Upwork (NASDAQ:UPWK) Trading Down 5.7% – Here’s Why

Upwork Inc. (NASDAQ:UPWK) was down 5.7% on Tuesday . The company traded as low as $12.56 and last traded at $12.5670. Approximately 1,595,912 shares were traded during mid-day trading, a decline of 57% from the average daily volume of 3,740,353 shares. The stock had previously closed at $13.33.

Analysts Set New Price Targets

Several research analysts have commented on the company. Wall Street Zen raised Upwork from a “hold” rating to a “buy” rating in a report on Saturday, February 21st. Jefferies Financial Group raised their price objective on Upwork from $22.00 to $27.00 and gave the stock a “buy” rating in a research report on Monday, January 5th. Royal Bank Of Canada cut their price objective on Upwork from $24.00 to $20.00 and set a “sector perform” rating on the stock in a research note on Tuesday, February 10th. UBS Group decreased their target price on shares of Upwork from $26.00 to $23.00 and set a “buy” rating for the company in a research report on Tuesday, February 10th. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of Upwork in a report on Wednesday, January 21st. Seven investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $22.60.

Upwork Stock Down 3.2%

The firm has a 50 day moving average price of $17.06 and a 200 day moving average price of $17.70. The stock has a market capitalization of $1.57 billion, a PE ratio of 14.30 and a beta of 1.07.

Upwork announced that its board has initiated a stock buyback program on Wednesday, February 18th that permits the company to repurchase $300.00 million in shares. This repurchase authorization permits the company to buy up to 18% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s board of directors believes its stock is undervalued.

Insider Activity at Upwork

In related news, insider Dave Bottoms sold 17,013 shares of the company’s stock in a transaction that occurred on Wednesday, February 18th. The stock was sold at an average price of $13.80, for a total value of $234,779.40. Following the transaction, the insider owned 15,994 shares in the company, valued at approximately $220,717.20. This represents a 51.54% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Erica Gessert sold 26,292 shares of the stock in a transaction on Wednesday, February 18th. The shares were sold at an average price of $13.80, for a total value of $362,829.60. Following the transaction, the chief financial officer directly owned 298,386 shares of the company’s stock, valued at approximately $4,117,726.80. This trade represents a 8.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 235,204 shares of company stock valued at $3,602,486 over the last ninety days. Corporate insiders own 7.50% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in UPWK. Accredited Wealth Management LLC increased its holdings in Upwork by 5,280.0% in the 3rd quarter. Accredited Wealth Management LLC now owns 1,345 shares of the company’s stock worth $25,000 after acquiring an additional 1,320 shares during the last quarter. Clearstead Advisors LLC boosted its position in Upwork by 998.4% during the third quarter. Clearstead Advisors LLC now owns 1,406 shares of the company’s stock worth $26,000 after purchasing an additional 1,278 shares during the period. Farther Finance Advisors LLC boosted its position in Upwork by 594.4% during the fourth quarter. Farther Finance Advisors LLC now owns 1,361 shares of the company’s stock worth $27,000 after purchasing an additional 1,165 shares during the period. Elevation Point Wealth Partners LLC purchased a new position in shares of Upwork in the second quarter worth about $30,000. Finally, Fifth Third Bancorp raised its position in shares of Upwork by 2,405.7% in the third quarter. Fifth Third Bancorp now owns 1,754 shares of the company’s stock valued at $33,000 after purchasing an additional 1,684 shares during the period. Hedge funds and other institutional investors own 77.71% of the company’s stock.

About Upwork

Upwork Inc operates a leading online talent marketplace that connects businesses with independent professionals worldwide. Through its digital platform, the company enables clients across industries—including technology, marketing, creative services and customer support—to source, hire and manage freelance talent on demand. Key features of the Upwork platform include streamlined job posting, proposal evaluation, time-tracking tools, invoicing and secure payment processing, all designed to simplify collaboration between clients and remote workers.

The company traces its roots to the merger of two pioneering freelance marketplaces, Elance (founded in 1998) and oDesk (founded in 2003), which combined in 2015 to form a unified entity.