UPST - Insurers top financial gainers in week's trading Carlyle XP decline the most

Three of the biggest gaining financial stocks are insurance companies and a fourth stock is a beaten-down fintech that gained after July's inflation data came in better than expected. July's CPI report also showed that insurance prices increased during the month.

Lemonade ( NYSE: LMND ) shares jumped 33% during the week after the AI-driven insurer posted a smaller-than-expected Q2 loss and mapped out its path to profitability;

Jackson Financial ( NYSE: JXN ), the financial stock with the next biggest weekly increase ( +20% ), even after its Q2 adjusted operating EPS of $2.52 , which included the negative $238M impact of notable items, declined from $6.74 in the year-ago quarter. The company, which was spun off from Prudential Plc ( PUK ) in 2021, returned $116M to shareholders during the quarter;

Goosehead Insurance ( NASDAQ: GSHD ) saw its stock gain 19% ;

Upstart Holdings ( NASDAQ: UPST ), which uses AI to help banks make lending decisions, posted weaker-than-expected Q2 results, but its shares jumped 17% for the week with the help of the a decent inflation report and bets that the Fed will become less aggressive in raising rates. Note that YTD, the stock is still down 77%; and

American Equity Investment Life ( AEL ) climbed 17% for the week after posting stronger-than-expected Q2 earnings .

For the financial stocks that dropped the most, three are fintechs that are based outside the U.S. Brazil-based XP Inc. ( XP ) slid 17% for the week after Q2 profit was hurt by investments and JPMorgan downgraded the stock to Neutral;

Carlyle Group ( CG ) fell 7.3% for the week when the private equity abruptly announced that its CEO Kewsong Lee is leaving , after almost five years as its chief executive ;

Shanghai-based Lufax Holding ( LU ) dropped 6.1% ;

Brazilian fintech Nu Holding ( NYSE: NU ), known as Nu Bank, fell 5.4% ; and

Seacoast Banking Corp. of Florida ( SBCF ) dipped 4.1% after agreeing to acquire Florida's Professional Bank in a transaction valued at $488.6M.

SA contributor Bert Hochfeld sees short-term pain at Upstart ( UPST ) worth the long-term potential for its model

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