Upwork (NASDAQ:UPWK) Stock Sees Unusually High Call Option Buying

Upwork Inc. (NASDAQ:UPWK) was the recipient of unusually large options trading on Tuesday. Stock traders bought 4,501 call options on the stock. This represents an increase of approximately 207% compared to the average volume of 1,464 call options.

Upwork Trading Up 2.2%

Shares of Upwork stock opened at $9.93 on Wednesday. The company’s fifty day simple moving average is $8.69 and its two-hundred day simple moving average is $10.60. The company has a market cap of $1.24 billion, a P/E ratio of 12.26 and a beta of 1.03. Upwork has a 12-month low of $7.44 and a 12-month high of $22.84.

Upwork (NASDAQ:UPWK) last issued its quarterly earnings data on Monday, November 2nd. The company reported $0.40 EPS for the quarter, topping the consensus estimate of $0.31 by $0.09. Upwork had a net margin of 13.53% and a return on equity of 17.28%. The business had revenue of $185.60 million during the quarter, compared to analyst estimates of $180.22 million.

Insider Activity

In related news, CFO Erica Gessert sold 9,336 shares of the firm’s stock in a transaction that occurred 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 transaction, the chief financial officer directly owned 373,586 shares in the company, valued at $3,156,801.70. This trade represents a 2.44% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Hayden Brown sold 23,893 shares of Upwork stock in a transaction that occurred on Friday, September 18th. The stock was sold at an average price of $8.45, for a total value of $201,895.85. Following the completion of the transaction, the chief executive officer directly owned 793,593 shares in the company, valued at $6,705,860.85. This trade represents a 2.92% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 178,868 shares of company stock valued at $1,509,462. Insiders own 4.90% of the company’s stock.

Institutional Trading of Upwork

Several institutional investors and hedge funds have recently bought and sold shares of UPWK. Rice Hall James & Associates LLC purchased a new stake in Upwork in the second quarter worth $23,214,000. Dimensional Fund Advisors LP raised its holdings in Upwork by 26.5% in the first quarter. Dimensional Fund Advisors LP now owns 3,715,616 shares of the company’s stock worth $40,720,000 after purchasing an additional 779,506 shares in the last quarter. Bank of New York Mellon Corp bought a new position in Upwork in the second quarter worth $6,156,000. Pacer Advisors Inc. raised its holdings in Upwork by 7,074.5% in the first quarter. Pacer Advisors Inc. now owns 726,780 shares of the company’s stock worth $7,966,000 after purchasing an additional 716,650 shares in the last quarter. Finally, Bank of America Corp DE purchased a new position in Upwork during the second quarter valued at $5,886,000. 77.71% of the stock is currently owned by hedge funds and other institutional investors.

Upwork News Summary

Here are the key news stories impacting Upwork this week:

• Positive Sentiment: Upwork reported Q3 adjusted EPS of $0.40, above the $0.31 consensus, and revenue of $185.6 million versus expectations of $180.2 million. The earnings beat helped drive the recent post-results rally. Q3 earnings results
• Positive Sentiment: Full-year 2026 EPS guidance of $1.45–$1.47 topped the $1.40 consensus; revenue guidance of $742–$750 million was broadly in line with the $742.1 million estimate.
• Positive Sentiment: Upwork launched Upwork Now in public beta, designed to help clients hire experts quickly. The company is also expanding its enterprise reach through Lifted’s acquisition of WorkMotion; Business Plus revenue grew 120% year over year in Q3. Upwork Now announcement
• Neutral Sentiment: Analyst views were mixed: UBS raised its target from $9 to $10 while retaining a Neutral rating, whereas RBC maintained Sector Perform with an $8 target. Unusually high call-option activity may reflect increased speculative interest, but does not establish a clear direction.
• Negative Sentiment: Q4 EPS guidance of $0.30–$0.32 was below the $0.35 consensus. Revenue guidance of $169–$177 million brackets the $174.7 million estimate, indicating a potential near-term earnings headwind.
• Negative Sentiment: A bearish commentary argued that revenue contraction and longer-term competitive or industry headwinds may undermine the durability of the recovery, despite improved guidance. Bearish Upwork analysis

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on UPWK shares. The Goldman Sachs Group set a $11.50 target price on shares of Upwork in a report on Tuesday, August 11th. Royal Bank Of Canada reiterated a “sector perform” rating and set a $8.00 price target on shares of Upwork in a report on Tuesday. Canaccord Genuity Group dropped their price target on shares of Upwork from $10.00 to $9.00 and set a “hold” rating for the company in a research report on Wednesday, August 12th. BTIG Research reissued a “neutral” rating on shares of Upwork in a report on Tuesday. Finally, Weiss Ratings reissued a “sell (d+)” rating on shares of Upwork in a report on Tuesday, October 27th. Three equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Upwork currently has a consensus rating of “Hold” and an average price target of $13.55.

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.