STOCKS TELEGRAPH

Tag: UPST

  • Upstart Holdings Inc. (UPST) Collapse After Hours on Bleak Outlook Despite Quarter Beat

    On May 9, the AI lending platform, Upstart Holdings Inc. (UPST) released its March quarter earnings along with expectations for the ongoing quarter and full year. Disappointed by the slashed outlook, investors had the stock plunging to new lows after a huge sell-off.

    Source: rvnl

    Thus, UPST registered a new 52-week low of $42.03 in the after-hours against the previous $71.09, as it declined by 45.51%. A huge volume of 8.36 million shares was responsible for the drop-down in the stock in the late trading session on Monday.

    UPST’s Q1 2022 Earnings

    For the first quarter of 2022, the company remained on its track with triple-digit YOY revenue growth for the fourth consecutive time. Hence, the company reported total revenue of $310 million for the quarter while the total fee revenue was $314 million. This marks a respective increase of 156% and 170% YOY. On top of this, the revenue surpassed the consensus estimate by 2.49% for the quarter.

    Moreover, UPST remained profitable for the seventh consecutive quarter with an adjusted net income of $58.6 million against a year ago’s $19.9 million. Therefore, it posted earnings of $0.61 a share while analysts were expecting $0.52 per share.

    Increasing from 17% last year, the adjusted EBITDA margin was 20% of total revenue in the March quarter of 2022 with an adjusted EBITDA of $62.6 million.

    Future Guidance

    Despite the company’s confidence in tackling the ongoing challenges in the economy, the current quarter outlook, as well as the full guidance, were disappointing.

    For the ongoing quarter, UPST said it is looking ahead to revenue of $295-$305 million while consensus estimates are for $331.58 million. The expected adjusted net income is $28-$30 million and adjusted EBITDA is anticipated to be $32-$34 million for the quarter.

    On the other hand, for the full year, the company slashed its revenue expectations to roughly $1.25 billion against the estimates of $1.4 billion. Furthermore, the adjusted EBITDA is expected to be approximately 15%.

    What’s going on?

    Analysts have been largely bullish on the fintech company as its AI and machine learning-based algorithm for assessing credit risk for banking partners has trumped traditional models. With its unique and cutting-edge algorithm being highly accepted by banks, Wall Street expects its revenue to grow to $3.4 billion by 2026 while earnings are expected to reach $5.98 per share down the line.

    But the current economical and geopolitical situation with a hawkish Federal Reserve hell-bent on curbing inflation through higher interest rates, there is much risk afloat. With the macroeconomic headwinds lending money becomes riskier. This means if banks start cutting back on loans, UPST will suffer a huge blow as its 95% revenue is from bank fees.

  • Upstart Holdings, Inc. (UPST) skyrocketed pre-market; here is why?

    Upstart Holdings, Inc. (UPST) skyrocketed pre-market; here is why?

    Upstart Holdings, Inc. (UPST) gained in the pre-market after announcing its share repurchase program in a press release. UPST values $137.22, gaining more than 25.76% compared to yesterday’s closing price. The stock closed at $109.11 at the end of the last trading session. The stock volume traded in the last trading session was around 6.8 million shares. The current market cap of the company is around $8.94 billion.

    Upstart Holdings, Inc. (UPST) announced share repurchase

    An artificial intelligence payment system known as Upstart Holdings, Inc. (UPST) stated today that its board of directors had approved a share repurchase program with the ability to purchase up to $400 million in common stock.

    For example, Upstart may purchase shares on the open market, privately negotiated deals, or in other ways when trading programs are created under Rule 10b5-1 of the Securities Exchange Act of 1934 (as amended). The stock price, acquisition prospects, company and market conditions, organizational and regulatory needs, and other factors influence future repurchases’ timing and quantity. Upstart is under no obligation to purchase a certain number of shares of its common stock as part of the share repurchase program, and it has the discretion to cease the program at any time.

    UPST CFO’s remarks

    Upstart’s CFO Sanjay Datta believes that the volatility in their stock trading over the past year has provided us with the opportunity to take advantage of what they perceive to be excellent buying conditions, and their earnings put them in a position to do so.

    Conclusion

    Upstart Holdings, Inc. (UPST) is moving forward a step ahead in providing value to its shareholders by repurchasing shares. Upstart amongst the rising tech stock and is one of the best candidates among future tech stock. However, its stock has been on a roller coaster ride in the last few months and has crashed from reaching an all-time high of $401 per share.

  • Early Morning Vibes: 4 Solid Stocks for Wednesday Trading Session

    Early Morning Vibes: 4 Solid Stocks for Wednesday Trading Session

    Good Morning

    On December 22, the American stock indexes finished trading in different directions. The S&P 500 dropped by 0.21% to 3687 points, the Dow Jones fell at a rate of 0.67%, while the NASDAQ climbed at 0.51%. Consumer confidence was significantly worse than expected. The tech sector became the leader of growth with a result of 0.86%; Apple shares acted as the engine, rising in price by 2.85%. The communications sector was one of the outsiders, losing 0.99%.
     

    Corporate Highlights

    Peloton Interactive (PTON: + 11.7%) buys exercise equipment manufacturer Precor for $ 420 million to increase production capacity.
     

    Revenue and EPS CarMax (KMX: -8.1%) were better than expected, but profit margins fell, and demand weakened at the end of the quarter due to COVID-19.

    Sports goods retailer Sportsman’s Warehouse Holdings (SPWH: + 39.6%) will be acquired by the Great American Outdoors Group.
     

    Today, world stock exchanges are showing mostly positive dynamics. The focus of attention is the unexpected statement by Donald Trump about his intention to change the parameters of the economic aid package, for which Congressmen voted yesterday. The current president believes that the one-time payment to the population should be increased from $ 600 per person to $ 2,000. Joseph Biden also noted that it is necessary to expand stimulus measures. Additional cash payments to the population should be included in the next package of assistance to the economy. Most likely, Trump will still sign the bill in the coming days.
     

    New strains of coronavirus continue to cause concern for investors, although virology experts believe that the vaccines available today are effective against the mutated COVID-19. Representatives of AstraZeneca and BioNTech agree.

    Nevertheless, full-fledged research has not yet been carried out. There is no complete confidence in this issue. In general, the news background is close to neutral, but the publication of the macrostatistics block may shift the balance in one direction or another.
     

    Economic Highlights
     

    Today there are weekly data on the number of initial applications for unemployment benefits. The indicator is expected to remain at the level of the previous week – 885

    thousand. If the actual value turns out to be above 893 thousand, it will become the highest since August. The labor market situation remains challenging. More than 5.5 million Americans are currently receiving unemployment benefits.

    Also, the indicator of the expenses of individuals for November will be published. Against the backdrop of new quarantine restrictions, consumption is expected to decrease.
     

    By 0.2% compared to October levels, which will be the first negative value since April. A month earlier, expenses increased by 0.5%.

    Today Top Movers‎

    ‎‎‎Hexo Corp (HEXO)‎‎ share price gaining 300.00% at $4.08 in early morning trading session today following its declaration of lapse of base shelf prospectus.‎‎ ‎

    ‎‎‎Ocugen, Inc (OCGN)‎‎ increasing 83.81% at $1.48 during premarket trading on Wednesday after the company and Bharat Biotech declared the signing of binding letter of intent (LOI) to co-develop Bharat Biotech’s COVID-19 vaccine candidate, COVAXIN, for the United States market.‎‎ ‎

    ‎‎‎Jaguar Health Inc (JAGX)‎‎ is up 52.85% at $0.61 in today’s premarket trading session after declaring the voting results of Jaguar’s December 9, 2020 in the Special Meeting of Stockholders.‎‎ ‎

    ‎‎‎Onconova Therapeutics Inc (ONTX)‎‎ share price changing with the gain of 38.76% at $0.59 in premarket trading on Wednesday after announcing FDA Permission for study to proceed under its investigational new drug application for Multi-kinase CDK4/6 Inhibitor ON 123300.

    Top Upgrades & Downgrades


    Truist Securities turned bullish on Pioneer Natural Resources Company (PXD), upgrading the stock to “Buy” and assigning a $135.0 price target.
     

    Rent-A-Center Inc. (RCII) has won the favor of Loop Capital’s equity research team. The firm upgraded the shares from Hold to Buy and moved their price target to $50.
     

    Illumina Inc. (ILMN) received an upgrade from analysts at Piper Sandler, who also set their one-year price target on the stock to $415.0. They changed their rating on ILMN to Overweight from Neutral in a recently issued research note.
     

    Earlier Wednesday BMO Capital reduced its rating on Fubotv Inc (NYSE: FUBO) stock to Market Perform from Outperform and assigned the price target to $50.
     

    Canaccord Genuity analysts reduced their investment ratings, saying in research reports covered by the media that its rating for Paysign Inc (NASDAQ: PAYS) has been changed to Hold from Buy and the new price target is set at $5.
     

    Analysts at BMO Capital downgraded IAC/Interactivecorp (NASDAQ: IAC)’s stock to Market Perform from Outperform on Wednesday.

    Latest Insider Activity


    FireEye Inc. (FEYE) EVP and General Counsel King Alexa announced the sale of shares taking place on Dec 21 at $20.03 for some 56,532 shares. The total came to more than $1.13 million.
     

    Apartment Investment and Management Company (AIV) Director STEIN MICHAEL A sold on Dec 21 a total 0 shares at $4.70 on average. The insider’s sale generated proceeds of almost $0.22 million.
     

    GameStop Corp. (GME) 10% Owner Cohen Ryan declared the purchase of shares taking place on Dec 18 at $15.97 for some 756,089 shares. The transaction amount was around $12.08 million.
     

    Upstart Holdings Inc. (UPST) 10% Owner Loeb Daniel S bought on Dec 18 a total 13,381,222 shares at $20.00 on average. The purchase cost the insider an estimated $24.0 million.

    Earnings To Watch


    Top US earnings releases scheduled for today include Paychex Inc. (NASDAQ:PAYX). It will announce its Nov 2020 financial results. The company is expected to report earnings of $0.66 per share from revenues of $954M in the three-month period.
     

    Analysts expect Bridgeline Digital Inc. (NASDAQ:BLIN) to report a net income (adjusted) of $0.03 per share, when the bank releases its quarterly results shortly. Revenue for the fiscal quarter ended Sep 2020 is predicted to come in at $2.64M.