Investors Purchase Large Volume of Upstart Call Options (NASDAQ:UPST)

Upstart Holdings, Inc. (NASDAQ:UPST) was the recipient of unusually large options trading activity on Wednesday. Stock investors bought 45,688 call options on the stock. This is an increase of 61% compared to the average volume of 28,443 call options.

Upstart News Roundup

Here are the key news stories impacting Upstart this week:

• Positive Sentiment: Broader fintech rebound lifted Upstart alongside peers — market commentary highlights that Upstart’s move looks related to a sector-wide bounce (Affirm also rallied), suggesting investors are reappraising risk in fintech lending. Upstart Soars 14%, Affirm Climbs 7: Two Fintech Disruptors Signal the Sector May Be Turning a Corner
• Positive Sentiment: KBRA assigned preliminary ratings to notes in the Upstart Securitization Trust 2026-2 (a $320.14M ABS). Continued ABS issuance (the 50th securitization) signals capital-market appetite for loans originated via Upstart’s platform and supports funding capacity for growth. KBRA Assigns Preliminary Ratings to Upstart Securitization Trust 2026-2
• Positive Sentiment: Unusual options flow: traders bought ~45,688 call options (≈61% above average call volume), indicating speculative or institutional bullish positioning that can amplify upside on positive news or momentum.
• Positive Sentiment: Analyst/coverage shifts moved mildly positive — Zacks upgraded Upstart from “strong sell” to “hold,” and comparative coverage pieces highlight Upstart’s accelerating AI-driven lending revenue and expansion into new loan categories, which supports the stock’s narrative of improving fundamentals. PayPal vs. Upstart: Which Fintech Stock is the Better Buy Now?
• Neutral Sentiment: Company/market updates and small recent beats are being cited by financial press as part of the move, but they are incremental rather than game-changing on their own. Upstart Holdings, Inc. (UPST) Beats Stock Market Upswing: What Investors Need to Know
• Neutral Sentiment: Longer-term growth narratives (e.g., potential AI-powered bank plans) are being circulated in retail/investor media; these are bullish if executed but remain speculative and long-dated. Prediction: This Artificial Intelligence (AI) Stock Is Going to Double Before 2026 Is Over
• Negative Sentiment: Significant legal overhang — multiple law firms have filed or circulated class-action notices concerning Upstart (alleging misleading statements about AI model calibration and conversion impacts) and are soliciting lead plaintiffs for the May 14, 2025–Nov 4, 2025 class period. This concentrated litigation activity raises the risk of costly settlements, distraction, and continued headline volatility. Faruqi & Faruqi, LLP Highlights Class Action Against Upstart Holdings (UPST)

Insider Buying and Selling

In other Upstart news, CFO Sanjay Datta sold 7,982 shares of the business’s stock in a transaction dated Friday, February 20th. The shares were sold at an average price of $29.86, for a total transaction of $238,342.52. Following the sale, the chief financial officer directly owned 276,688 shares of the company’s stock, valued at $8,261,903.68. The trade was a 2.80% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Over the last quarter, insiders have sold 9,481 shares of company stock worth $282,201. Insiders own 16.67% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Osbon Capital Management LLC purchased a new position in Upstart in the fourth quarter valued at about $49,000. World Investment Advisors bought a new stake in Upstart during the 4th quarter worth approximately $434,000. EMC Capital Management increased its holdings in Upstart by 12.2% during the 4th quarter. EMC Capital Management now owns 11,050 shares of the company’s stock worth $483,000 after acquiring an additional 1,200 shares during the period. Rare Wolf Capital LLC bought a new stake in Upstart during the 4th quarter worth approximately $616,000. Finally, Alpine Woods Capital Investors LLC bought a new position in shares of Upstart in the 4th quarter worth $752,000. 63.01% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several brokerages have commented on UPST. Weiss Ratings reissued a “sell (d+)” rating on shares of Upstart in a research report on Friday, March 27th. Citizens Jmp reaffirmed a “market underperform” rating and issued a $20.00 target price on shares of Upstart in a report on Friday, February 13th. Citigroup cut shares of Upstart from a “buy” rating to a “strong sell” rating in a report on Friday, February 13th. Zacks Research raised shares of Upstart from a “strong sell” rating to a “hold” rating in a report on Monday. Finally, Mizuho dropped their target price on shares of Upstart from $66.00 to $51.00 and set an “outperform” rating on the stock in a report on Thursday, March 26th. Six research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, Upstart currently has an average rating of “Hold” and a consensus target price of $48.00.

Upstart Stock Performance

Shares of NASDAQ:UPST opened at $33.36 on Thursday. The firm has a market cap of $3.27 billion, a PE ratio of 79.43, a price-to-earnings-growth ratio of 0.83 and a beta of 2.16. The firm’s fifty day moving average is $28.68 and its 200-day moving average is $39.94. Upstart has a 52 week low of $23.97 and a 52 week high of $87.30.

Upstart (NASDAQ:UPST) last released its earnings results on Tuesday, February 10th. The company reported $0.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.15 by $0.02. Upstart had a net margin of 5.13% and a return on equity of 6.30%. The business had revenue of $296.09 million for the quarter, compared to analyst estimates of $288.54 million. During the same quarter in the previous year, the business earned $0.26 earnings per share. Upstart’s revenue for the quarter was up 35.2% on a year-over-year basis. Sell-side analysts forecast that Upstart will post -0.03 EPS for the current year.

Upstart announced that its board has approved a stock repurchase program on Thursday, February 19th that allows the company to buyback $100.00 million in shares. This buyback authorization allows the company to repurchase up to 3.2% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s board of directors believes its stock is undervalued.

Upstart Company Profile

Upstart Holdings, Inc operates a cloud-based lending marketplace that leverages artificial intelligence and machine learning to assess borrower creditworthiness. The company partners with banks and credit unions, providing its proprietary AI models and underwriting platform to facilitate consumer credit products. By focusing on non‐traditional data points—such as education, employment history and other real‐time indicators—Upstart seeks to improve approval rates and lower loss rates compared with conventional credit scoring methods.

Upstart’s core offering centers on unsecured personal loans, which borrowers can use for purposes such as debt consolidation, home improvements or major purchases.