Upwork (NASDAQ:UPWK) Shares Gap Up on Analyst Upgrade

Upwork Inc. (NASDAQ:UPWK) shares gapped up before the market opened on Tuesday after Needham & Company LLC raised their price target on the stock from $19.00 to $25.00. The stock had previously closed at $15.63, but opened at $18.83. Needham & Company LLC currently has a buy rating on the stock. Upwork shares last traded at $16.7030, with a volume of 3,137,828 shares changing hands.

A number of other equities analysts have also weighed in on the stock. Jefferies Financial Group reiterated a “buy” rating and set a $22.00 target price on shares of Upwork in a research report on Tuesday. Scotiabank set a $17.00 target price on shares of Upwork and gave the stock a “sector perform” rating in a research report on Tuesday. Weiss Ratings reiterated a “hold (c+)” rating on shares of Upwork in a research report on Wednesday, October 8th. Wall Street Zen upgraded shares of Upwork from a “hold” rating to a “buy” rating in a research report on Sunday, September 28th. Finally, UBS Group set a $21.00 target price on shares of Upwork and gave the stock a “buy” rating in a research report on Tuesday, October 28th. Eight investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $20.50.

Insider Transactions at Upwork

In other news, CEO Hayden Brown sold 20,000 shares of the stock in a transaction dated Friday, September 19th. The shares were sold at an average price of $20.00, for a total value of $400,000.00. Following the sale, the chief executive officer directly owned 1,082,358 shares of the company’s stock, valued at approximately $21,647,160. This represents a 1.81% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Dave Bottoms sold 10,014 shares of the stock in a transaction dated Friday, September 19th. The stock was sold at an average price of $19.96, for a total transaction of $199,879.44. Following the completion of the sale, the insider directly owned 345 shares in the company, valued at approximately $6,886.20. The trade was a 96.67% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 222,576 shares of company stock valued at $3,670,318. 7.60% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Upwork

Institutional investors and hedge funds have recently modified their holdings of the company. Elevation Point Wealth Partners LLC purchased a new stake in shares of Upwork in the second quarter worth about $30,000. LRI Investments LLC raised its stake in Upwork by 415.9% in the second quarter. LRI Investments LLC now owns 2,528 shares of the company’s stock valued at $34,000 after purchasing an additional 2,038 shares in the last quarter. EMC Capital Management purchased a new stake in Upwork in the second quarter valued at approximately $45,000. EverSource Wealth Advisors LLC raised its stake in Upwork by 19,361.1% in the second quarter. EverSource Wealth Advisors LLC now owns 3,503 shares of the company’s stock valued at $47,000 after purchasing an additional 3,485 shares in the last quarter. Finally, IFP Advisors Inc raised its stake in Upwork by 3,492.8% in the first quarter. IFP Advisors Inc now owns 3,988 shares of the company’s stock valued at $52,000 after purchasing an additional 3,877 shares in the last quarter. 77.71% of the stock is owned by hedge funds and other institutional investors.

Upwork Price Performance

The business’s 50 day moving average is $17.04 and its two-hundred day moving average is $15.16. The firm has a market capitalization of $2.25 billion, a PE ratio of 9.74 and a beta of 1.57. The company has a debt-to-equity ratio of 0.59, a current ratio of 3.36 and a quick ratio of 3.36.

Upwork (NASDAQ:UPWK) last announced 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 company had revenue of ($387.62) million during the quarter, compared to analysts’ expectations of $193.33 million. Upwork had a net margin of 31.75% and a return on equity of 44.83%. The company’s revenue for the quarter was up 4.1% compared to the same quarter last year. During the same period in the prior year, the business earned $0.30 earnings per share. Upwork has set its FY 2025 guidance at 1.350-1.370 EPS. Q4 2025 guidance at 0.310-0.330 EPS. As a group, research analysts anticipate that Upwork Inc. will post 0.84 EPS for the current year.

Upwork announced that its Board of Directors has authorized a share repurchase plan on Wednesday, September 3rd that authorizes the company to repurchase $100.00 million in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 4.9% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board of directors believes its stock is undervalued.

Upwork Company Profile

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.