Upstart Holdings, Inc. (NASDAQ:UPST) stock is trading lower Wednesday after the company released its second quarter financial results on Tuesday after the market closed.
What To Know: The company reported adjusted earnings per share of 36 cents, beating the consensus estimate of 26 cents. In addition, the company reported sales of $257.00 million, beating the consensus estimate of $225.28 million and representing a 102% year-over-year increase.
Upstart originated 372,599 loans in the second quarter, up 159% from a year earlier, and saw its conversion rate rise to 23.9% from 15.2%. The company's GAAP net income reached $5.6 million, a sharp improvement from the $54.5 million loss it reported in the same quarter last year.
Q3 Outlook: The company sees sales at $280.00 million, versus the consensus estimate of $267.47 million.
FY25 Outlook: Upstart raises its sales guidance from $1.01 billion to $1.05 billion, versus the consensus estimate of $1.01 billion.
Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.
- B of A Securities analyst Nat Schindler maintained a Neutral rating on Upstart and lowered the price target from $88 to $87.
- Piper Sandler analyst Patrick Moley maintained an Overweight rating on Upstart and raised the price target from $75 to $90.
- Morgan Stanley analyst James Faucette maintained an Equal-Weight rating on Upstart and raised the price target from $50 to $70.
- Needham analyst Kyle Peterson maintained a Buy rating on Upstart and raised the price target from $70 to $82.
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UPST Price Action: At the time of writing, Upstart stock is trading 18.0% lower at $67.85, according to data from Benzinga Pro.
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