Should You Buy Upstart While It's Below $75?
Upstart (NASDAQ: UPST) stock has rallied in recent months, going from as low as $20 per share in August to over $55 per share at the time of this writing. Despite its recent rally, however, it remains 86% below its all-time high price of $401 per share in October 2021.
Consumer lenders have struggled with the higher interest rate environment over the past several years, but things look like they could be turning a corner. Last month, the Federal Reserve cut its benchmark interest rate by 50 basis points, and more cuts appear to be coming. Upstart is well positioned to capitalize on lower rates, but is the stock a buy today?
Upstart stock was an immediate winner after its December 2020 initial public offering. The consumer lender benefited from the economic environment at the time, which saw low interest rates, strong fiscal stimulus, and strong consumers. The company was profitable immediately and launched a massive $400 million share repurchase program amid management's optimism.
Source Fool.com
