Upwork Sees Unusually High Options Volume (NASDAQ:UPWK)

Upwork Inc. (NASDAQ:UPWK) saw some unusual options trading on Tuesday. Stock investors bought 4,501 call options on the company. This is an increase of 207% compared to the typical volume of 1,464 call options.

Insider Activity at Upwork

In related news, CFO Erica Gessert sold 9,336 shares of Upwork stock in a transaction on Friday, September 18th. The stock was sold at an average price of $8.45, for a total transaction of $78,889.20. Following the sale, the chief financial officer directly owned 373,586 shares in the company, valued at approximately $3,156,801.70. This trade represents a 2.44% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Anthony Kappus sold 45,732 shares of Upwork stock in a transaction on Friday, September 18th. The stock was sold at an average price of $8.45, for a total value of $386,435.40. Following the sale, the chief operating officer owned 76,342 shares in the company, valued at $645,089.90. This trade represents a 37.46% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 178,868 shares of company stock valued at $1,509,462. 4.90% of the stock is owned by insiders.

Hedge Funds Weigh In On Upwork

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Covestor Ltd raised its stake in shares of Upwork by 40.7% during the 3rd quarter. Covestor Ltd now owns 5,356 shares of the company’s stock valued at $44,000 after purchasing an additional 1,550 shares during the period. Mirae Asset Global Investments Co. Ltd. bought a new position in Upwork in the 3rd quarter valued at $687,000. Lakewood Asset Management LLC purchased a new position in shares of Upwork during the 3rd quarter valued at $259,000. SBI Securities Co. Ltd. grew its position in shares of Upwork by 263.4% during the 3rd quarter. SBI Securities Co. Ltd. now owns 13,080 shares of the company’s stock valued at $107,000 after purchasing an additional 9,481 shares in the last quarter. Finally, Robeco Institutional Asset Management B.V. increased its holdings in shares of Upwork by 1.3% in the third quarter. Robeco Institutional Asset Management B.V. now owns 471,637 shares of the company’s stock worth $3,849,000 after purchasing an additional 6,194 shares during the period. Institutional investors own 77.71% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on the company. Scotiabank lifted their target price on Upwork from $8.00 to $10.00 and gave the stock a “sector perform” rating in a research note on Tuesday. Needham & Company LLC increased their price target on shares of Upwork from $11.00 to $13.00 and gave the company a “buy” rating in a research report on Tuesday. Weiss Ratings restated a “sell (d+)” rating on shares of Upwork in a research report on Tuesday, October 27th. Canaccord Genuity Group decreased their price objective on shares of Upwork from $10.00 to $9.00 and set a “hold” rating for the company in a report on Wednesday, August 12th. Finally, The Goldman Sachs Group set a $11.50 price objective on shares of Upwork in a research report on Tuesday, August 11th. Three investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $13.45.

Key Headlines Impacting Upwork

Here are the key news stories impacting Upwork this week:

• Positive Sentiment: Q3 results exceeded expectations. Upwork reported adjusted EPS of $0.40 versus the $0.31 consensus estimate and revenue of $185.6 million versus expectations of $180.2 million. The results helped drive the recent post-earnings rebound. Upwork Q3 earnings report
• Positive Sentiment: New products and enterprise expansion could support growth. Upwork launched the public beta of Upwork Now, designed to help clients hire experts within minutes, while its Lifted business acquired WorkMotion to expand employer-of-record capabilities. Business Plus revenue also reportedly grew 120% year over year in Q3. Upwork Now announcement
• Positive Sentiment: Full-year profitability guidance improved relative to expectations. Upwork forecasts FY 2026 EPS of $1.45-$1.47, above the $1.40 consensus estimate, while revenue guidance of $742 million-$750 million is broadly in line with expectations.
• Neutral Sentiment: AI remains a strategic focus. Management is embedding Upwork’s freelance marketplace into leading AI tools and developing services for clients and talent as AI changes how work is sourced and completed. The initiatives may create longer-term opportunities, but their financial impact remains uncertain. Upwork AI strategy
• Negative Sentiment: Fourth-quarter guidance was weaker than expected. The company projects EPS of $0.30-$0.32 versus the $0.35 consensus and revenue of $169 million-$177 million versus $174.7 million expected, raising concerns about near-term growth and demand.
• Negative Sentiment: Analysts remain cautious about valuation and long-term relevance. Royal Bank of Canada reaffirmed its “sector perform” rating but set an $8.00 target, below the recent trading level. A Seeking Alpha analysis also maintained a “Sell” view, citing revenue contraction and secular competitive headwinds. Royal Bank of Canada rating

Upwork Stock Up 6.9%

Upwork stock traded up $0.67 during trading on Tuesday, hitting $10.39. The stock had a trading volume of 3,426,465 shares, compared to its average volume of 3,545,602. Upwork has a 1 year low of $7.44 and a 1 year high of $22.84. The stock’s 50 day moving average is $8.66 and its two-hundred day moving average is $10.65. The stock has a market cap of $1.30 billion, a price-to-earnings ratio of 13.42 and a beta of 1.06.

Upwork (NASDAQ:UPWK) last announced its quarterly earnings data on Monday, November 2nd. The company reported $0.40 earnings per share for the quarter, beating the consensus estimate of $0.31 by $0.09. Upwork had a return on equity of 16.70% and a net margin of 12.94%. The business had revenue of $185.60 million during the quarter, compared to analyst estimates of $180.22 million.

About Upwork

Upwork Inc operates a global work marketplace that connects businesses with independent professionals and agencies. Clients use the platform to find, evaluate, hire and manage talent for projects across areas such as software development, design, marketing, writing, consulting, customer support and administrative services.

The company provides tools for talent discovery, project collaboration, communications, time tracking, contract management and payments. Its offerings serve both individual clients and larger organizations, with features designed to support recurring engagements, contingent-work programs and enterprise talent management.

Upwork was formed in 2015 through the merger of Elance and oDesk, two online freelance-work platforms, and began trading publicly on the Nasdaq stock exchange in 2018.