Insider Selling in Upstart Holdings: Why You Should Pay Attention
Upstart Holdings investors might be feeling a bit wary after the recent sale of $1.3 million worth of stock by Chief Financial Officer Sanjay Datta at $69.82 per share, reducing their overall stake by 13%. While this sale is not insignificant, it’s not the worst news out there.
Looking back over the past year, this sale happens to be the largest insider sale of Upstart Holdings shares we’ve seen. It’s interesting to note that the insider sold below the current price of $74.06 per share, indicating that they may have found that lower price fair. This makes us wonder about their thoughts on the current, higher valuation of the company. While insider selling is not always a positive sign, it doesn’t necessarily mean the stock is overvalued, so it’s a subtle indicator at best.
Insiders at Upstart Holdings have not made any purchases in the past year. Insiders currently own about 13% of the company, valued at approximately $865 million. High insider ownership like this is generally considered a good sign, suggesting that management is looking out for the best interests of shareholders.
Although recent insider activity has included selling without any buying, and there have been no insider purchases in the last year, the high level of insider ownership is reassuring. It’s always important to stay informed about insider transactions, but it’s equally crucial to assess the risks a stock may face before making investment decisions.
Keep in mind that our analysis has identified 4 warning signs for Upstart Holdings, with one of them being significant. While Upstart Holdings may not be the most attractive stock to purchase, you might want to explore other opportunities with a free list of companies with high ROE and low debt. As always, it’s important to do your own research when considering investments to make informed decisions.
