Upstart Holdings Inc. (UPST Stock)

The stock price of Upstart Holdings Inc. (NASDAQ: UPST) surged around 62% since the earnings were announced on May 9, 2023. It’s a leading fintech firm operating in the United States, which along with its subsidiaries, serves as a cloud-based AI lending platform. By mid-2022, Upstart lent $28.6 Billion, 75% of which was automated.

Upstart Holdings Inc. – Financial Analysis

The recent filings with the Securities and Exchange Commission (SEC) revealed that the California Public Employees Retirement System curtailed its holdings in Upstart Holdings Inc. by 17.7% in Q4 2022. They now own 124,335 shares after selling 26,664 shares. The retirement system owns around 0.15% of Upstart, worth $1.6 Million.

Other hedge funds and institutional investors have also adjusted their positions in the fintech company. Vanguard Group Inc increased its stake by 16.9% in Q1 2023. They now own 5,822,210 shares worth $635 Million after buying 840,668 shares.

BlackRock Inc. currently holds 2,355,881 shares worth $257 Million after purchasing 242,348 shares in Q1 2023. State Street Corp.’s holdings swelled by 36.6%; they now own 1,319,132 stocks worth $41.7 Million after buying 353,154 shares.

Northern Trust Corp also hiked its position by 26.4% and now owns 433,243 stocks in the company worth $47.2 Million after buying 90,383 shares. Lastly, Brainard Capital Management LLC purchased a position worth $5.17 Million in Q4 2022. Also, institutional investors own 37.43% of stocks.

The latest earnings were reported on May 9, 2023, with reported revenue of $102.927 Million, estimated at $99.72 Million. This brings the surprise of $3.203 Million and a gain of 3.21%. A scenario is causing a noticeable gap-up in the chart.

However, at press time, UPST stock closed 6.26% down on Friday at $23.05. Previous close and open were at $24.59 and $24.62, respectively. With an average volume of 8.44 Million shares, the market cap remains strong at $1.906 Billion. The 52-week change has been a fall of 45.05%. Analysts gave a 1.38 rating for Reduce, placing the price target at $17.73 with a 23.1% downside.

Considering March 2023 data, the revenue dropped 64.62% from Q1 2022 to $110.06 Million, while revenue for the trailing twelve months (ttm) is $625.25 Million. The revenue per share is $7.94, and the quarterly revenue growth is corrected by 64.60%. Operating expenses were reduced by 14.42% to $194.17 Million, and net income suffered a loss of 495.37% to minus $129.25 Million.

The net profit margin stumbled by $1217.41% to minus $117.44, and the gross profit remains at $665.29 Million. EPS fell by 117.05% to negative $0.47, and EBITDA was reported to be minus $246.34 Million. Total cash and debt were at $386.94 Million and $1.1 Billion, respectively. Moreover, the total debt/equity was 175.37.

Upstart Holdings Inc. – Candle Exploration

Positive earnings caused the rally, making UPST stock rise noticeably. If the trend continues and it crosses R1, the price action should continue the rally. But as RSI is in the overbought range of 53.25, the price could face rejection from R1. If it happened, it should find immediate resistance at $18.42.

The price shall consolidate within a range for some time before deciding further action. If the price drops below immediate resistance, it could test S1, but breaking it might be unlikely as it’s strong support.

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