Bearish Sentiment Grows Among Investors for Upstart Holdings

The report highlights a growing bearish sentiment among major investors regarding Upstart Holdings, indicating significant shifts in options trading activity. The mixed analyst ratings further complicate the outlook for the stock as it braces for upcoming earnings.

Date: 27-12-2024

AI Rating: 4

The report provides critical insights into the bearish sentiment displayed by major investors towards Upstart Holdings (ticker: UPST). According to the analysis of options trades, 70% of the activities are bearish, which suggests a negative outlook among these investors. The total volume in options trading showcases a substantial disparity, with 25 calls valued at approximately $1.79 million against 2 puts estimated at around $100,450.

Moreover, the upcoming trading behavior exhibits a projected price range for UPST from $30.0 to $100.0, indicating significant volatility expectations. The substantial amount of options activity, particularly with a notable weight of bearish sentiment, may lead to downward pressure on stock prices as investors brace for potential adverse movements, especially with the current stock price resting at $67.2, down -6.71%.

Additionally, analysts' ratings reflect a divided sentiment. JP Morgan's downgrade to Underweight with a price target of $57 suggests a bearish stance based on their outlook, while other analysts have set higher price targets of $100 and $95, suggesting a mixed sentiment within analyst coverage.

The anticipation of the earnings announcement may also play a critical role in influencing movements. The stock price decline alongside bearish sentiment could potentially signal to existing and prospective investors to reassess their positions in UPST as the earnings date approaches.

Stocks: UPST