Why Upstart Shares Are Trading Lower Today

Upstart Holdings, Inc. UPST shares are trading lower after Wedbush downgraded the stock from Neutral to Underperform and lowered its price target from $110 to $75.

Wedbush analyst David Chiaverini noted 'we fear that weakening delinquency trends combined with macro- and geopolitical risks could lead to waning appetite from Upstart's credit buyers and the securitization market.'

Chiaverini also noted 'the biggest risk to Upstart, in our view, is its reliance on third-party funding, and this risk tends to become exacerbated during recessions and market turmoil, the beginnings of which could be in process of unfolding.'

Upstart Holdings, Inc. operates a cloud- based artificial intelligence (AI) lending platform in the United States.

Upstart shares were trading about 4.7% lower at $119.94 per share on Tuesday at the time of publication. The stock has a 52-week high of $401.49 and a 52-week low of $75.15.