Bank Julius Baer & Co. Ltd Zurich, a prominent institutional investor based in Switzerland, has significantly increased its position in Upstart Holdings, Inc. (NASDAQ:UPST) during the second quarter of this year, according to the company’s recent filing with the Securities and Exchange Commission (SEC). The filing reveals that Bank Julius Baer now owns a staggering 50,939,090 shares of Upstart, representing an increase of 104,187.2% from its previous holdings. This move by Bank Julius Baer brings its ownership stake in Upstart to approximately 61.62%, reflecting a significant investment worth $1,824,129,000.
Upstart is a technology-driven lending platform that utilizes artificial intelligence and machine learning algorithms to efficiently connect borrowers with lenders. The company aims to revolutionize the traditional lending industry by leveraging innovative data analysis techniques to provide better credit access and loan underwriting for individuals and small businesses.
In terms of financial performance, Upstart recently announced its earnings results for the latest quarter on August 8th. Despite initial concerns from analysts, the company reported earnings per share (EPS) of ($0.34), which surpassed consensus estimates by $0.15. Additionally, Upstart generated revenue amounting to $135.77 million during the quarter—an impressive figure that exceeded analyst predictions of $133.91 million.
However, it is important to note that despite these positive outcomes on earnings and revenue fronts, Upstart still faced challenges such as a negative return on equity of 38.15% and a negative net margin of 49.54%. These figures suggest that the company continues to navigate through certain profitability hurdles as it seeks long-term success.
Equities research analysts have offered their insights on Upstart’s future prospects and anticipate that the company will post -2.41 EPS for the current year. These forecasts demonstrate cautious optimism regarding Upstart’s ability to overcome its current financial setbacks and achieve profitability in the coming years.
As investors and market observers closely monitor Upstart’s progress, it is evident that the company has gained attention from institutional players like Bank Julius Baer & Co. Ltd Zurich. Such a significant increase in ownership stake indicates their confidence in Upstart’s potential for growth and success within the lending industry.
In conclusion, Bank Julius Baer & Co. Ltd Zurich’s notable increase in its holdings of Upstart showcases its faith in the company’s trajectory. While Upstart faces challenges on its path to profitability, positive earnings results and a growing reputation within the lending sector indicate that the company has captured the interest of investors seeking opportunities in innovative fintech solutions. Moving forward, market watchers will continue to monitor Upstart’s performance as it strives to establish itself as a key player in the evolving world of online lending.
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Upstart Holdings, Inc. Sees Institutional Investor Activity and Mixed Analyst Ratings
October 2, 2023 – Upstart Holdings, Inc. (NASDAQ:UPST) has seen a series of modifications to its holdings by institutional investors in recent months. WMG Financial Advisors LLC increased its stake in the company by 0.9% during the first quarter, bringing its total ownership to 82,430 shares with a value of $1,311,000. Retireful LLC also entered the scene in the second quarter by purchasing a new position valued at $1,753,000. Tradition Wealth Management LLC experienced a significant surge in their position during the first quarter, upping their ownership to 3,818 shares valued at $61,000 after acquiring an additional 3,465 shares. Raymond James Financial Services Advisors Inc. followed suit with a 32.8% increase in their position during the first quarter and now owns 37,514 shares worth $596,000. Lastly, Valeo Financial Advisors LLC boosted their position by 10.2% during the first quarter and now holds 14,201 shares worth $226,000. Collectively, institutional investors and hedge funds collectively own 42.50% of Upstart Holdings’ stock.
Shares of Upstart opened at $28.54 on Monday and boast a market capitalization of $2.39 billion with a price-to-earnings ratio of -8.70 and a beta of 2.04—a perplexing combination that is bound to pique investor curiosity. Over the past year, Upstart’s stock has ranged from a low of $11.93 to a high of $72.58—an impressive degree of volatility.
In CEO Dave Girouard’s recent transaction on August 22nd, he sold 3,620 shares of Upstart stock for an average price of $32.64 per share—a total value of approximately $118,156.80 EFI standard may require changing as well because of slight changes in numbers . This reduced his stake to 76,293 shares worth $2,490,203.52. Similarly, insider Scott Darling sold 1,000 shares on September 25th at an average price of $26.58 per share for a total value of $26,580.00. He now holds 183,588 shares valued at approximately $4,879,769.04.
Furthermore, insiders have been active with Upstart’s stock. Over the past 90 days, they have collectively sold 82,263 shares worth $2,727,811—equivalent to 18.45% of the company’s stock being owned by corporate insiders.
Several equities research analysts have offered their insights on Upstart Holdings as well. Barclays increased their target price from $17.00 to $31.00 and assigned an “equal weight” rating in a research report on August 14th. Piper Sandler reiterated a “neutral” rating with a price objective of $35.00 on September 11th. Meanwhile, 22nd Century Group reaffirmed its “initiates” rating on June 14th for Upstart’s shares. JPMorgan Chase & Co., however, downgraded the stock to an “underweight” rating and raised their target price from $23.00 to $28.00 on August 22nd.
In conclusion , even though five investment analysts have rated the stock as a sell , four rated hold and two rated buy– it is important to note that Bloomberg reports the consensus rating as “Hold” with a consensus target price of $25.92—highlighting the diverse range of opinions surrounding Upstart Holdings’ future prospects.
This bewildering mixture of institutional investor modifications and perplexing analyst ratings makes for an interesting landscape in which Upstart Holdings finds itself navigating towards its path of success and profitability.
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