Upwork (NASDAQ:UPWK) Shares Gap Up on Analyst Upgrade

Upwork Inc. (NASDAQ:UPWK)’s share price gapped up prior to trading on Tuesday after Needham & Company LLC raised their price target on the stock from $19.00 to $25.00. The stock had previously closed at $15.63, but opened at $18.83. Needham & Company LLC currently has a buy rating on the stock. Upwork shares last traded at $16.7030, with a volume of 3,137,828 shares.

Other research analysts also recently issued research reports about the stock. Citigroup restated a “neutral” rating on shares of Upwork in a research report on Tuesday. UBS Group set a $21.00 price target on shares of Upwork and gave the stock a “buy” rating in a research report on Tuesday, October 28th. Weiss Ratings restated a “hold (c+)” rating on shares of Upwork in a research report on Wednesday, October 8th. Jefferies Financial Group restated a “buy” rating and issued a $22.00 price target on shares of Upwork in a research report on Tuesday. Finally, Wall Street Zen upgraded shares of Upwork from a “hold” rating to a “buy” rating in a research report on Sunday, September 28th. Eight research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $20.50.

Insider Activity at Upwork

In other Upwork news, CEO Hayden Brown sold 60,000 shares of the company’s stock in a transaction on Friday, August 15th. The shares were sold at an average price of $13.76, for a total transaction of $825,600.00. Following the transaction, the chief executive officer owned 1,093,485 shares in the company, valued at approximately $15,046,353.60. This represents a 5.20% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CFO Erica Gessert sold 19,036 shares of the company’s stock in a transaction on 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 owned 209,202 shares in the company, valued at approximately $2,895,355.68. The trade was a 8.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 222,576 shares of company stock worth $3,670,318 in the last quarter. Company insiders own 7.60% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of UPWK. Cambridge Investment Research Advisors Inc. raised its holdings in Upwork by 174.1% during the first quarter. Cambridge Investment Research Advisors Inc. now owns 54,365 shares of the company’s stock worth $709,000 after buying an additional 34,534 shares during the last quarter. Teacher Retirement System of Texas raised its holdings in Upwork by 12.8% during the first quarter. Teacher Retirement System of Texas now owns 115,205 shares of the company’s stock worth $1,503,000 after buying an additional 13,044 shares during the last quarter. Envestnet Asset Management Inc. bought a new stake in shares of Upwork in the 1st quarter worth $1,258,000. Financial Gravity Asset Management Inc. bought a new stake in shares of Upwork in the 1st quarter worth $4,614,000. Finally, Cerity Partners LLC grew its stake in shares of Upwork by 8.0% in the 1st quarter. Cerity Partners LLC now owns 68,349 shares of the company’s stock worth $892,000 after acquiring an additional 5,068 shares in the last quarter. Institutional investors and hedge funds own 77.71% of the company’s stock.

Upwork Stock Performance

The company has a debt-to-equity ratio of 0.59, a quick ratio of 3.36 and a current ratio of 3.36. The stock has a market cap of $2.25 billion, a P/E ratio of 9.74 and a beta of 1.57. The company’s 50 day moving average price is $17.04 and its 200-day moving average price is $15.16.

Upwork (NASDAQ:UPWK) last posted its earnings results on Monday, November 3rd. The company reported $0.21 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.25 by ($0.04). Upwork had a return on equity of 44.83% and a net margin of 31.75%.The firm had revenue of ($387.62) million during the quarter, compared to the consensus estimate of $193.33 million. During the same quarter in the previous year, the company earned $0.30 EPS. The business’s revenue was up 4.1% compared to the same quarter last year. Upwork has set its FY 2025 guidance at 1.350-1.370 EPS. Q4 2025 guidance at 0.310-0.330 EPS. Equities analysts forecast that Upwork Inc. will post 0.84 EPS for the current fiscal year.

Upwork declared that its board has authorized a stock buyback plan on Wednesday, September 3rd that authorizes the company to buyback $100.00 million in shares. This buyback authorization authorizes the company to reacquire up to 4.9% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s board believes its shares are undervalued.

About Upwork

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.