UiPath (NYSE:PATH) Shares Down 8.5% - Should You Sell?

Key Points

• Shares fell 8.5% to about $11.10 on Tuesday with volume of ~9.22M (down 73% vs. the 34.14M average), after several firms trimmed price targets—consensus rating is “Hold” with an average target of $14.07.
• UiPath beat the latest quarter—EPS $0.30 vs. $0.25 estimate and revenue $481.1M (+13.4% YoY) vs. $464.8M estimate—but analysts still expect a negative fiscal-year EPS (-$0.17) and the stock trades at a market cap of $5.87B and a P/E of 21.11.
• Insiders sold ~607,468 shares (~$9.9M) over the last 90 days (insiders still own 23.19%), while institutional investors hold about 62.5% of the stock with some funds increasing their stakes.

UiPath, Inc. (NYSE:PATH - Get Free Report)'s stock price dropped 8.5% during trading on Tuesday . The company traded as low as $10.99 and last traded at $11.0960. Approximately 9,222,207 shares traded hands during trading, a decline of 73% from the average daily volume of 34,143,063 shares. The stock had previously closed at $12.13.

Analysts Set New Price Targets

A number of analysts recently weighed in on the stock. DA Davidson lowered their target price on shares of UiPath from $15.00 to $13.00 and set a "neutral" rating on the stock in a research note on Thursday, March 12th. Wells Fargo & Company decreased their price objective on UiPath from $14.00 to $13.00 and set an "equal weight" rating on the stock in a report on Thursday, March 12th. Royal Bank Of Canada set a $14.00 target price on UiPath in a report on Wednesday, February 11th. TD Cowen cut their target price on UiPath from $16.00 to $13.00 and set a "hold" rating for the company in a research report on Thursday, March 12th. Finally, Truist Financial decreased their price target on UiPath from $17.00 to $12.00 and set a "hold" rating on the stock in a research note on Thursday, March 12th. Three analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $14.07.

UiPath Price Performance

The firm has a 50 day simple moving average of $12.39 and a two-hundred day simple moving average of $14.07. The stock has a market cap of $5.87 billion, a price-to-earnings ratio of 21.11, a price-to-earnings-growth ratio of 1.97 and a beta of 1.09.

UiPath (NYSE:PATH - Get Free Report) last issued its quarterly earnings data on Wednesday, March 11th. The company reported $0.30 EPS for the quarter, topping the consensus estimate of $0.25 by $0.05. The business had revenue of $481.11 million for the quarter, compared to the consensus estimate of $464.81 million. UiPath had a return on equity of 5.69% and a net margin of 17.53%.The firm's revenue was up 13.4% compared to the same quarter last year. During the same quarter last year, the business posted $0.26 EPS. On average, sell-side analysts expect that UiPath, Inc. will post -0.17 earnings per share for the current fiscal year.

Insider Buying and Selling at UiPath

In other news, CEO Daniel Dines sold 45,000 shares of UiPath stock in a transaction on Monday, January 26th. The stock was sold at an average price of $15.01, for a total transaction of $675,450.00. Following the completion of the sale, the chief executive officer owned 27,893,585 shares of the company's stock, valued at approximately $418,682,710.85. This trade represents a 0.16% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Ashim Gupta sold 67,468 shares of the business's stock in a transaction dated Monday, January 5th. The shares were sold at an average price of $16.10, for a total transaction of $1,086,234.80. Following the completion of the sale, the chief financial officer directly owned 557,028 shares of the company's stock, valued at approximately $8,968,150.80. The trade was a 10.80% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 607,468 shares of company stock valued at $9,893,635 over the last 90 days. 23.19% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of PATH. Purpose Unlimited Inc. bought a new position in UiPath in the 4th quarter valued at about $115,000. Corient Private Wealth LLC raised its holdings in UiPath by 5.6% during the 4th quarter. Corient Private Wealth LLC now owns 27,283 shares of the company's stock worth $447,000 after purchasing an additional 1,455 shares during the last quarter. Avory & Company LLC acquired a new position in shares of UiPath in the 4th quarter worth approximately $275,000. Invesco Ltd. boosted its stake in shares of UiPath by 32.1% in the 4th quarter. Invesco Ltd. now owns 1,202,277 shares of the company's stock valued at $19,705,000 after purchasing an additional 292,134 shares during the last quarter. Finally, Mercer Global Advisors Inc. ADV lifted its stake in shares of UiPath by 31.4% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 38,330 shares of the company's stock valued at $619,000 after purchasing an additional 9,151 shares during the period. Institutional investors and hedge funds 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. Its platform's embedded AI, ML, and NLP capabilities improve decisioning and information processing; emulate human behavior allows organizations to address a myriad of use cases; emulate human behavior allows organizations to address a myriad of use cases; multi-tenant platform enterprise deployment with security and governance and Automation Cloud, which enables customers to begin automating without the need to provision infrastructure, install applications, or perform additional configurations; intuitive interface and low-code, drag-and-drop functionality; signed to enable people and automations to work together; and tracks, measures, and forecasts the performance of automations, enables customers to gain powerful insights and generate key performance indicators with actionable metric.

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