Have Insiders Sold Upstart Holdings Shares Recently?

We wouldn't blame Upstart Holdings, Inc. (NASDAQ:UPST) shareholders if they were a little worried about the fact that Sanjay Datta, the Chief Financial Officer recently netted about US$1.3m selling shares at an average price of US$79.02. That sale reduced their total holding by 11% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for Upstart Holdings

The Last 12 Months Of Insider Transactions At Upstart Holdings

In fact, the recent sale by Chief Financial Officer Sanjay Datta was not their only sale of Upstart Holdings shares this year. They previously made an even bigger sale of -US$1.3m worth of shares at a price of US$70.50 per share. So what is clear is that an insider saw fit to sell at around the current price of US$68.78. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In the last year Upstart Holdings insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Upstart Holdings insiders own 13% of the company, worth about US$792m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Upstart Holdings Insider Transactions Indicate?

Insiders sold Upstart Holdings shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Upstart Holdings and understanding these should be part of your investment process.

Of course Upstart Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.