Why Upstart Shares Are Getting Cut In Half Today

Upstart Holdings Inc UPST shares are trading significantly lower Tuesday after the company reported financial results and issued full-year guidance below analyst estimates. Several analysts also downgraded and lowered price targets on the stock. 

Upstart said first-quarter revenue increased 156% year-over-year to $310 million, which beat the $300.12 million estimate, according to data from Benzinga Pro. The company reported quarterly earnings of 61 cents per share, which beat the estimate of 50 cents per share.

Upstart expects second-quarter revenue to be between $295 million and $305 million versus the $334.8 million estimate. Full-year 2022 revenue is now expected to be about $1.25 billion versus the $1.4 billion estimate.

Analyst Assessment: 

• Piper Sandler analyst Arvind Ramnani downgraded Upstart from an Overweight rating to a Neutral rating and lowered the price target from $230 to $44.
• Stephens & Co. analyst Vincent Caintic downgraded Upstart from an Equal-Weight rating to an Underweight rating and lowered the price target from $124 to $28.
• Citigroup analyst Peter Christiansen downgraded Upstart from a Buy rating to a Neutral rating and lowered the price target from $180 to $50.
• Wedbush analyst David Chiaverini maintained Upstart with an Underperform rating and lowered the price target from $70 to $35.

UPST Price Action: Upstart has traded as high as $401.48 over a 52-week period. It's making new 52-week lows on Tuesday.

The stock was down 54.7% at $34.95 at time of publication.

Photo: courtesy of Upstart.