Upwork Target of Unusually Large Options Trading (NASDAQ:UPWK)

Key Points

• Upwork Inc. experienced a significant increase in options trading, with traders purchasing 3,265 put options, a rise of 70% compared to the average daily volume.
• Insider trading activity includes CEO Hayden Brown selling 60,000 shares and insider Dave Bottoms selling 2,060 shares, marking notable decreases in their ownership stakes.
• Upwork announced a $100 million stock repurchase plan, indicating confidence in the undervaluation of its shares following a quarter that beat earnings expectations.

Upwork Inc. (NASDAQ:UPWK - Get Free Report) was the recipient of some unusual options trading on Wednesday. Investors acquired 3,265 put options on the stock. This is an increase of 70% compared to the average daily volume of 1,915 put options.

Analysts Set New Price Targets

A number of equities research analysts have commented on the company. JMP Securities reiterated a "market outperform" rating and issued a $20.00 price target on shares of Upwork in a research report on Friday, September 12th. Wall Street Zen lowered Upwork from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 9th. Finally, Royal Bank Of Canada reiterated a "sector perform" rating and issued a $18.00 price target on shares of Upwork in a research report on Monday, June 2nd. Eight investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, Upwork presently has an average rating of "Moderate Buy" and a consensus target price of $18.67.

Upwork Stock Up 8.0%

UPWK stock traded up $1.46 during trading on Thursday, reaching $19.60. 6,312,781 shares of the stock were exchanged, compared to its average volume of 2,825,947. The firm's 50 day moving average is $14.38 and its 200 day moving average is $14.18. Upwork has a twelve month low of $9.93 and a twelve month high of $19.74. The company has a current ratio of 3.36, a quick ratio of 3.36 and a debt-to-equity ratio of 0.59. The firm has a market cap of $2.60 billion, a P/E ratio of 11.26 and a beta of 1.43.

Upwork (NASDAQ:UPWK - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The company reported $0.35 earnings per share for the quarter, topping analysts' consensus estimates of $0.26 by $0.09. The business had revenue of $194.94 million for the quarter, compared to the consensus estimate 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% on a year-over-year basis. During the same period in the prior year, the business earned $0.26 EPS. As a group, research analysts forecast that Upwork will post 0.84 EPS for the current year.

Upwork declared that its Board of Directors has authorized a stock repurchase plan on Wednesday, September 3rd that permits the company to buyback $100.00 million in shares. This buyback authorization permits the company to purchase up to 4.9% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's management believes its shares are undervalued.

Insider Activity

In other news, CEO Hayden Brown sold 60,000 shares of Upwork stock in a transaction 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 transaction, the chief executive officer owned 1,093,485 shares in the company, valued at approximately $15,046,353.60. This trade represents a 5.20% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Dave Bottoms sold 2,060 shares of Upwork stock in a transaction on Monday, August 18th. The shares were sold at an average price of $13.84, for a total value of $28,510.40. Following the completion of the transaction, the insider owned 2,035 shares in the company, valued at approximately $28,164.40. The trade was a 50.31% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 113,184 shares of company stock worth $1,560,387. Insiders own 7.50% of the company's stock.

Institutional Trading of Upwork

Large investors have recently bought and sold shares of the company. Elevation Point Wealth Partners LLC bought a new position in shares of Upwork in the second quarter worth $30,000. LRI Investments LLC boosted its holdings in shares of Upwork by 415.9% in the second quarter. LRI Investments LLC now owns 2,528 shares of the company's stock worth $34,000 after acquiring an additional 2,038 shares during the period. EMC Capital Management bought a new position in shares of Upwork in the second quarter worth $45,000. EverSource Wealth Advisors LLC boosted its holdings in shares of Upwork by 19,361.1% in the second quarter. EverSource Wealth Advisors LLC now owns 3,503 shares of the company's stock worth $47,000 after acquiring an additional 3,485 shares during the period. Finally, IFP Advisors Inc boosted its holdings in shares of Upwork by 3,492.8% in the first quarter. IFP Advisors Inc now owns 3,988 shares of the company's stock worth $52,000 after acquiring an additional 3,877 shares during the period. 77.71% of the stock is 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.