What Our Analysts Know About Upstart

Now trading at a price of $67.99, Upstart has moved -5.7% so far today.

Upstart returned gains of 134.0% last year, with its stock price reaching a high of $72.58 and a low of $11.93. Over the same period, the stock outperformed the S&P 500 index by 124.0%. More recently, the company's 50-day average price was $39.87. Upstart Holdings, Inc., together with its subsidiaries, operates a cloud-based artificial intelligence (AI) lending platform in the United States. Based in San Mateo, CA, the mid-cap Finance company has 1,875 full time employees. Upstart has not offered a dividend during the last year.

Growing Revenues With Increasing Reinvestment in the Business:

2021-02-12 2022-02-18 2023-02-16
Revenue (MM) $255 $822 $1,013
Interest Income (MM) -$8 -$3 -$11
Operating Margins 28.3% 30.2% 29.0%
Net Margins 2.35% 16.48% -10.73%
Net Income (MM) $6 $135 -$109
Depreciation & Amort. (MM) -$2 -$8 -$14
Earnings Per Share $0.07 $1.41 -$3.82
EPS Growth n/a 1914.29% -370.92%
Diluted Shares (MM) 91 96 83
Free Cash Flow (MM) $17 $177 -$666
Capital Expenditures (MM) -$1 -$8 -$9
Net Current Assets (MM) $153 $178 -$731
Current Ratio 3.48 5.47 3.02
Long Term Debt (MM) $63 $695 $986
LT Debt to Equity 0.21 0.86 1.47

Upstart has growing revenues and increasing reinvestment in the business and strong margins with a stable trend. Additionally, the company's financial statements display an excellent current ratio and low debt levels. However, the firm suffers from declining EPS growth and an unconvincing cash flow history.

Upstart does not have a meaningful trailing P/E ratio since its earnings per share are currently in the red. Based on its EPS guidance of $0.65, the company has a forward P/E ratio of 61.3. In comparison, the average P/E ratio for the Finance sector is 14.34. Furthermore, Upstart is likely overvalued compared to the book value of its equity, since its P/B ratio of 8.95 is higher than the sector average of 1.57.

Upstart Has an Average Rating of Sell:

The 14 analysts following Upstart have set target prices ranging from $6.0 to $72.0 per share, for an average of $22.93 with a underperform rating. As of April 2023, the company is trading 73.9% away from its average target price, indicating that there is an analyst belief that shares are overpriced.

Upstart has an unusually large proportion of its shares sold short because 36.2% of the company's shares are sold short. Institutions own 36.8% of the company's shares, and the insider ownership rate stands at 16.06%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 8% stake in the company is worth $436,181,876.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.