Have Upstart Holdings Insiders Been Selling Stock?

Some Upstart Holdings, Inc. (NASDAQ:UPST) shareholders may be a little concerned to see that the Chief Financial Officer, Sanjay Datta, recently sold a substantial US$740k worth of stock at a price of US$38.33 per share. That's a big disposal, and it decreased their holding size by 14%, which is notable but not too bad.

Check out our latest analysis for Upstart Holdings

The Last 12 Months Of Insider Transactions At Upstart Holdings

Notably, that recent sale by Sanjay Datta is the biggest insider sale of Upstart Holdings shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of US$42.00. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 14% of Sanjay Datta's stake.

Insiders in Upstart Holdings didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership Of Upstart Holdings

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Upstart Holdings insiders own 13% of the company, worth about US$463m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Upstart Holdings Tell Us?

Insiders haven't bought Upstart Holdings stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Upstart Holdings. Case in point: We've spotted 4 warning signs for Upstart Holdings you should be aware of, and 1 of them is significant.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.