Shares of Upstart (NASDAQ:UPST) have been on a tear recently. A possible explanation for its recent rise could be that it’s the beneficiary of a short squeeze. Interestingly, S3 Partners places UPST stock among its list of 12 stocks with the highest short-squeeze potential. Indeed, the most recent data from Fintel indicates that short interest as a percentage of float was roughly 32% at the end of April.
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However, short squeezes need a catalyst in order to begin their upward trajectory. The first catalyst was the company’s earnings report, which came in much better than expected. This caused an initial surge last week which faded toward the weekend. However, the stock jumped again this week after announcing a deal to sell up to $4 billion worth of consumer installment loans to private credit shop Castlelake.
A look at the past five trading days for UPST stock highlights the level of impact these recent pieces of news had on it. Indeed, shares gained over 9.58% in today’s session at the time of writing. As a result, investors are now up 43.06% during this timeframe.
