- Upstart Holdings (Nasdaq: UPST) falls over 5% on Tuesday.
- UPST stock is back to the 9-day moving average.
- UPST has soared this year and is still up 669% year to date.
Upstart Holdings (UPST) stock did what many had forgotten this stock could do and fell on Tuesday. Falling 5.6% was not good, but given the sea of red across the board it probably could have been a lot worse for UPST, especially as there must be some profit-taking temptation for investors who have seen huge gains this year. Upstart Holdings has had a series of blowout earnings releases this year, which has fueled the bullish rise and seen the stock rise above $300.
Upstart uses an artificial intelligence, cloud-based lending platform, which enables it to offer lending and credit services to banks. It allows banks and financial institutions to tailor their lending to customers by using lots of non-traditional metrics to judge customers' ability to repay loans. This puts it in direct competition with traditional credit checkers like FICO. The lending platform groups consumer requests for loans together and then connects them to partner banks that can decide whether to lend or not. Upstart earns fees from banks that use its system. UPST was only incorporated as recently as 2012 and is headquartered in California.
Upstart (UPST) key statistics
| Market Cap | $25.8 billion |
| Price/Earnings | 511 |
| Price/Sales | 104 |
| Price/Book | 81 |
| Enterprise Value | $11 billion |
| Gross Margin | N/A |
| Net Margin |
12% |
| 52-week high | $346.54 |
| 52-week low | $22.61 |
| Average Wall Street Rating and Price Target | Buy $290.63 |
Upstart Holdings (UPST) stock forecast
The stock has finally seen a pullback as many have been waiting for an opportunity to enter this name. Tuesday saw UPST stock retrace to below the 9-day moving average before recovering somewhat to close just on the level. This can be taken as something of a positive. The Relative Strength Index (RSI), which had been in overbought territory for some time, has finally retraced to more normal levels, but the Moving Average Convergence Divergence (MACD) is about to cross, giving a bearish signal.
With such a strong fall across all equity markets, we expect to see a bounce on Wednesday. We remain with our preferred support zones at $260 and $200, highlighted on the chart. We feel this is not the time to be chasing stocks, but rather it is time to let them come to you. With quarter-end approaching some investors will be tempted to book profits in names that have seen sharp rises, perhaps taking some money off the table in this one.
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