Form 4: Upstart Holdings Chief Legal Officer Sells Shares Under 10b5-1 Trading Plan

Upstart Holdings' Chief Legal Officer, Scott Darling, executed stock option exercises and sales under a pre-arranged 10b5-1 trading plan on September 3, 2024.

Summary

• On September 3, 2024, Scott Darling, the Chief Legal Officer of Upstart Holdings, Inc., engaged in transactions involving the company's common stock.
• Darling exercised options to acquire 7,500 shares of common stock at a price of $13.22 per share.
• Concurrently, Darling sold 7,000 shares at a weighted average price of $40.9883, 500 shares at $41.541, 3,727 shares at $41.0162, and 100 shares at $41.58.
• These transactions were executed under a pre-arranged Rule 10b5-1 trading plan adopted on February 29, 2024.
• Following these transactions, Darling directly owns 161,043 shares of Upstart Holdings common stock and holds options for 354,610 shares.

Sentiment

Score: 5

Explanation: The sentiment is neutral as the filing simply reports stock transactions under a pre-existing trading plan. There's no indication of positive or negative implications for the company's performance.

Industry Context

This filing is a routine disclosure of insider transactions. It's common for executives to use 10b5-1 plans to sell shares over time to avoid accusations of trading on inside information. The impact on Upstart's stock will depend on broader market conditions and investor sentiment.

Comparison to Industry Standards

• Insider selling is a common occurrence in publicly traded companies.
• The use of 10b5-1 trading plans is a standard practice to ensure compliance with insider trading regulations.
• Comparable companies like LendingClub or SoFi also see regular Form 4 filings from their executives.

Stakeholder Impact

• The stock sale could have a minor, temporary impact on shareholders if it creates selling pressure.
• The transactions do not directly impact employees, customers, suppliers, or creditors.

Key Dates