Upwork (NASDAQ:UPWK) Issues Earnings Results, Misses Estimates By $0.04 EPS

Upwork (NASDAQ:UPWK) issued its earnings results on Monday. The company reported $0.21 earnings per share for the quarter, missing analysts’ consensus estimates of $0.25 by ($0.04), Zacks reports. Upwork had a return on equity of 44.83% and a net margin of 31.75%. Upwork updated its FY 2025 guidance to 1.350-1.370 EPS and its Q4 2025 guidance to 0.310-0.330 EPS.

Upwork Stock Performance

NASDAQ:UPWK traded down $0.31 during mid-day trading on Monday, hitting $15.63. 3,874,205 shares of the stock were exchanged, compared to its average volume of 2,575,257. The stock has a market capitalization of $2.07 billion, a price-to-earnings ratio of 8.98 and a beta of 1.54. The firm’s 50-day simple moving average is $17.02 and its 200 day simple moving average is $15.14. The company has a debt-to-equity ratio of 0.59, a quick ratio of 3.36 and a current ratio of 3.36. Upwork has a fifty-two week low of $11.13 and a fifty-two week high of $20.54.

Upwork declared that its Board of Directors has authorized a share buyback program on Wednesday, September 3rd that permits the company to buyback $100.00 million in outstanding shares. This buyback authorization permits the company to buy up to 4.9% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s management believes its shares are undervalued.

Insider Buying and Selling at Upwork

In other news, insider Dave Bottoms sold 10,894 shares of the business’s stock in a transaction dated Thursday, September 18th. The shares were sold at an average price of $19.16, for a total value of $208,729.04. Following the completion of the sale, the insider owned 10,359 shares of the company’s stock, valued at approximately $198,478.44. The trade was a 51.26% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Erica Gessert sold 19,036 shares of the firm’s stock in a transaction dated Monday, August 18th. The stock was sold at an average price of $13.84, for a total transaction of $263,458.24. Following the transaction, the chief financial officer directly owned 209,202 shares in the company, valued at approximately $2,895,355.68. This represents a 8.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 222,576 shares of company stock valued at $3,670,318 in the last ninety days. 7.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Upwork

A number of institutional investors have recently bought and sold shares of UPWK. Balyasny Asset Management L.P. acquired a new position in shares of Upwork during the 2nd quarter worth approximately $11,955,000. Millennium Management LLC boosted its stake in shares of Upwork by 364.0% in the first quarter. Millennium Management LLC now owns 789,638 shares of the company’s stock valued at $10,305,000 after buying an additional 619,459 shares during the period. First Trust Advisors LP boosted its stake in shares of Upwork by 353.6% in the second quarter. First Trust Advisors LP now owns 311,099 shares of the company’s stock valued at $4,181,000 after buying an additional 242,516 shares during the period. Invesco Ltd. grew its position in Upwork by 8.8% during the second quarter. Invesco Ltd. now owns 2,861,482 shares of the company’s stock worth $38,458,000 after buying an additional 231,103 shares in the last quarter. Finally, Qube Research & Technologies Ltd increased its stake in Upwork by 27.9% during the 2nd quarter. Qube Research & Technologies Ltd now owns 1,036,334 shares of the company’s stock worth $13,928,000 after acquiring an additional 225,856 shares during the period. Institutional investors own 77.71% of the company’s stock.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on UPWK. Citigroup reissued an “outperform” rating on shares of Upwork in a research report on Wednesday, September 24th. JMP Securities lifted their price target on Upwork from $20.00 to $27.00 and gave the stock a “market outperform” rating in a report on Wednesday, September 24th. Weiss Ratings reissued a “hold (c+)” rating on shares of Upwork in a research report on Wednesday, October 8th. UBS Group set a $21.00 price objective on Upwork and gave the company a “buy” rating in a research report on Tuesday, October 28th. Finally, Wall Street Zen upgraded Upwork from a “hold” rating to a “buy” rating in a research note on Sunday, September 28th. Nine research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $19.42.

Upwork Company Profile

Upwork Inc, together with its subsidiaries, operates a work marketplace that connects businesses with various independent professionals and agencies in the United States, India, the Philippines, and internationally. The company’s work marketplace provides access to talent with various skills across a range of categories, including administrative support, sales and marketing, design and creative, and customer service, as well as web, mobile, and software development.