UPST Should I Buy
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Upstart Holdings Inc. (UPST) is not a strong buy for a beginner, long-term investor at this time. While the company has shown revenue growth and some positive developments, significant risks such as insider selling, legal challenges, and declining net income make it a less favorable choice. The technical indicators suggest the stock is overbought, and the lack of strong trading signals further reduces its appeal.
The MACD is positive and expanding, indicating bullish momentum. However, the RSI is at 86.061, signaling an overbought condition. The stock is trading near its resistance level of 33.024, with limited upside potential in the short term.
Revenue grew 35% YoY in Q4 2025, reaching $265.22 million.
Gross margin improved slightly to 80.45%.
The company issued $320.14 million in asset-backed securities, reflecting growth in the consumer loan market.
Insider selling has increased by 874.85% over the last month.
A class action lawsuit has been filed against the company, alleging misrepresentation of loan approval rates and revenues.
Net income dropped significantly by -776.44% YoY in Q4 2025, and EPS fell by -666.67%.
Analysts have been lowering price targets, citing macro uncertainty and valuation concerns.
In Q4 2025, revenue increased by 33.09% YoY to $265.22 million. However, net income dropped by -776.44% YoY to $18.64 million, and EPS fell by -666.67% to 0.17. Gross margin improved slightly to 80.45%, up 1.03% YoY.
Analysts have mixed views on UPST. While some upgrades were noted (e.g., BTIG upgraded to Buy with a $43 price target), others downgraded or lowered price targets due to macro uncertainty and valuation concerns. The most recent price target is $36 from BofA, down from $40, with a Neutral rating.
