Upstart Holdings has been a popular name amongst growth stocks. Yesterday after close, they announced their earnings for Q4 and full year. The stock rose 30% after hours.

Earnings

The company generated Q4 revenue of $304.8M, up from $86.7M a year earlier, beating expectations of $262.9M. This was mainly driven by revenue from fees. EPS rose 1000% year on year.

“With triple-digit growth and record profits, Q4 was an exceptional finish to a breakout year for Upstart. 2021 will be remembered as the year AI lending came to the forefront, kicking off the most impactful transformation of credit in decades,” said Dave Girouard co-founder and CEO of Upstart. “But AI lending isn’t a one-category phenomenon. I’m also happy to report that, with help from an epic push by our team in the last few weeks of the year, auto loan originations on our platform are now ramping quickly and will provide growth opportunities to Upstart for years to come.”

Share buyback

Other good news for investors was the announcement of a share-repurchase programme of up to $400M. “With the volatility in the trading of our stock, we have seen what we believe to be attractive buying conditions at various times over the past year, and our profitability puts us in a position to be able to initiate this program and take advantage of those situations on behalf of our shareholders,” Chief Financial Officer Sanjay Datta said in a release.

With the company deciding that current share prices are too low for what they believe the future holds, they are actioning on this opportunity whilst cash is available to them. Investors should have the same view. The company knows its plans is is very optimistic about the future.

Opportunity

While growth stocks are down heavily, UPST still 65% down from highs, this is a great time to look for a long position in the company. Price look set to open at about $135.

We included UPST in our Top Stock for February. On that article you can find short term target areas that we have identified for the price.

AlphaPicks owns shares in Upstart Holdings. To buy crypto and shares, register here with our preferred partner, EToro.

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