Upwork (NASDAQ:UPWK) Trading Down 5% – What’s Next?

Upwork Inc. (NASDAQ:UPWK) was down 5% on Friday . The company traded as low as $16.02 and last traded at $15.95. Approximately 1,135,297 shares traded hands during mid-day trading, a decline of 55% from the average daily volume of 2,509,279 shares. The stock had previously closed at $16.78.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on UPWK shares. JMP Securities upped their price target on Upwork from $18.00 to $20.00 and gave the stock a “market outperform” rating in a report on Friday, May 16th. Royal Bank Of Canada reaffirmed a “sector perform” rating and issued a $18.00 price target on shares of Upwork in a report on Monday, June 2nd. Citigroup reaffirmed an “outperform” rating on shares of Upwork in a report on Friday, May 16th. Finally, Wall Street Zen cut Upwork from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 9th. Eight research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $18.67.

Upwork Stock Down 3.5%

The company has a market capitalization of $2.15 billion, a PE ratio of 9.30 and a beta of 1.43. The company has a quick ratio of 3.36, a current ratio of 3.36 and a debt-to-equity ratio of 0.59. The firm has a 50-day moving average of $13.76 and a two-hundred day moving average of $14.09.

Upwork (NASDAQ:UPWK) last issued its quarterly earnings data on Wednesday, August 6th. The company reported $0.35 earnings per share for the quarter, topping the consensus estimate of $0.26 by $0.09. The company had revenue of $194.94 million during the quarter, compared to analyst estimates of $187.56 million. Upwork had a return on equity of 44.83% and a net margin of 31.75%.The firm’s revenue for the quarter was up .9% compared to the same quarter last year. During the same period in the prior year, the business posted $0.26 earnings per share. Equities research analysts predict that Upwork Inc. will post 0.84 earnings per share for the current fiscal year.

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

Insiders Place Their Bets

In related news, CEO Hayden Brown sold 60,000 shares of the stock in a transaction that occurred on Friday, August 15th. The stock was sold at an average price of $13.76, for a total value of $825,600.00. Following the completion of the transaction, the chief executive officer directly 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 sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Erica Gessert sold 19,036 shares of the stock in a transaction that occurred on Monday, August 18th. The stock was sold at an average price of $13.84, for a total value of $263,458.24. Following the completion of the transaction, the chief financial officer owned 209,202 shares of the company’s stock, valued at $2,895,355.68. The trade was a 8.34% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 159,608 shares of company stock valued at $2,187,556. 7.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. LSV Asset Management lifted its stake in Upwork by 364.5% during the first quarter. LSV Asset Management now owns 5,351,406 shares of the company’s stock worth $69,836,000 after purchasing an additional 4,199,244 shares in the last quarter. Nuveen LLC acquired a new position in Upwork during the first quarter worth $22,079,000. Allianz Asset Management GmbH lifted its stake in Upwork by 200.0% during the first quarter. Allianz Asset Management GmbH now owns 2,237,616 shares of the company’s stock worth $29,201,000 after purchasing an additional 1,491,701 shares in the last quarter. T. Rowe Price Investment Management Inc. lifted its stake in Upwork by 41.1% during the first quarter. T. Rowe Price Investment Management Inc. now owns 4,660,511 shares of the company’s stock worth $60,820,000 after purchasing an additional 1,357,476 shares in the last quarter. Finally, Fiera Capital Corp acquired a new position in Upwork during the first quarter worth $13,713,000. 77.71% of the stock is currently owned by hedge funds and other 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.