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

Upstart Holdings, Inc. (NASDAQ:UPST) was the recipient of unusually large options trading on Wednesday. Stock investors acquired 93,583 put options on the stock. This represents an increase of 185% compared to the average volume of 32,826 put options.

Upstart News Summary

Here are the key news stories impacting Upstart this week:

• Positive Sentiment: Upstart announced plans to apply for an insured national bank charter (Upstart Bank, N.A.) and to seek bank holding company status — a move that could give Upstart access to low-cost deposit funding, expand margins and reduce funding dependence on third parties. Upstart to Apply for National Bank Charter
• Positive Sentiment: KBRA assigned preliminary ratings to notes in Upstart Securitization Trust 2026-1 (a ~$292M ABS), signaling continued access to capital markets and sustained loan originations through the platform. This supports revenue growth and funding diversity. KBRA Assigns Preliminary Ratings to Upstart Securitization Trust 2026-1
• Positive Sentiment: Needham & Company reaffirmed a “buy” rating and set a $40 price target — signaling analyst confidence and providing headline support for upside versus current levels. Read More
• Neutral Sentiment: Market reports noted the stock “popped” after the close on the bank-charter news, reflecting immediate positive sentiment but not necessarily a change to the company’s underlying credit or profitability profile. Upstart stock pops after the close
• Negative Sentiment: Unusually large options activity: traders bought ~93,583 put contracts (a ~185% increase vs. average). Heavy put buying can indicate market participants hedging or speculating on further downside, increasing near-term volatility and downward pressure.
• Negative Sentiment: Pomerantz LLP opened an investor investigation into Upstart, a potential precursor to litigation that raises legal/financial risk and could weigh on sentiment until resolved. Investor Alert: Pomerantz Investigates UPST

Insiders Place Their Bets

In other Upstart news, CFO Sanjay Datta sold 7,982 shares of the company’s stock in a transaction on Friday, February 20th. The stock was sold at an average price of $29.86, for a total value of $238,342.52. Following the transaction, the chief financial officer owned 276,688 shares of the company’s stock, valued at $8,261,903.68. This represents a 2.80% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Kerry Whorton Cooper sold 1,500 shares of Upstart stock in a transaction that occurred on Friday, December 12th. The stock was sold at an average price of $50.00, for a total transaction of $75,000.00. Following the completion of the transaction, the director directly owned 23,934 shares in the company, valued at approximately $1,196,700. The trade was a 5.90% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 10,981 shares of company stock valued at $357,201. 16.67% of the stock is owned by company insiders.

Hedge Funds Weigh In On Upstart

Several hedge funds have recently modified their holdings of UPST. Clearstead Advisors LLC acquired a new stake in shares of Upstart in the third quarter valued at $25,000. Bayforest Capital Ltd acquired a new position in shares of Upstart in the 4th quarter worth approximately $25,000. Quarry LP raised its holdings in shares of Upstart by 749.2% in the 3rd quarter. Quarry LP now owns 501 shares of the company’s stock worth $25,000 after purchasing an additional 442 shares in the last quarter. Northwestern Mutual Wealth Management Co. boosted its holdings 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 buying an additional 439 shares in the last quarter. Finally, Empowered Funds LLC purchased a new stake in shares of Upstart during the fourth quarter valued at $40,000. 63.01% of the stock is currently owned by institutional investors and hedge funds.

Upstart Trading Down 4.9%

NASDAQ:UPST traded down $1.39 during midday trading on Wednesday, hitting $26.77. 4,652,601 shares of the company were exchanged, compared to its average volume of 5,189,803. Upstart has a fifty-two week low of $25.60 and a fifty-two week high of $87.30. The company has a market capitalization of $2.62 billion, a PE ratio of 63.85, a price-to-earnings-growth ratio of 0.72 and a beta of 2.44. The company has a fifty day simple moving average of $38.36 and a 200 day simple moving average of $47.00.

Upstart (NASDAQ:UPST) last posted its earnings results on Tuesday, February 10th. The company reported $0.17 earnings per share for the quarter, beating the consensus estimate of $0.15 by $0.02. Upstart had a return on equity of 6.30% 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 quarter in the prior year, the company earned $0.26 earnings per share. Upstart’s revenue was up 35.2% compared to the same quarter last year. As a group, equities research analysts expect that Upstart will post -0.03 EPS for the current year.

Upstart declared that its board has initiated a stock repurchase plan on Thursday, February 19th that authorizes the company to repurchase $100.00 million in shares. This repurchase authorization authorizes the company to repurchase up to 3.2% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s board of directors believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on UPST. Needham & Company LLC reissued a “buy” rating and set a $40.00 target price on shares of Upstart in a report on Wednesday. Citizens Jmp reaffirmed a “market underperform” rating and set a $20.00 target price on shares of Upstart in a research note on Friday, February 13th. Truist Financial decreased their price objective on shares of Upstart from $59.00 to $49.00 and set a “buy” rating on the stock in a report on Wednesday, February 11th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Upstart in a report on Monday, December 29th. Finally, Zacks Research cut shares of Upstart from a “hold” rating to a “strong sell” rating in a research report on Tuesday, February 17th. Four equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $48.17.

Upstart Company Profile

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.