Given the hawkish signals from the Fed, we anticipate prices will move even higher later this year, which would have the effect of reducing our transaction volume, all else being equal,” he added. “In addition to increasing rates for approved borrowers, this also has the effect of lowering approval rates for applicants on the margin. In the May earnings call, Girouard also warned that increased risk in the economy was raising loan prices on the platform and lowering demand. This combination could leave Upstart’s ( UPST) customers struggling to meet repayments. High US inflation is increasing the cost of living and this looks set to be coupled with sustained interest rate hikes. ![]() ![]() These lower projections were driven by an increasingly hostile lending outlook. This marks a significant downward revision of last quarter’s projections, when the firm expected revenues of approximately $1.4bn for FY22. According to data from MarketBeat, his figure beat analyst expectations by $0.08.īut Upstart ( UPST) also issued updated guidance, stating it now expects projected revenues of approximately $1.25bn for FY22. Net income was $32.7m, up from $10.1m in Q1 2021.Įarnings per share ( EPS) of $0.61 represented a 122% increase on the prior-year quarter. The company reported revenue of $310m, up 156% from $121m in the prior-year quarter. Headlines were positive, but investors were disappointed by gloomy full-year guidance. Upstart announced first quarter results on 9 May. The stock was trading significantly below its 10 and 20-day moving averages ($77.13 and $79, respectively), signalling a bear trend. In terms of technical analysis for Upstart stock at the time of writing (12 May), the relative strength index (RSI) reading was 25.72, signifying that the stock was in oversold territory. In an earnings call, Girouard acknowledged the challenging macroeconomic climate facing the company, stating that “it’s become apparent that 2022 is shaping up to be a challenging one for the economy and for the financial services industry in particular”. Investors took flight, fearing bad news lay ahead, and the share price fell by almost 25% in the week following the news.ĭisappointing first-quarter results released on 9 May did little to reassure investors, and the price plunged 46% in after-hours trading. The share price dipped again, and tumbled in April when US Securities and Exchange Commission (SEC) filings revealed that CEO Dave Girouard had sold a significant amount of Upstart shares. The market reacted favourably to the news and the share price jumped from $104.60 to $148.60 by day’s end on 16 February.īut these gains were short-lived. This had fallen to 200% for Q3, and the company issued guidance equivalent to 200% revenue growth for Q4.įebruary 2022 saw Upstart announce fourth-quarter and full-year results, and a share buyback programme. Upstart reported year-over-year revenue growth of over 1,000% in Q2 2021. Though headlines were good, investors were disappointed by revenue guidance issued for the quarter ahead. The stock entered a bear run in November 2021, triggered by mixed third-quarter results. The stock was bolstered over this period by several banks launching personal loans platforms powered by Upstart, and the strong second-quarter results announced on 10 August 2021. The price grew over the course of the spring and entered a bull run in late June 2021, when it rose from around $120 to an all-time high of $390 on 15 October. This growth continued, and by 1 February 202, the share price stood at $62.19 – a 211% increase on its initial public offering (IPO) level. The price rose by 50% on the first day of trading, closing at $29.47. Davy Group is a member of the Bank of Ireland Group.Upstart ( UPST) stock came to market on 16 December 2020 at an opening price of $20 a share. Davy Securities Unlimited Company is a member of FINRA and SIPC. ![]() Davy Securities Unlimited Company is regulated by the Central Bank of Ireland. Davy Corporate Finance Unlimited Company is regulated by the Central Bank of Ireland. ![]() J & E Davy (UK) Limited, trading as Davy Private Clients UK, Davy UK and Davy Capital Markets UK, is authorised and regulated by the Financial Conduct Authority. J & E Davy Unlimited Company, trading as Davy, Davy Private Clients, Davy Capital Markets, Davy Select, Davy Institutional Consulting, Davy Real Estate and Davy Research, is regulated by the Central Bank of Ireland. J & E Davy Unlimited Company, J & E Davy (UK) Limited, Davy Corporate Finance Unlimited Company and Davy Securities Unlimited Company are part of the Davy Group of companies. We are over 800 people, managing €16bn+ of our client assets, with offices in Dublin, Belfast, Cork, Galway, and London. Established in 1926, the Davy Group is a trusted market leader in wealth management and capital markets, building rewarding relationships that last.
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