Upstart Holdings Faces Potential Stock Dilution and Price Drop from Convertible Note Conversions

Upstart Holdings, Inc. (UPST) has disclosed a new risk, in the Debt & Financing category.

Upstart Holdings, Inc. faces a potential risk of ownership dilution and stock price depreciation due to the conversion of its 2026, 2029, and 2030 Notes. Should noteholders choose to convert their holdings, the company may issue additional shares, thereby diluting existing stockholders’ interests. This action, coupled with possible short selling by noteholders hedging their positions, could lead to a decrease in the market value of Upstart’s common stock. The anticipation of future share issuances might further exert downward pressure on stock prices.

The average UPST stock price target is $81.00, implying -1.72% downside potential.

To learn more about Upstart Holdings, Inc.’s risk factors, click here.