Upstart (NASDAQ:UPST) stock is heading higher on Wednesday after the artificial intelligence ( ) investing company secured additional funding.
According to Upstart, the company has signed agreements with investors for another $2 million in funding. This new funding comes as shares of UPST stock have had it rough with several factors weighing on the company.
Chief among these is inflation and the actions being taken to curb it. That includes the Federal Reserve increasing interest rates in an effort to bring inflation down. However, this new funding is reigniting hope in UPST stock.
Morgan Stanley analyst James Faucette said the funding is a good step toward stabilizing Upstart’s business. He did so while increasing the firm’s price target for UPST stock from $10 per share to $13 per share, Reuters notes.
What This Means for UPST Stock
First off, investors will note that UPST is a highly shorted stock. That means the rally the company is seeing today is called a short squeeze. This happens when investors pump up shares of a stock to incur losses on bearish investors.
With that in mind, heavy trading has some 7 million shares of UPST stock changing hands as of this writing. That’s already above the company’s daily average trading volume of about 5.5 million shares.
UPST stock is up 32% as of Wednesday morning but is only up 9.3% since the start of the year.
Investors looking for even more of the most recent stock market news will want to keep reading!
We’ve got all of the latest stock market stories traders need to know about on Wednesday! A few examples include what’s going on with shares of Rivian Automotive (NASDAQ:RIVN), Syneos Health (NASDAQ:SYNH), and SeaStar Medical (NASDAQ:ICU) stock today. You can catch up on all of this news at the links below!
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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.