Why is Upstart failing?

Asked by: Jovan Denesik  |  Last update: February 15, 2024
Score: 4.4/5 (50 votes)

Upstart had been reporting explosive growth and high profitability prior to inflation and the ensuing high interest rates, but that fell off a cliff when demand for loans fell and higher default rates spooked lenders.

Why is Upstart doing so bad?

One of the biggest factors that weighed on Upstart over the past couple of years is the quickly rising interest rate environment. As rates increase, the spread between what a bank pays depositors and what it earns from loans shrinks, eating into profit margins.

Does Upstart stock have a future?

Future Growth

Upstart Holdings is forecast to grow earnings and revenue by 64.7% and 20.3% per annum respectively. EPS is expected to grow by 67.3% per annum. Return on equity is forecast to be 8.6% in 3 years.

Is UPST a good long term investment?

The financial health and growth prospects of UPST, demonstrate its potential to underperform the market. It currently has a Growth Score of C. Recent price changes and earnings estimate revisions indicate this would not be a good stock for momentum investors with a Momentum Score of D.

What is Upstart stock price prediction 2025?

Upstart Holdings Stock Prediction 2025

The Upstart Holdings stock prediction for 2025 is currently $ 65.53, assuming that Upstart Holdings shares will continue growing at the average yearly rate as they did in the last 10 years. This would represent a 84.37% increase in the UPST stock price.

Was Upstart's Quarter a Disaster? | UPST q2 2023 earnings call analysis

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What are analysts saying about upstart stock?

Based on analysts offering 12 month price targets for UPST in the last 3 months. The average price target is $24.33 with a high estimate of $42 and a low estimate of $9.

Is upstart a buy sell or hold?

Upstart Holdings stock has received a consensus rating of sell. The average rating score is and is based on 9 buy ratings, 23 hold ratings, and 40 sell ratings. What was the 52-week low for Upstart Holdings stock?

Will Upstart stock go back up?

There are reasons to envision Upstart rebounding in the coming year. It's still recruiting credit partners, having grown from 10 at the initial public offering to 100 at the end of the 2023 third quarter. It's also adding auto loan business partners. Expect those numbers to keep rising in a year from now.

Should I hold Upstart stock?

UPST Stock Forecast FAQ

Currently there's no upside potential for UPST, based on the analysts' average price target. Is UPST a Buy, Sell or Hold? Upstart Holdings has a conensus rating of Moderate Sell which is based on 1 buy ratings, 4 hold ratings and 5 sell ratings.

Is Upstart a risky investment?

Upstart HoldingsInc has a volatility of 6.27 and is 9.5 times more volatile than NYSE Composite. 55 of all equities and portfolios are less risky than Upstart HoldingsInc.

Who owns the most Upstart stock?

According to the latest TipRanks data, approximately 25.94% of Upstart Holdings (UPST) stock is held by retail investors. Who owns the most shares of Upstart Holdings (UPST)? JANUS INVESTMENT FUND owns the most shares of Upstart Holdings (UPST).

What is the outlook for Upstart company?

Upstart Holdings Inc (NASDAQ:UPST)

The 15 analysts offering 12-month price forecasts for Upstart Holdings Inc have a median target of 23.00, with a high estimate of 42.00 and a low estimate of 6.00. The median estimate represents a -35.43% decrease from the last price of 35.62.

Is Upstart in trouble?

In the past year or so, Upstart has reported sharp revenue declines and net losses. While it tries to get itself back together and wait for interest rates cuts, you might want to consider other financial sector stocks that are demonstrating growth and resilience despite the economic climate.

Why is Upstart being sued?

The Company and certain of its executives have been sued in a securities class action lawsuit, charging them with failing to disclose material information during the Class Period, violating federal securities laws.

What is Zacks rating for Upstart?

Right now, Upstart Holdings, Inc. possesses a Zacks Rank of #4 (Sell). From a valuation perspective, Upstart Holdings, Inc. is currently exchanging hands at a Forward P/E ratio of 447.52. This represents a premium compared to its industry's average Forward P/E of 27.92.

How do investors make their money from Upstart?

Our institutional investors and buyers that participate in our loan funding programs invest in Upstart-powered loans through whole loan purchases, purchases of pass-through certificates and investments in asset-backed securitizations.

Is Upstart Holdings a good company?

As of February 09, 2024, Upstart Holdings Inc had a $2.9 billion market capitalization, putting it in the 75th percentile of companies in the Consumer Lending industry. Upstart Holdings Inc does not have a meaningful P/E due to negative earnings over the last 12 trailing months.

Why Upstart stock is going up?

The artificial intelligence (AI)-based consumer lending company benefited from a more resilient performance from the economy than expected, an increasing premium on AI technology, and expectations that interest rates could start falling this year. A short squeeze also seemed to help drive the stock higher.

How many shares does Upstart have?

Share Statistics

UPST has 85.06 million shares outstanding.

What is the prediction for Tesla stock?

Average Price Target

Based on 34 Wall Street analysts offering 12 month price targets for Tesla in the last 3 months. The average price target is $220.26 with a high forecast of $345.00 and a low forecast of $23.53. The average price target represents a 17.08% change from the last price of $188.13.

How high will Affirm stock go?

The average price target for Affirm Holdings is $32.38. This is based on 17 Wall Streets Analysts 12-month price targets, issued in the past 3 months. The highest analyst price target is $65.00 ,the lowest forecast is $12.00. The average price target represents -26.51% Decrease from the current price of $44.06.

What is the technical analysis of Upstart Holdings?

Technical Analysis for Upstart Holdings Stock

Upstart Holdings 50-day simple moving average is 35.20 while UPST share price is 32.70, making it a Sell technically. UPST stock price is 32.70 and Upstart Holdings 200-day simple moving average is 32.35, creating a Buy signal.

What is a company called Upstart?

Upstart's (Nasdaq: UPST) mission is to enable effortless credit based on true risk. We are a leading artificial intelligence (AI) lending platform designed to improve access to affordable credit while reducing the risk and costs of lending for our bank partners.