Upstart Stock Jumps on Upgrade to ‘Buy’

Needham upgraded UPST to “buy” from “hold”

Artificial intelligence (AI) lending stock Upstart Holdings Inc (NASDAQ:UPST) is surging today, up 9.2% at $84.20 at last glance, following an upgrade from Needham to “buy” from “hold.” The firm cited a better funding balance, and set its price target at $100, a level not seen since 2022. 

Today’s pop has UPST nearing its Nov. 11 two-year high of $86.07, with support from the ascending 20-day moving average. Longer term, UPST is outperforming with a 102.4% year-to-date gain. 

Options traders are eyeing Upstart stock after the bull note. So far today, 42,000 calls and 21,000 puts have been exchanged, which is triple the overall options volume typically seen at this point. The weekly 12/13 85-strike call is the most popular contract, with positions being opened there. 

It’s also worth noting that though short interest has started to unwind, it still represents a hefty 27% of the stock’s available float. This leaves plenty of buying power that could provide further tailwinds. 

 

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