Upstart Target of Unusually High Options Trading (NASDAQ:UPST)

Upstart Holdings, Inc. (NASDAQ:UPST) was the recipient of some unusual options trading on Wednesday. Stock traders purchased 56,434 call options on the company. This represents an increase of 36% compared to the average daily volume of 41,392 call options.

Upstart Stock Down 15.5%

Shares of Upstart stock opened at $32.91 on Thursday. The firm has a market cap of $3.20 billion, a price-to-earnings ratio of 78.35 and a beta of 2.38. Upstart has a 52-week low of $31.40 and a 52-week high of $96.43. The company’s 50-day simple moving average is $45.29 and its 200-day simple moving average is $52.76.

Upstart (NASDAQ:UPST) last posted its quarterly earnings results on Tuesday, February 10th. The company reported $0.17 earnings per share for the quarter, missing analysts’ consensus estimates of $0.47 by ($0.30). Upstart had a return on equity of 6.49% and a net margin of 5.13%.The company had revenue of $296.09 million for the quarter, compared to analyst estimates of $288.54 million. During the same period last year, the company earned $0.26 earnings per share. The business’s revenue for the quarter was up 35.2% compared to the same quarter last year. Equities research analysts anticipate that Upstart will post -0.03 EPS for the current year.

Insider Activity at Upstart

In related news, insider Natalia Mirgorodskaya sold 821 shares of the business’s stock in a transaction on Thursday, November 20th. The stock was sold at an average price of $36.62, for a total transaction of $30,065.02. Following the completion of the transaction, the insider directly owned 27,160 shares of the company’s stock, valued at $994,599.20. The trade was a 2.93% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Sanjay Datta sold 13,624 shares of the stock in a transaction dated Thursday, November 20th. The shares were sold at an average price of $36.58, for a total value of $498,365.92. Following the completion of the sale, the chief financial officer directly owned 284,280 shares in the company, valued at $10,398,962.40. This represents a 4.57% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 16,707 shares of company stock worth $633,080. Company insiders own 16.67% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in UPST. Clearstead Advisors LLC acquired a new stake in Upstart in the 3rd quarter worth about $25,000. Quarry LP boosted its position in shares of Upstart by 749.2% in the third quarter. Quarry LP now owns 501 shares of the company’s stock worth $25,000 after acquiring an additional 442 shares during the last quarter. Ameritas Advisory Services LLC purchased a new stake in Upstart in the second quarter valued at approximately $34,000. Bayforest Capital Ltd purchased a new stake in Upstart in the fourth quarter valued at approximately $25,000. Finally, Northwestern Mutual Wealth Management Co. increased its position in Upstart by 132.2% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 771 shares of the company’s stock worth $39,000 after purchasing an additional 439 shares during the last quarter. Hedge funds and other institutional investors own 63.01% of the company’s stock.

Analyst Ratings Changes

A number of equities research analysts have commented on the stock. Weiss Ratings reissued a “sell (d+)” rating on shares of Upstart in a research report on Monday, December 29th. Piper Sandler lowered their target price on shares of Upstart from $80.00 to $56.00 and set an “overweight” rating for the company in a research note on Wednesday, November 5th. Stephens cut their price target on Upstart from $55.00 to $40.00 and set an “equal weight” rating on the stock in a research note on Wednesday, November 5th. Needham & Company LLC reaffirmed a “buy” rating and set a $56.00 price target on shares of Upstart in a report on Wednesday. Finally, JPMorgan Chase & Co. dropped their price objective on Upstart from $88.00 to $65.00 and set an “overweight” rating on the stock in a report on Wednesday, November 5th. Five analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $54.90.

Key Upstart News

Here are the key news stories impacting Upstart this week:

• Positive Sentiment: Company raised 2026 revenue guidance above Street expectations, which initially pushed the stock higher as investors cheered better top-line visibility. Upstart shares soar 11% as 2026 revenue guidance tops estimates
• Positive Sentiment: Analyst support: Needham reaffirmed its “buy” rating and $56 price target, signaling confidence from some sell-side firms in Upside potential. Benzinga
• Neutral Sentiment: Q4 results were mixed — revenue grew strongly year-over-year and topped estimates, but adjusted EPS missed by a penny (reported around $0.46 vs. ~$0.47 consensus), creating ambiguity over profit trends. Upstart (UPST) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
• Neutral Sentiment: Options flows show elevated activity and conflicting positioning: heavy put buying ahead of earnings followed by a surge in call purchases the next day — a sign of heightened speculation and short-term hedging rather than clear directional conviction.
• Negative Sentiment: Management’s 2026 margin guidance disappointed investors, triggering downward pressure as the market parsed whether profitability will scale as revenue grows. Upstart Stock Slides as 2026 Margin Guidance Disappoints
• Negative Sentiment: Analysts and reporters flagged concerns that guidance raised questions about Upstart’s ability to execute funding and margin improvement, amplifying sell-side caution and intraday volatility. Upstart tumbles after guidance raises fears over funding execution
• Negative Sentiment: Market reaction included a sharp gap lower after the earnings/guide release and at least one firm (Truist) trimmed its price target, reflecting reduced near-term confidence despite retaining a “buy” stance. Upstart Stock Gaps Lower After Earnings Whiff UPST: Price target lowered at Truist

About Upstart

Upstart Holdings, Inc operates a cloud-based lending marketplace that leverages artificial intelligence and machine learning to assess borrower creditworthiness. The company partners with banks and credit unions, providing its proprietary AI models and underwriting platform to facilitate consumer credit products. By focusing on non‐traditional data points—such as education, employment history and other real‐time indicators—Upstart seeks to improve approval rates and lower loss rates compared with conventional credit scoring methods.

Upstart’s core offering centers on unsecured personal loans, which borrowers can use for purposes such as debt consolidation, home improvements or major purchases.