Upstart Stock Is Surging Today: What's Going On?

Upstart Holdings Inc UPST shares are trading higher Monday after Castlelake announced it reached a purchase agreement for loans originated on Upstart's platform.

What Happened: Alternative investment manager Castlelake reached an agreement to purchase up to $4 billion of consumer installment loans from Upstart, consisting of the acquisition of a back book of loans and a forward flow arrangement.

"Through this purchase agreement, Castlelake is pleased to partner with Upstart to expand its business in response to the increasing demand for affordable credit in today's economic environment," said John Lundquist, partner, specialty finance at Castlelake.

Upstart said Castlelake's support will help ensure the company has the resources needed to continue scaling the deployment of its AI models and access to affordable credit.

See Also: Why Intuit, HR Block Shares Are Trading Lower

UPST Price Action: Upstart shares were up 16.8% at $19.14 at the time of writing, according to Benzinga Pro.

This illustration was generated using artificial intelligence via MidJourney.