Please ensure Javascript is enabled for purposes of website accessibility

Here's Why Upstart Is Rising Again on Friday

By Matthew Frankel, CFP® – Updated Aug 13, 2021 at 1:43PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company's investors just got some good news.

What happened

Upstart Holdings (UPST 1.31%) has been on fire this week. The fintech lending disruptor released its latest results on Tuesday and the stock climbed by about 25% on the numbers, which absolutely blew past analyst expectations and the company's own guidance.

It doesn't look like the good times are over yet. Upstart is rising yet again on Friday. As of 1 p.m. EDT Friday, Upstart had gained about 12% and reached a new all-time high during the trading session, smashing through the $200 barrier for the first time. Keep in mind that this is a company that went public at an IPO price of just $20 per share in December.

Older man looking at laptop and cheering.

Image source: Getty Images.

So what

The reason for today's move appears to be fueled by an analyst upgrade. Specifically, Barclays just raised Upstart's rating from equal weight to overweight. The firm also dramatically increased its price target on the fintech disruptor from $130 to $230. That's a big vote of confidence.

Now what

To be sure, it's important for investors to take analyst upgrades with a big grain of salt. When an analyst upgrades a stock or raises its price target, it does absolutely nothing to change the underlying business.

Having said that, this is just the latest in a wave of positive sentiment on the fintech lender, and it's not difficult to see why. Not only did Upstart shatter expectations on both the top and bottom lines in its recent earnings report, but it is also expecting the good times to continue. Upstart's own guidance now calls for about $750 million in revenue this year, a big increase from the $600 million figure Upstart shared just three months ago (which itself had already been increased from a $500 million projection).

Matthew Frankel, CFP has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Upstart Holdings, Inc. The Motley Fool recommends Barclays. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Upstart Holdings, Inc. Stock Quote
Upstart Holdings, Inc.
$18.52 (1.31%) $0.24
Barclays PLC Stock Quote
Barclays PLC
$7.81 (1.43%) $0.11

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.