Upstart Holdings Downgraded: Time to Exit the Market Rush
December 23, 2023
🌥️Trending News
Upstart Holdings ($NASDAQ:UPST) has seen its stock ratings recently downgraded, prompting investors to take caution in the face of a potential market crash. Upstart Holdings is a leading financial technology company that provides online lending and banking services to both consumers and small businesses. The company’s innovative products and services have helped it to become a prominent player in the industry, but its status as a market leader is now being challenged as its stock rating has been downgraded. It is therefore important for investors to heed this rating downgrade and step away from the market frenzy that has been associated with the stock over the last few months. With the rating downgrade, comes increased risk for those investing in Upstart Holdings, as it may no longer be able to deliver the same returns it was able to previously.
Investors need to consider whether Upstart Holdings is still a viable option for their investment portfolio. The recent downgrade is an indication that the company may not be able to keep up with its competitors, and that there may be more risk associated with investing in Upstart Holdings than previously thought. For those considering investing in Upstart Holdings, it is important to do thorough research into the company’s financial outlook before making any decisions.
Market Price
On Friday, UPSTART HOLDINGS stock opened at $46.0 and closed at $44.2, down by a notable 2.2% from last closing price of 45.2. This marks a downturn in the company’s stock after its strong performance earlier in the week. This downgrade suggests that it may be time to exit the market rush and take profits as UPSTART HOLDINGS may be about to experience further downward pressure on its stock price. With the company’s performance faltering, investors should look for better opportunities for their investments elsewhere. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Upstart Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 515.48 | -253 | -46.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Upstart Holdings. More…
| Operations | Investing | Financing |
| -269.66 | -173.68 | 228.44 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Upstart Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2k | 1.36k | 7.54 |
Key Ratios Snapshot
Some of the financial key ratios for Upstart Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 35.3% | – | – |
| FCF Margin | ROE | ROA |
| -55.3% | -24.8% | -7.9% |
Analysis
At GoodWhale, we conducted an analysis of UPSTART HOLDINGS‘ fundamentals, revealed by Star Chart. The analysis showed that they are strong in growth and weak in asset, dividend, and profitability. Based on these results, we concluded that UPSTART HOLDINGS is classified as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. Given its moderate performance, it is likely that investors interested in UPSTART HOLDINGS will be primarily value investors. This is due to the company’s intermediate health score of 5/10 with regard to its cashflows and debt, which likely indicates that UPSTART HOLDINGS can sustain future operations in times of crisis. More…
Peers
The company was founded in 2012 and is headquartered in San Francisco, California. Upstart Holdings Inc operates in the United States and Canada. The company offers personal loans to applicants with a good credit history and a steady income. The company also offers loans to students and recent graduates. LendingClub Corp is a financial technology company that offers personal loans, small business loans, and student loans. The company was founded in 2006 and is headquartered in San Francisco, California. LendingClub Corp operates in the United States, Canada, and the United Kingdom. SoFi Technologies Inc is a financial technology company that offers student loans, personal loans, and mortgage loans. The company was founded in 2011 and is headquartered in San Francisco, California. SoFi Technologies Inc operates in the United States and the United Kingdom. PayPal Holdings Inc is a technology company that operates a global online payments system. The company was founded in 1998 and is headquartered in San Jose, California. PayPal Holdings Inc operates in 202 markets and has 193 million active account holders.
– LendingClub Corp ($NYSE:LC)
LendingClub is an online credit marketplace connecting borrowers and investors. LendingClub’s technology platform enables it to provide a differentiated customer experience, offer lower costs, and create better outcomes for borrowers and investors.
LendingClub’s mission is to transform the banking system to make credit more affordable and investing more rewarding. The company was founded in 2006 and is headquartered in San Francisco, California.
LendingClub has a market cap of $1.22B as of 2022 and a Return on Equity of 9.83%. The company’s technology platform enables it to provide a differentiated customer experience, offer lower costs, and create better outcomes for borrowers and investors.
– SoFi Technologies Inc ($NASDAQ:SOFI)
SoFi Technologies Inc is a financial technology company with a market cap of 5.22 billion as of early 2021. The company offers a range of financial services including student loan refinancing, personal loans, mortgage loans, and investing products. SoFi has been one of the fastest-growing companies in Silicon Valley in recent years and has raised over $4 billion in venture funding.
– PayPal Holdings Inc ($NASDAQ:PYPL)
PayPal Holdings Inc is a digital payments company that enables customers to send and receive money online. The company has a market cap of 103.2 billion as of 2022 and a return on equity of 11.16%. PayPal Holdings Inc operates in more than 200 countries and territories and has over 300 million active customers. The company enables customers to pay and get paid in more than 100 currencies.
Summary
UPSTART Holdings has recently been downgraded by analysts, prompting investors to rethink their strategies. The company, which provides online banking, loan services and credit scoring products, has seen its stock price drop considerably in the past few months. This has been attributed to increased competition in the marketplace and a lack of clarity on its business model. Investors are recommended to be cautious when considering investment in UPSTART, as the company’s future is uncertain.
In addition, the high debt levels of the company have raised concern among analysts regarding its ability to repay loans. As such, investors should take a wait-and-see approach to investing in UPSTART before deciding whether to enter or exit the market.
Related Posts
Recent Posts
