UiPath (NYSE:PATH) Shares Gap Down - Time to Sell?

Key Points

• UiPath shares gapped down at the open, falling from a prior close of $11.58 to an opening price of $10.70 before recovering to around $11.27.
• The company’s latest quarter showed solid operating momentum, with revenue of $418.4 million, up 17.3% year over year and above estimates, while non-GAAP EPS matched expectations at $0.15.
• UiPath also reported its first-ever GAAP profit and issued guidance that was broadly in line with expectations, but Wall Street remains cautious overall with a Hold consensus and an average target price of $14.07.

UiPath, Inc. (NYSE:PATH - Get Free Report)'s stock price gapped down before the market opened on Friday . The stock had previously closed at $11.58, but opened at $10.70. UiPath shares last traded at $11.27, with a volume of 14,414,192 shares traded.

Key Headlines Impacting UiPath

Here are the key news stories impacting UiPath this week:

• Positive Sentiment: Needham & Company reaffirmed its Buy rating on UiPath and set a $15 price target, implying meaningful upside from current levels. Benzinga article
• Positive Sentiment: UiPath reported Q1 revenue of $418.4 million, above Wall Street estimates, with sales rising 17.3% year over year, signaling continued demand for its automation software and AI products. Yahoo Finance article
• Positive Sentiment: The company also said it achieved first-time GAAP profitability, a notable milestone that may improve investor confidence in UiPath’s ability to scale profitably. Yahoo Finance article
• Positive Sentiment: UiPath’s updated guidance for Q2 revenue of $395 million to $400 million and full-year revenue of about $1.8 billion was broadly in line with expectations, reducing concern over a near-term slowdown. Business Wire article
• Positive Sentiment: Trading activity also looked bullish, with unusually heavy call-option buying and reports that shares were rising ahead of earnings, suggesting traders were positioning for upside. American Banking News article
• Neutral Sentiment: UiPath’s Q1 non-GAAP EPS of $0.15 matched expectations, so the stock reaction is being driven more by revenue growth, profitability progress, and guidance than by a major earnings beat. Yahoo Finance article

Wall Street Analysts Forecast Growth

Several research firms have recently commented on PATH. Bank of America reissued an "underperform" rating on shares of UiPath in a research report on Friday. BMO Capital Markets dropped their target price on shares of UiPath from $17.00 to $14.00 and set a "market perform" rating on the stock in a research note on Friday, March 13th. Royal Bank Of Canada set a $14.00 price target on shares of UiPath in a research note on Wednesday, February 11th. Weiss Ratings reissued a "hold (c)" rating on shares of UiPath in a report on Friday, March 27th. Finally, William Blair reiterated a "hold" rating on shares of UiPath in a research note on Thursday, March 12th. Three research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, UiPath has a consensus rating of "Hold" and an average target price of $14.07.

UiPath Trading Up 1.9%

The business's fifty day simple moving average is $10.74 and its 200-day simple moving average is $12.91. The firm has a market cap of $6.18 billion, a P/E ratio of 22.43, a price-to-earnings-growth ratio of 1.83 and a beta of 0.91.

UiPath (NYSE:PATH - Get Free Report) last announced its earnings results on Thursday, May 28th. The company reported $0.15 earnings per share for the quarter, meeting analysts' consensus estimates of $0.15. The firm had revenue of $418.38 million for the quarter, compared to analyst estimates of $397.54 million. UiPath had a net margin of 17.53% and a return on equity of 5.69%. The company's revenue for the quarter was up 17.3% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.11 EPS. Analysts anticipate that UiPath, Inc. will post 0.32 earnings per share for the current year.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of PATH. Norges Bank purchased a new position in UiPath during the 4th quarter valued at about $120,176,000. State Street Corp raised its holdings in shares of UiPath by 66.4% during the fourth quarter. State Street Corp now owns 13,004,786 shares of the company's stock valued at $213,148,000 after purchasing an additional 5,189,438 shares during the last quarter. AQR Capital Management LLC raised its holdings in shares of UiPath by 76.0% during the second quarter. AQR Capital Management LLC now owns 11,407,569 shares of the company's stock valued at $145,732,000 after purchasing an additional 4,926,341 shares during the last quarter. Morgan Stanley raised its holdings in shares of UiPath by 54.0% during the fourth quarter. Morgan Stanley now owns 9,310,304 shares of the company's stock valued at $152,596,000 after purchasing an additional 3,262,930 shares during the last quarter. Finally, Capital Impact Advisors LLC bought a new stake in UiPath during the fourth quarter valued at approximately $52,261,000. 62.50% of the stock is owned by hedge funds and other institutional investors.

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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