2023-06-20 16:27:19 ET
- Upstart Holdings ( NASDAQ: UPST ) stock dropped 10% in Tuesday trading, partly erasing its 16% jump last week when the lending platform signed up a new bank partner and received a favorable rating from BTIG.
- The decline also occurred on the same day Bloomberg reported that Upstart ( UPST ) is premarketing $174M+ of consumer loans asset-backed securitization. Pricing is expected late in the week.
- The drop isn't surprising as Upstart's ( UPST ) stock price exceeded its 200-day simple moving average by 90%, an indication that the stock was due to backtrack.
- The recent surge in the price also fails to gibe with the average sell-side rating of Sell and the SA Quant rating of Hold. By contrast, SA analysts may consider the recent stock movement warranted, as their average rating for UPST is Buy.
- For two contrasting views: SA analyst Alex Ponte says Upstart's ( UPST ) core revenue relies on referral and platform fees rather than superior AI tech; Investing Group Leader From Growth to Value explains why the UPST is investable again.
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Why did Upstart stock fall today? Momentum peters out after strong week