What's Going On With Upstart Stock?

Zinger Key Points
  • Upstart shares are rebounding after falling following the company’s first-quarter financial report on Tuesday.
  • The company expects second-quarter revenue of approximately $125 million, below the consensus estimate of $140.83 million. 

Upstart Holdings, Inc. UPST shares are trading higher Thursday. The stock is rebounding after falling following the company's first-quarter financial report on Tuesday.

What To Know:

Upstart reported a quarterly loss of 31 cents per share which beat the analyst consensus estimate of a loss of 39 cents. The company also beat analysts' expectations with quarterly sales of $128 million, representing a 24.36% increase in sales from the same period last year.

However, the company said it expects second-quarter revenue of approximately $125 million, below the consensus estimate of $140.83 million. 

Multiple analysts updated their price targets on Upstart after the print: 

  • Mizuho analyst Dan Dolev maintained an Underperform rating and lowered the price target from $23 to $17.
  • Wedbush reiterated its Underperform rating and $10 price target on Upstart. 
  • Needham reiterated its Hold rating on the stock and noted its second-quarter outlook was well-below estimates as poor credit performance from affluent borrowers continues to drag on results.  

Related News: What's Going On With Affirm Stock After Earnings? 

Is UPST A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Upstart‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Upstart Holdings does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 13.2%, you'll need to buy a share of FS KKR Capital by June 12. Once done, you can expect to receive a nominal payout of $0.64 on July 2.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Upstart Holdings will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

UPST Price Action: According to Benzinga Pro, Upstart shares are up 12.1% at $25.91 at the time of publication Thursday.

Image: Courtesy of Upstart Holdings, Inc.

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