UiPath (NYSE:PATH) Shares Gap Down – What’s Next?

UiPath, Inc. (NYSE:PATH)’s share price gapped down before the market opened on Friday . The stock had previously closed at $18.22, but opened at $16.24. UiPath shares last traded at $15.6580, with a volume of 18,930,329 shares.

UiPath News Summary

Here are the key news stories impacting UiPath this week:

• Positive Sentiment: UiPath reported fiscal Q2 revenue of approximately $410.3 million, up 13.3% year over year and above the $397.8 million analyst estimate. Non-GAAP earnings of $0.15 per share matched expectations. UiPath Reports Second Quarter Fiscal 2027 Financial Results
• Positive Sentiment: The company raised its fiscal 2027 revenue outlook to approximately $1.789 billion-$1.794 billion and guided for about $445 million in non-GAAP operating income. Third-quarter revenue guidance of $440 million-$445 million is slightly above consensus. UiPath Fiscal 2027 Guidance
• Positive Sentiment: Annual recurring revenue increased 12% to $1.938 billion, while UiPath reported a fourth consecutive quarter of GAAP profitability. Management also emphasized that AI is expanding enterprise automation opportunities and contributing to larger deals. UiPath Posts Revenue Beat
• Neutral Sentiment: UiPath announced executive leadership changes and appointed a new board member. The changes could support its next phase of growth, but may create near-term uncertainty during the transition. UiPath Leadership Changes
• Negative Sentiment: The revenue beat and guidance increase were not large enough to satisfy investors after PATH’s sharp August rally. Concerns remain that 12% growth is modest relative to faster-growing AI software companies, while artificial intelligence could disrupt traditional automation demand. BMO Capital Markets raised its price target from $13 to $18 but maintained a Market Perform rating, implying limited upside from the current level. Why PATH Stock Is Tumbling

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on the company. Wells Fargo & Company increased their price target on UiPath from $13.00 to $15.00 and gave the company an “equal weight” rating in a report on Friday. Oppenheimer reissued a “market perform” rating on shares of UiPath in a research note on Friday. Royal Bank Of Canada upped their target price on UiPath from $15.00 to $17.00 and gave the company a “sector perform” rating in a report on Friday. DA Davidson raised their target price on UiPath from $12.00 to $16.00 and gave the stock a “neutral” rating in a research note on Friday. Finally, TD Cowen lifted their price target on UiPath from $13.00 to $16.00 and gave the stock a “hold” rating in a report on Friday. Two equities research analysts have rated the stock with a Buy rating, sixteen have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $15.73.

UiPath Stock Performance

The company has a 50 day moving average of $13.82 and a 200-day moving average of $11.92. The stock has a market cap of $8.10 billion, a price-to-earnings ratio of 26.39, a price-to-earnings-growth ratio of 2.16 and a beta of 1.02.

UiPath (NYSE:PATH) last released its earnings results on Thursday, September 3rd. The company reported $0.15 earnings per share for the quarter, meeting the consensus estimate of $0.15. The company had revenue of $410.26 million during the quarter, compared to the consensus estimate of $397.77 million. UiPath had a return on equity of 7.92% and a net margin of 19.58%.UiPath’s revenue was up 13.3% compared to the same quarter last year. During the same period in the previous year, the company posted $0.15 EPS. On average, research analysts anticipate that UiPath, Inc. will post 0.4 EPS for the current year.

Insiders Place Their Bets

In other UiPath news, CEO Daniel Dines sold 1,402,347 shares of the stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $16.07, for a total value of $22,535,716.29. Following the sale, the chief executive officer owned 26,491,238 shares of the company’s stock, valued at $425,714,194.66. This trade represents a 5.03% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 22.44% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On UiPath

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Norges Bank purchased a new stake in shares of UiPath during the fourth quarter worth approximately $120,176,000. State Street Corp lifted its stake in UiPath by 66.4% in the fourth quarter. State Street Corp now owns 13,004,786 shares of the company’s stock worth $213,148,000 after acquiring an additional 5,189,438 shares during the last quarter. AQR Capital Management LLC grew its holdings in UiPath by 76.0% during the 2nd quarter. AQR Capital Management LLC now owns 11,407,569 shares of the company’s stock worth $145,732,000 after acquiring an additional 4,926,341 shares in the last quarter. California State Teachers Retirement System grew its holdings in UiPath by 957.1% during the 2nd quarter. California State Teachers Retirement System now owns 5,248,536 shares of the company’s stock worth $57,052,000 after acquiring an additional 4,752,040 shares in the last quarter. Finally, Morgan Stanley increased its position in shares of UiPath by 54.0% in the 4th quarter. Morgan Stanley now owns 9,310,304 shares of the company’s stock valued at $152,596,000 after purchasing an additional 3,262,930 shares during the last quarter. 62.50% of the stock is owned by institutional investors and hedge funds.

About UiPath

UiPath Inc provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, the United Kingdom, the Netherlands, and internationally. The company offers a suite of interrelated software to build, manage, run, engage, measure, and govern automation within the organization. Its platform's embedded AI, ML, and NLP capabilities improve decisioning and information processing; emulate human behavior allows organizations to address a myriad of use cases; emulate human behavior allows organizations to address a myriad of use cases; multi-tenant platform enterprise deployment with security and governance and Automation Cloud, which enables customers to begin automating without the need to provision infrastructure, install applications, or perform additional configurations; intuitive interface and low-code, drag-and-drop functionality; signed to enable people and automations to work together; and tracks, measures, and forecasts the performance of automations, enables customers to gain powerful insights and generate key performance indicators with actionable metric.