Upstart (NASDAQ:UPST) stock is falling on Tuesday after Wedbush analyst David Chiaverini hit the company with a downgrade today.
The Wedbush analyst dropped UPST stock from a “neutral” rating to hs new “underperform” rating. That bucks the trend of other analysts with the current consensus being “buy.” That comes from seven “buy” ratings, two “hold” ratings, and a single “sell” rating.
Unfortunately for UPST stock, Chiaverini didn’t just stop with a downgrade for the shares. He also dropped his price target for the stock to $75 apiece. The previous price target was $110 per share. It’s worth pointing out that the analyst consensus price prediction for UPST stock is sitting at $230.20.
So what’s behind the bearish stance Chiaverini is taking with UPST stock? The analyst has concerns about the company’s 2021 vintage securitizations delinquency trends. These are weakening faster than in the previous three years.
The Wedbush analyst specifically mentions that this worries him as UPST stock has yet to experience a true recession. Its reliance on third-party funding is chief in this as that typically suffers most during times of economic turmoil.
The poor rating for UPST stock today is being noticed by traders with heavy volume for UPST stock. That has more than 10 million shares changing hands. For comparison, the company’s daily average trading volume is about 10 million shares.
UPST stock is down 3.3% as of Tuesday morning and is down 15.9% since the start of the year.
There’s more stock market news traders will want to know about below!
InvestorPlace houses all the most recent stock news you need to know about for Tuesday! Among that is Okta (NASDAQ:OKTA) stock falling on data breach news, what’s happening with SuperCom (NASDAQ:SPCB) stock, as well as this morning’s biggest pre-market stock movers. You can find all of this news at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.