UiPath (NYSE:PATH) Rating Lowered to Buy at Wall Street Zen

Key Points

• UiPath has been downgraded from a "strong-buy" to a "buy" rating by Wall Street Zen, impacting investor perception of the stock.
• Despite recent earnings exceeding estimates, the company has faced a negative return on equity and a consensus rating of "Hold" from analysts.
• Insider trading activities included significant stock sales by CEO Daniel Dines and CFO Ashim Gupta, indicating possible concerns among top executives about the company's future performance.

UiPath (NYSE:PATH - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research note issued on Sunday.

Other equities analysts also recently issued research reports about the company. Needham & Company LLC reiterated a "hold" rating on shares of UiPath in a research report on Friday, May 30th. Royal Bank Of Canada upped their price target on shares of UiPath from $13.00 to $15.00 and gave the stock a "sector perform" rating in a research report on Friday, May 30th. Scotiabank increased their price objective on shares of UiPath from $12.00 to $13.00 and gave the stock a "sector perform" rating in a report on Friday, May 30th. BMO Capital Markets increased their price target on shares of UiPath from $11.50 to $15.50 and gave the company a "market perform" rating in a research note on Friday, May 30th. Finally, Truist Financial raised their price target on shares of UiPath from $12.00 to $13.00 and gave the company a "hold" rating in a report on Friday, May 30th. Two analysts have rated the stock with a sell rating, twelve have issued a hold rating and three have issued a buy rating to the stock. Based on data from MarketBeat, UiPath presently has an average rating of "Hold" and an average price target of $13.83.

UiPath Stock Performance

Shares of PATH stock traded down $0.03 during mid-day trading on Friday, reaching $11.20. The company's stock had a trading volume of 4,061,854 shares, compared to its average volume of 11,762,588. The firm's 50-day moving average is $12.58 and its two-hundred day moving average is $12.35. UiPath has a 1-year low of $9.38 and a 1-year high of $15.93. The company has a market cap of $5.99 billion, a P/E ratio of -93.20, a PEG ratio of 14.86 and a beta of 1.03.

UiPath (NYSE:PATH - Get Free Report) last announced its quarterly earnings results on Thursday, May 29th. The company reported $0.11 earnings per share for the quarter, beating analysts' consensus estimates of $0.10 by $0.01. UiPath had a negative return on equity of 3.05% and a negative net margin of 4.65%. The firm had revenue of $356.62 million for the quarter, compared to analysts' expectations of $332.17 million. During the same period in the prior year, the business posted $0.13 earnings per share. The business's revenue was up 6.4% compared to the same quarter last year. Sell-side analysts anticipate that UiPath will post -0.17 EPS for the current year.

Insider Transactions at UiPath

In other news, CFO Ashim Gupta sold 56,322 shares of the business's stock in a transaction on Wednesday, July 2nd. The shares were sold at an average price of $12.72, for a total value of $716,415.84. Following the sale, the chief financial officer owned 859,991 shares of the company's stock, valued at $10,939,085.52. The trade was a 6.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Daniel Dines sold 45,000 shares of the firm's stock in a transaction on Wednesday, July 16th. The shares were sold at an average price of $12.43, for a total transaction of $559,350.00. Following the completion of the transaction, the chief executive officer directly owned 5,058,376 shares of the company's stock, valued at approximately $62,875,613.68. This trade represents a 0.88% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 831,310 shares of company stock valued at $10,428,922. 23.19% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On UiPath

Institutional investors and hedge funds have recently made changes to their positions in the stock. AdvisorNet Financial Inc raised its position in UiPath by 320.4% during the second quarter. AdvisorNet Financial Inc now owns 2,476 shares of the company's stock worth $32,000 after acquiring an additional 1,887 shares in the last quarter. Versant Capital Management Inc raised its stake in UiPath by 198.6% in the first quarter. Versant Capital Management Inc now owns 2,962 shares of the company's stock valued at $31,000 after buying an additional 1,970 shares during the period. GAMMA Investing LLC increased its holdings in shares of UiPath by 48.0% during the 2nd quarter. GAMMA Investing LLC now owns 2,989 shares of the company's stock worth $38,000 after acquiring an additional 969 shares during the last quarter. IFP Advisors Inc lifted its holdings in UiPath by 508.0% during the 2nd quarter. IFP Advisors Inc now owns 3,283 shares of the company's stock valued at $42,000 after purchasing an additional 2,743 shares during the last quarter. Finally, CX Institutional bought a new position in shares of UiPath in the first quarter valued at about $36,000. Institutional investors own 62.50% of the company's stock.

UiPath Company Profile

UiPath Inc provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, the United Kingdom, the Netherlands, and internationally. The company offers a suite of interrelated software to build, manage, run, engage, measure, and govern automation within the organization.