On October 2, 2023, Paul Gu, the Chief Technology Officer of Upstart Holdings Inc (UPST, Financial), sold 15,000 shares of the company. This move is part of a larger trend of insider selling at Upstart Holdings Inc, which we will explore in this article.
Paul Gu is a key figure at Upstart Holdings Inc, serving as the company's Chief Technology Officer. He is responsible for overseeing the technological advancements and innovations of the company. His role is crucial in maintaining the competitive edge of Upstart in the rapidly evolving fintech industry.
Upstart Holdings Inc is a leading artificial intelligence (AI) lending platform. The company's platform aggregates consumer demand for loans and connects it to its network of the company's AI-enabled bank partners. The company's mission is to enable effortless credit based on true risk. Upstart's AI models are trained on more than 10 million repayment events to provide banks with the tools to grow and have a competitive edge.
Over the past year, the insider has sold a total of 81,017 shares and purchased 0 shares. This recent sale of 15,000 shares is a continuation of the insider's selling trend.
The insider transaction history for Upstart Holdings Inc shows a total of 1 insider buy and 56 insider sells over the past year. This suggests a trend of insider selling, which could be a signal to investors about the company's future prospects.
On the day of the insider's recent sale, shares of Upstart Holdings Inc were trading for $28.5 each, giving the company a market cap of $2.253 billion.
With a price of $28.5 and a GuruFocus Value of $39.37, Upstart Holdings Inc has a price-to-GF-Value ratio of 0.72. This suggests that the stock is a possible value trap, and investors should think twice before investing.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) 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, the insider's recent sale of 15,000 shares, along with the overall trend of insider selling at Upstart Holdings Inc, could be a signal to investors about the company's future prospects. However, with a price-to-GF-Value ratio of 0.72, the stock could be a possible value trap, and investors should exercise caution.
