UiPath (NYSE:PATH) Trading Down 7.7% - Here's What Happened

Key Points

• UiPath shares fell 7.7% on Wednesday, trading as low as $11.00 after closing at $12.04, with volume far below average.
• Analyst sentiment remains cautious: the stock has an average “Hold” rating and a consensus price target of $13.80, while recent moves included target cuts and rating downgrades from several firms.
• Despite the stock drop, UiPath’s latest earnings showed revenue growth of 17.3% year over year to $418.38 million, with EPS matching estimates at $0.15 for the quarter.

UiPath, Inc. (NYSE:PATH - Get Free Report) fell 7.7% during trading on Wednesday . The stock traded as low as $11.00 and last traded at $11.1140. Approximately 6,395,136 shares traded hands during mid-day trading, a decline of 85% from the average session volume of 41,434,879 shares. The stock had previously closed at $12.04.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the stock. BMO Capital Markets dropped their price target on shares of UiPath from $14.00 to $13.00 and set a "market perform" rating for the company in a research report on Monday, June 1st. Bank of America upped their price objective on shares of UiPath from $12.00 to $13.00 and gave the company an "underperform" rating in a research note on Friday, May 29th. Needham & Company LLC reiterated a "buy" rating and set a $15.00 target price on shares of UiPath in a report on Friday, May 29th. Weiss Ratings reissued a "hold (c-)" rating on shares of UiPath in a research note on Friday, July 10th. Finally, Wall Street Zen downgraded UiPath from a "buy" rating to a "hold" rating in a report on Saturday, May 30th. Two analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $13.80.

UiPath Stock Down 11.8%

The company's fifty day simple moving average is $11.11 and its 200 day simple moving average is $11.75. The firm has a market capitalization of $5.50 billion, a PE ratio of 17.73, a price-to-earnings-growth ratio of 1.46 and a beta of 0.98.

UiPath (NYSE:PATH - Get Free Report) last posted its earnings results on Thursday, May 28th. The company reported $0.15 earnings per share for the quarter, hitting analysts' consensus estimates of $0.15. UiPath had a return on equity of 7.92% and a net margin of 19.58%.The firm had revenue of $418.38 million for the quarter, compared to the consensus estimate of $397.54 million. The business's revenue for the quarter was up 17.3% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.11 EPS. Equities research analysts forecast that UiPath, Inc. will post 0.4 EPS for the current year.

Hedge Funds Weigh In On UiPath

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. HighMark Wealth Management LLC purchased a new stake in UiPath during the 4th quarter valued at about $25,000. Raleigh Capital Management Inc. bought a new position in shares of UiPath during the fourth quarter valued at $26,000. TD Waterhouse Canada Inc. lifted its holdings in shares of UiPath by 1,270.8% during the fourth quarter. TD Waterhouse Canada Inc. now owns 1,782 shares of the company's stock valued at $29,000 after purchasing an additional 1,652 shares in the last quarter. Atlas Capital Advisors Inc. purchased a new stake in shares of UiPath during the fourth quarter valued at $37,000. Finally, AdvisorNet Financial Inc boosted its position in shares of UiPath by 750.0% during the first quarter. AdvisorNet Financial Inc now owns 3,400 shares of the company's stock valued at $38,000 after buying an additional 3,000 shares during the last quarter. Hedge funds and other 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. 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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