Why Is Upstart Stock Trading Lower On Monday?

Core Viewpoint - Upstart Holdings Inc. is experiencing a decline in stock price, trading lower after announcing a private offering of $500 million in convertible senior notes due in 2032, alongside positive financial results for the second quarter [1][2]. Financial Performance - Upstart reported adjusted earnings per share of 36 cents for the second quarter, surpassing the consensus estimate of 26 cents [2]. - The company achieved sales of $257 million, exceeding the consensus estimate of $225.28 million, marking a 102% year-over-year increase [2]. - GAAP net income improved to $5.6 million, a significant recovery from a loss of $54.5 million in the same quarter last year [3]. - The company originated 372,599 loans in the second quarter, reflecting a 159% increase from the previous year, with a conversion rate rising to 23.9% from 15.2% [3]. Future Guidance - Upstart anticipates third quarter sales of $280 million, compared to the consensus estimate of $267.47 million [3]. - The company raised its 2025 sales guidance from $1.01 billion to $1.05 billion, aligning with the consensus estimate of $1.01 billion [3]. Stock Performance - Upstart's stock has decreased by nearly 13% over the past month and is currently trading at $64.80, down 5.76% on the day of publication [1][7]. - The 200-day moving average for Upstart is $61.50, which is below the current stock price of $65.22, indicating a generally bullish signal [6].