On September 11, 2023, Sanjay Datta, the Chief Financial Officer (CFO) of Upstart Holdings Inc (UPST, Financial), sold 1,000 shares of the company. This move is part of a series of insider transactions that have been taking place over the past year.
Who is Sanjay Datta?
Sanjay Datta is the CFO of Upstart Holdings Inc. He has been with the company since its early stages and has played a significant role in its financial management and growth. Over the past year, Datta has sold a total of 154,376 shares and has not made any purchases.
About Upstart Holdings Inc
Upstart Holdings Inc is a leading artificial intelligence (AI) lending platform. The company's platform aggregates consumer demand for loans and connects it to its network of the company's AI-enabled bank partners. The company's AI models are trained on years of credit data and billions of transactions. The platform is designed to improve access to affordable credit while reducing the risk and costs of lending for its bank partners.
Insider Sell Analysis
The insider transaction history for Upstart Holdings Inc shows a trend of more sells than buys over the past year. There have been 52 insider sells and only 1 insider buy. This could indicate that insiders believe the stock is currently overvalued, prompting them to sell their shares.
The stock price of Upstart Holdings Inc was $31.09 per share on the day of the insider's recent sell, giving the company a market cap of $2.56 billion. This is a significant figure, indicating the company's substantial size and influence in the market.
GF Value Analysis
The GuruFocus Value of Upstart Holdings Inc is $39.40, which is higher than its current trading price. This gives the stock a price-to-GF-Value ratio of 0.79, suggesting that the stock is modestly undervalued.
The GF Value is calculated based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates. Despite the insider's recent sell, the stock's undervalued status could present a potential opportunity for investors.
However, it's important to note that insider selling does not necessarily indicate a negative outlook for the company. Insiders may sell shares for personal reasons or to diversify their portfolio. Therefore, investors should not solely rely on insider transactions when making investment decisions but should consider other factors such as the company's financial health, market conditions, and industry trends.
In conclusion, while the insider's recent sell of Upstart Holdings Inc shares is noteworthy, the stock's modest undervaluation according to the GF Value could present a potential opportunity for investors. As always, potential investors should conduct thorough research and consider multiple factors before making investment decisions.
