdings’ financial reports surprised investors – the company reported excess revenue in the fourth quarter when compared with estimated figures. The estimated revenue for the fourth quarter was $133.61 million, but the reported revenue was $146.91 million or 9.96% more than the estimated revenue.

The company released its quarter four 2022 financial reports on February 14, 2023, and on February 15, 2023, trading session UPST stock soared over 28%. On February 15, 2023 trading session, the market opened at $18.51 and UPST stock highest traded at $21.97 and lowest traded at $18.20. 

UPST stock slipped 10.31% in a week and over 24% over a month. Although the stock has gained 10.18% in 3 months, in the last one year, the stock price descended by 87.73%.  

Upstart acquired Prodigy in March 2021 and invested in Tellar Finance during its venture funding round. Moreover, Upstart raised $144 million in seven different rounds, and The Progressive Corporation, Khosla Ventures, First Round Capital, First National Bank of Omaha, and several others majorly led the investment rounds.

Upstart Holdings primarily offers personal loans and advances to institutional investors. The increase in the cost of such loans (interest on the loan) is directly proportional to the Federal Reserve rates. The organization provides loans to near-prime borrowers. They may fall under financial crises in case of an economic recession in the country.

The Fed’s rapid rate hikes since the second half of 2022 affected the trading volume negatively. The company’s business has remained cyclic, which indicates more stock downfall. The Biden Administration’s push to forgive student loans may help the organization remain positive.

Major Technical Level 

Major Support: $15.82 and $13.21

Major Resistance: $24.28 and $26.89 

Disclaimer 

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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