The stock market was having a mildly strong day. As of 1 p.m. EDT, all three major averages were higher by 0.3% or less.
However, high-momentum fintech Upstart (NASDAQ:UPST) was another story altogether. Not only were shares up by more than 10%, but the stock shattered its previous all-time high and traded for as much as $325 per share earlier in the session. Keep in mind that this is a stock that went public just 10 months ago with an IPO price of $20.
Today's move seems to be mainly fueled by momentum in several high-growth stocks, which are generally leading the markets higher. However, there are a couple of notable catalysts to mention.
First, Northeast regional banking institution WSFS Bank (NASDAQ:WSFS), which has been in business since 1832, just announced this morning that it has launched a personal loan platform powered by Upstart's lending technology. Since Upstart doesn't actually lend money but helps banks facilitate loans, this could certainly help the company's growth going forward.
Second, you may have missed it as the overall market sold off, but on Monday, Barclays (NYSE:BCS) increased its price target on Upstart to $345 per share and maintained its overweight rating on the stock. While we don't give too much weight to analyst ratings and price targets, it's certainly significant because $345 is the highest price target so far among the major Wall Street investment firms that cover the company.
It's easy to understand what has fueled Upstart's momentum to this point. Its first-quarter earnings report was fantastic, and its second quarter looked even better. And the more banks Upstart adds to its list of partners, the more opportunities the business will have to grow in the third and future quarters.