On September 6, 2023, Scott Darling, Chief Legal Officer of Upstart Holdings Inc (UPST, Financial), sold 200 shares of the company. This move is part of a broader trend of insider selling at Upstart Holdings Inc, which we will explore in more detail below.
Scott Darling is the Chief Legal Officer of Upstart Holdings Inc, a leading artificial intelligence (AI) lending platform. The company's platform leverages AI to automate the lending process, making it more efficient and reducing the risk of default. Upstart's innovative approach to lending has made it a standout in the fintech industry.
Over the past year, the insider has sold a total of 14,400 shares and has not made any purchases. This recent sale of 200 shares is a continuation of this trend.
The insider transaction history for Upstart Holdings Inc shows a clear trend towards selling. Over the past year, there has been only 1 insider buy compared to 51 insider sells. This could indicate that insiders believe the stock is overvalued, or it could simply be a result of insiders cashing in on the company's recent success.
On the day of the insider's recent sale, shares of Upstart Holdings Inc were trading for $35.08 apiece, giving the company a market cap of $2.62 billion.
Despite the insider selling, Upstart Holdings Inc appears to be modestly undervalued according to the GuruFocus Value. With a price of $35.08 and a GuruFocus Value of $39.41, the stock has a price-to-GF-Value ratio of 0.89.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, while the insider's recent sale may raise some eyebrows, the stock's modest undervaluation according to the GF Value suggests that there may still be upside potential for investors. However, the trend of insider selling at Upstart Holdings Inc is something that investors should keep a close eye on.
