What happened
According to its SEC filing dated April 28, 2026, Halter Ferguson Financial Inc. increased its stake in Upstart (UPST 8.06%) by 1,052,039 shares. The estimated transaction value, based on the average unadjusted closing price during the first quarter of 2026, was $37.01 million. The quarter-end value of the position increased by $19.48 million, a figure that incorporates both share purchases and stock price movement.
What else to know
- The fund executed a substantial buy, raising its Upstart stake to 8.26% of 13F reportable assets.
- Top holdings after the filing:
- NASDAQ:TSLA: $215.75 million (47.7% of AUM)
- NASDAQ:QQQ: $42.01 million (9.3% of AUM)
- NASDAQ:UPST: $37.64 million (8.3% of AUM)
- NYSE:LMND: $34.24 million (7.5% of AUM)
- NASDAQ:MU: $21.85 million (4.8% of AUM)
- As of April 27, 2026, shares of Upstart were priced at $33.11, down 31.2% over the past year and trailing the S&P 500 by 61.82 percentage points.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $1.02 billion |
| Net Income (TTM) | $53.60 million |
| Price (as of market close April 27, 2026) | $33.11 |
| One-Year Price Change | (31.16%) |
Company snapshot
- Upstart offers a cloud-based AI lending platform that connects consumer loan demand to a network of bank partners, generating revenue primarily from loan referrals and platform usage fees.
- It operates a cloud-based artificial intelligence (AI) lending platform connecting consumers to a network of bank partners.
- The company targets U.S. consumers seeking loans, with primary customers including banks.
Upstart leverages artificial intelligence to streamline the consumer lending process, enabling more accurate credit risk assessment for its banking partners. The company has established a scalable platform, serving over a thousand employees and generating over $1 billion in annual revenue. Upstart’s competitive advantage lies in its proprietary AI models, which aim to improve loan approval efficiency and reduce default risk for its clients.
What this transaction means for investors
The purchase of Upstart shares by Halter Ferguson Financial is noteworthy for investors. It indicates the hedge fund has a bullish outlook towards the stock, considering it bumped up holdings from 4% of its AUM in the fourth quarter to over 8% in Q1.
It seems Halter Ferguson was taking advantage of Upstart’s fall from grace, as the stock plunged from its 52-week high of $87.30 in 2025 to a low of $23.97 at the end of March. Shares fell as part of Wall Street’s “Great Rotation” away from tech stocks in Q1, as well as the company’s decision to stop issuing quarterly guidance.
Despite the substantial share price drop, Upstart’s business is booming. It exited 2025 with $1 billion in revenue, up an impressive 64% year over year. The company expects ongoing sales growth in 2026, forecasting $1.4 billion in revenue for the year.
Upstart’s share price valuation looks attractive, given its price-to-sales ratio of about three, which is at a multi-year low. This suggests now is a good time to buy the stock.
Robert Izquierdo has positions in Tesla and Upstart. The Motley Fool has positions in and recommends Lemonade, Micron Technology, Tesla, and Upstart. The Motley Fool has a disclosure policy.