Shares of Upstart Holdings, Inc. (NASDAQ:UPST) are trading lower Wednesday after the company reported mixed earnings results for the third quarter and issued weak guidance.
- UPST is encountering selling pressure. See what is driving the movement here.
What To Know: The AI lending platform company missed expectations for revenue, bringing in $277.11 million versus the expected $279.62 million. Upstart reported adjusted earnings of 52 cents per share for the third quarter, beating estimates of 42 cents per share, according to Benzinga Pro.
Upstart issued soft guidance for the fourth quarter, estimating $288 million in revenue versus the analyst consensus of $303.62 million. The company also lowered its full-year revenue guidance from $1.055 billion to $1.035 billion versus estimates of $1.056 billion.
Upstart shares were down more than 14% at last check following the company’s weak outlook, according to Benzinga Pro.
Several analysts lowered price targets in response to earnings, which appears to be adding to the selling pressure on Wednesday.
- Bank of America analyst Mihir Bhatia maintained a Neutral rating and lowered the price target to $71 from $81.
- Needham analyst Kyle Peterson maintained a buy and lowered the price target to $56 from $82.
- Morgan Stanley analyst James Faucette maintained an equal weight and lowered the price target to $45 from $70.
- Stephens & Co. analyst Kyle Joseph maintained an equal weight and lowered the price target to $40 from $55.
UPST Analysis: Upstart is trading approximately 30.6% below its 50-day moving average of $57.52 and about 32.7% below its 200-day moving average of $59.29. This positioning suggests a bearish trend, as the stock remains significantly below these key moving averages, which often serve as indicators of longer-term price momentum. The relative strength index (RSI) is at 37.33, signaling a neutral condition, but it is approaching oversold territory, which could indicate potential for a rebound if buying interest returns.
With no clear support levels established from recent price action, the 50-day moving average may act as a psychological barrier for investors. Resistance is also unclear, but the 52-week high of $96.42 represents a significant hurdle that the stock would need to overcome to regain investor confidence. The absence of established support and resistance levels adds to the uncertainty surrounding the stock’s immediate future.
UPST Price Action: Upstart shares were down 14.26% at $39.69 at the time of publication on Wednesday, according to Benzinga Pro.
Read More:
Image: Shutterstock
