UiPath (NYSE:PATH) Shares Gap Down – Time to Sell?

UiPath, Inc. (NYSE:PATH) shares gapped down prior to trading on Friday . The stock had previously closed at $11.58, but opened at $10.70. UiPath shares last traded at $11.27, with a volume of 14,414,192 shares traded.

Key UiPath News

Here are the key news stories impacting UiPath this week:

• Positive Sentiment: Needham & Company reaffirmed its Buy rating on UiPath and set a $15 price target, implying meaningful upside from current levels. Benzinga article
• Positive Sentiment: UiPath reported Q1 revenue of $418.4 million, above Wall Street estimates, with sales rising 17.3% year over year, signaling continued demand for its automation software and AI products. Yahoo Finance article
• Positive Sentiment: The company also said it achieved first-time GAAP profitability, a notable milestone that may improve investor confidence in UiPath’s ability to scale profitably. Yahoo Finance article
• Positive Sentiment: UiPath’s updated guidance for Q2 revenue of $395 million to $400 million and full-year revenue of about $1.8 billion was broadly in line with expectations, reducing concern over a near-term slowdown. Business Wire article
• Positive Sentiment: Trading activity also looked bullish, with unusually heavy call-option buying and reports that shares were rising ahead of earnings, suggesting traders were positioning for upside. American Banking News article
• Neutral Sentiment: UiPath’s Q1 non-GAAP EPS of $0.15 matched expectations, so the stock reaction is being driven more by revenue growth, profitability progress, and guidance than by a major earnings beat. Yahoo Finance article

Wall Street Analysts Forecast Growth

Several research firms have recently commented on PATH. DA Davidson lowered their target price on shares of UiPath from $15.00 to $13.00 and set a “neutral” rating on the stock in a report on Thursday, March 12th. Morgan Stanley raised shares of UiPath from an “equal weight” rating to a “positive” rating in a research note on Friday, March 13th. UBS Group reduced their target price on shares of UiPath from $17.00 to $13.00 and set a “neutral” rating on the stock in a research note on Thursday, March 12th. Truist Financial reduced their target price on shares of UiPath from $17.00 to $12.00 and set a “hold” rating on the stock in a research note on Thursday, March 12th. Finally, Mizuho reduced their price target on shares of UiPath from $15.00 to $12.00 and set a “neutral” rating on the stock in a research note on Thursday, March 12th. Three analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, UiPath currently has an average rating of “Hold” and an average price target of $14.07.

UiPath Stock Performance

The company has a market capitalization of $6.18 billion, a P/E ratio of 22.43, a PEG ratio of 1.83 and a beta of 0.91. The company’s fifty day simple moving average is $10.74 and its 200-day simple moving average is $12.91.

UiPath (NYSE:PATH) last released its quarterly earnings results on Thursday, May 28th. The company reported $0.15 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.15. UiPath had a net margin of 17.53% and a return on equity of 5.69%. The business had revenue of $418.38 million for the quarter, compared to analysts’ expectations of $397.54 million. During the same period last year, the business earned $0.11 EPS. The company’s revenue was up 17.3% compared to the same quarter last year. On average, sell-side analysts predict that UiPath, Inc. will post 0.32 EPS for the current year.

Institutional Trading of UiPath

A number of institutional investors have recently bought and sold shares of the stock. Sumitomo Mitsui Trust Group Inc. increased its stake in UiPath by 1.9% in the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 37,871 shares of the company’s stock valued at $621,000 after buying an additional 720 shares during the period. Meeder Advisory Services Inc. raised its holdings in UiPath by 7.6% during the fourth quarter. Meeder Advisory Services Inc. now owns 12,132 shares of the company’s stock worth $199,000 after purchasing an additional 861 shares in the last quarter. Green Alpha Advisors LLC raised its holdings in UiPath by 3.4% during the fourth quarter. Green Alpha Advisors LLC now owns 29,519 shares of the company’s stock worth $484,000 after purchasing an additional 973 shares in the last quarter. Pasadena Private Wealth LLC raised its holdings in UiPath by 9.0% during the first quarter. Pasadena Private Wealth LLC now owns 12,750 shares of the company’s stock worth $142,000 after purchasing an additional 1,050 shares in the last quarter. Finally, Wealthfront Advisers LLC raised its holdings in UiPath by 3.6% during the third quarter. Wealthfront Advisers LLC now owns 32,886 shares of the company’s stock worth $440,000 after purchasing an additional 1,149 shares in the last quarter. 62.50% of the stock is currently owned by institutional investors and hedge funds.

UiPath Company Profile

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.