Upwork (NASDAQ:UPWK) Shares Gap Up – Here’s Why

Upwork Inc. (NASDAQ:UPWK) gapped up before the market opened on Tuesday . The stock had previously closed at $18.55, but opened at $19.72. Upwork shares last traded at $19.8410, with a volume of 1,336,730 shares changing hands.

Wall Street Analyst Weigh In

A number of analysts have recently commented on the company. Needham & Company LLC reissued a “buy” rating and issued a $25.00 price target on shares of Upwork in a research report on Wednesday, November 19th. Citigroup reissued a “market outperform” rating on shares of Upwork in a report on Wednesday, November 19th. JMP Securities raised their price target on Upwork from $20.00 to $27.00 and gave the company a “market outperform” rating in a report on Wednesday, September 24th. Royal Bank Of Canada lifted their price target on Upwork from $18.00 to $21.00 and gave the stock a “sector perform” rating in a research report on Tuesday, November 4th. Finally, Wall Street Zen raised shares of Upwork from a “hold” rating to a “buy” rating in a research report on Sunday, September 28th. Ten equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, Upwork currently has an average rating of “Moderate Buy” and an average target price of $22.92.

Upwork Stock Up 7.6%

The stock has a market capitalization of $2.61 billion, a P/E ratio of 11.41 and a beta of 1.57. The business has a fifty day moving average price of $17.44 and a 200-day moving average price of $15.53.

Upwork (NASDAQ:UPWK) last issued its earnings results on Monday, November 3rd. The company reported $0.21 earnings per share for the quarter, missing analysts’ consensus estimates of $0.25 by ($0.04). The business had revenue of $201.73 million during the quarter, compared to analysts’ expectations of $193.33 million. Upwork had a return on equity of 41.05% and a net margin of 31.63%.Upwork’s quarterly revenue was up 4.1% compared to the same quarter last year. During the same period last year, the firm posted $0.30 EPS. Upwork has set its FY 2025 guidance at 1.350-1.370 EPS. Q4 2025 guidance at 0.310-0.330 EPS. On average, equities analysts expect that Upwork Inc. will post 0.84 earnings per share for the current fiscal year.

Upwork announced that its Board of Directors has initiated a stock buyback program on Wednesday, September 3rd that authorizes the company to repurchase $100.00 million in outstanding shares. This repurchase authorization authorizes the company to buy up to 4.9% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s management believes its stock is undervalued.

Insider Buying and Selling at Upwork

In other Upwork news, CEO Hayden Brown sold 24,846 shares of the firm’s stock in a transaction dated Tuesday, November 18th. The stock was sold at an average price of $16.70, for a total value of $414,928.20. Following the transaction, the chief executive officer directly owned 1,107,894 shares of the company’s stock, valued at approximately $18,501,829.80. This trade represents a 2.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Erica Gessert sold 18,493 shares of the business’s stock in a transaction dated Tuesday, November 18th. The shares were sold at an average price of $16.70, for a total value of $308,833.10. Following the sale, the chief financial officer owned 237,612 shares of the company’s stock, valued at approximately $3,968,120.40. This represents a 7.22% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 159,632 shares of company stock worth $2,942,377. Insiders own 7.50% of the company’s stock.

Institutional Trading of Upwork

Large investors have recently added to or reduced their stakes in the business. Financial Gravity Companies Inc. bought a new position in Upwork in the 2nd quarter worth $5,118,000. Inspire Investing LLC bought a new position in shares of Upwork in the first quarter worth about $750,000. Aviance Capital Partners LLC purchased a new position in shares of Upwork during the 2nd quarter valued at about $619,000. Boston Partners grew its stake in shares of Upwork by 61.6% during the 2nd quarter. Boston Partners now owns 262,219 shares of the company’s stock valued at $3,524,000 after acquiring an additional 99,941 shares during the period. Finally, Acadian Asset Management LLC increased its holdings in Upwork by 24.3% in the 1st quarter. Acadian Asset Management LLC now owns 843,330 shares of the company’s stock worth $10,996,000 after acquiring an additional 164,993 shares in the last quarter. 77.71% of the stock is currently owned by institutional investors.

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.