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Upstart Holdings: What You Need to Know Now

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Matt Monaco Fact-checked by Bryce Tuohey
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Upstart Holdings Inc. is under pressure amid challenges in the lending and macroeconomic environment, leading to a significant decline in stock value. On Thursday, Upstart Holdings Inc.’s stocks have been trading down by -4.34 percent.

Recent Developments and Market Reaction

  • On Feb 27, 2025, BofA made everyone sit up and take note when they increased the price target for Upstart Holdings to $53 from $39. Despite this, they retained an ‘Underperform’ rating, raising eyebrows on Wall Street.

Candlestick Chart

Live Update At 11:38:35 EST: On Thursday, March 13, 2025 Upstart Holdings Inc. stock [NASDAQ: UPST] is trending down by -4.34%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

  • Paul Gu, the mastermind behind Upstart Holdings’ technological strategies, just sold off 12,007 of his own shares for $948,826, raising a few eyebrows about the future direction of the company’s stock.

  • In a more recent turn of events, Upstart Holdings filled a SEC filing revealing an insider selling $1.1M in shares on Mar 5, 2025. Investors watch as this news ripples through the stock market.

Financial Performance Overview

When it comes to trading, patience and consistency are key. As millionaire penny stock trader and teacher Tim Sykes says, “Small gains add up over time; focus on building wealth gradually, not chasing jackpots.” This approach emphasizes the importance of making incremental profits rather than looking for quick, high-risk returns. By focusing on steady growth, traders can build a more stable and substantial financial foundation over the long run.

More Breaking News

In the most recent earnings report for Q4 2024, Upstart Holdings has shown a mixed bag of results. With an EBIT margin treading in negative territory at -9.5%, financial analysts have raised eyebrows and lowered their expectations. Despite a price-to-sales ratio of 9.49—revealing some market confidence—their leverage ratio stands at 3.7, hinting at some financial risk. The company continues to battle headwinds while holding a long-term debt of around $1.4B, re-calibrating amidst a challenging financial landscape. Some wonder if they should hold onto or sell, while others see potential in its narrative.

The Market’s Current Take:

  • Bank of America has adjusted its optimism slightly, increasing Upstart Holdings’s price target to $53 from $39. However, they caution investors with an “Underperform” rating, signaling a conflict between market hopes and their company’s valuation concerns.

  • In a noteworthy move, Upstart’s Director and CTO, Paul Gu, has dispensed with 12,007 shares, accumulating $948K in the process. Does this spark questions about the company’s future?

  • The Chief Legal Officer, Scott Darling, too, offloaded 4,794 shares, adding up to a worth of $378,934, suggesting internal uncertainty or strategic repositioning.

  • A recent SEC filing surprised some investors as it revealed that Upstart Holdings could issue various securities, which may dilute current shareholder value.

  • The CEO, Dave Girouard, added to the buzz by selling 4,524 shares for $357,444, adding to investor jitters about the future outlook of the company.

Analyzing Recent Performance of UPST

Upstart Holdings Inc. recently saw its stock close at $47.50. This reflects somewhat of a dip compared to the earlier days when prices of the UPST soared higher, reaching peaks near the $60 mark and facing a big drop by Mar 03, 2025, the stock price hovered around $55.48. But then chaos ensued as the company witnessed a cascade of insider selling, a sequence that stood out and left analysts bewildered. With the announcement of a potential issue of securities food for thought among stakeholders, questions about dilution began floating.

Yet, while these insider maneuvers sparked concerns, Bank of America’s decision to elevate Upstart’s price target to $53 has certainly added a new shimmer of hope despite their cautious stance. Remember, the stock has currently been trading below $50 marked with drop-offs, as of Mar 13, 2025.

Financial Overview

Taking a look back at the recent earnings report offers a better view. The earnings report for the period ending Dec 31, 2024 revealed some interesting patterns. Free cash flow was at -$110.93M, flagging a concerning cash deficit situation. This, combined with an EBIT margin of -9.5, means the company has had some challenges in turning profits recently.

However, BofA remains vigilant, seeing some improvements and slightly increasing the target price from $39 to $53. Is this the ray of optimism investors had been looking for? It just might shake things up for those who keep a close watch on market movements. Opportunities could be on the horizon.

The Road Ahead for Upstart Holdings

While insiders cash in on their stakes now, the questions left circling are painstaking. Will this movement persist, hinting at an underlying pressure pushing it up, or is it a bubble waiting to pop? Will patience pay off, or is the worst over? The decision is challenging with current circumstances casting a shadow of doubt. As the company attempts to navigate potential dilution, the actual market sentiment is yet to reveal itself in full clarity. For well-versed traders or new market entrants, understanding how earnings reports and insider activity play a significant role in stock movements could offer a strategic footing ahead of the market tide. As millionaire penny stock trader and teacher Tim Sykes, says, “The goal is not to win every trade but to protect your capital and keep moving forward.”

One memorable afternoon while walking my dog, I overheard a man comparing the current state of UPST stock to holding onto a balloon in a windstorm—capturing the unpredictable spirals many traders feel. With much at stake, this allegory could be valuable.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”