Upwork (NASDAQ:UPWK) Downgraded to "Market Perform" Rating by Citizens Jmp

Key Points

• Citizens Jmp downgraded Upwork from "outperform" to "market perform" and the stock's consensus rating remains a Hold with a $17.80 average price target.
• The Board approved a $300 million share repurchase program (up to ~18% of shares), signaling management believes the stock may be undervalued.
• Recent results and actions are mixed: management raised FY‑2026 EPS/adjusted‑EBITDA targets and Q2 EPS guidance, but Q1 revenue and revenue guidance missed Street estimates and insiders have sold material stakes, creating headline risk.

Upwork (NASDAQ:UPWK - Get Free Report) was downgraded by analysts at Citizens Jmp from an "outperform" rating to a "market perform" rating in a research report issued on Friday.

A number of other equities analysts also recently commented on the company. Wall Street Zen upgraded Upwork from a "hold" rating to a "buy" rating in a report on Saturday, February 21st. The Goldman Sachs Group reiterated a "buy" rating and issued a $27.00 price target on shares of Upwork in a report on Tuesday, February 10th. Needham & Company LLC reduced their price objective on shares of Upwork from $25.00 to $15.00 and set a "buy" rating on the stock in a research report on Friday. UBS Group lowered shares of Upwork from a "buy" rating to a "neutral" rating and set a $10.00 price objective for the company. in a report on Friday. Finally, Scotiabank dropped their target price on shares of Upwork from $17.00 to $15.00 and set a "sector perform" rating for the company in a research report on Tuesday, February 10th. Three equities research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $17.80.

Upwork Price Performance

UPWK opened at $7.82 on Friday. Upwork has a one year low of $7.72 and a one year high of $22.84. The business has a 50 day simple moving average of $11.51 and a two-hundred day simple moving average of $16.02. The firm has a market capitalization of $965.70 million, a price-to-earnings ratio of 8.92 and a beta of 1.07.

Upwork declared that its Board of Directors has initiated a stock repurchase program on Wednesday, February 18th that permits the company to repurchase $300.00 million in shares. This repurchase authorization permits the company to buy up to 18% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company's board believes its shares are undervalued.

Insider Activity

In related news, CFO Erica Gessert sold 26,292 shares of Upwork stock in a transaction that occurred on Wednesday, February 18th. The stock was sold at an average price of $13.80, for a total transaction of $362,829.60. Following the sale, the chief financial officer directly owned 298,386 shares in the company, valued at $4,117,726.80. The trade was a 8.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Dave Bottoms sold 17,013 shares of the company's stock in a transaction on Wednesday, February 18th. The stock was sold at an average price of $13.80, for a total value of $234,779.40. Following the completion of the sale, the insider directly owned 15,994 shares in the company, valued at approximately $220,717.20. The trade was a 51.54% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 235,186 shares of company stock worth $3,156,199 in the last quarter. 7.50% of the stock is owned by company insiders.

Institutional Trading of Upwork

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Handelsbanken Fonder AB increased its stake in shares of Upwork by 2.2% in the 4th quarter. Handelsbanken Fonder AB now owns 32,200 shares of the company's stock worth $638,000 after acquiring an additional 700 shares in the last quarter. Straightline Group LLC boosted its stake in Upwork by 2.4% during the fourth quarter. Straightline Group LLC now owns 39,222 shares of the company's stock worth $777,000 after acquiring an additional 920 shares in the last quarter. Raymond James Financial Inc. boosted its stake in Upwork by 4.0% during the third quarter. Raymond James Financial Inc. now owns 24,004 shares of the company's stock worth $446,000 after acquiring an additional 928 shares in the last quarter. Maridea Wealth Management LLC grew its holdings in Upwork by 11.0% in the first quarter. Maridea Wealth Management LLC now owns 11,621 shares of the company's stock worth $127,000 after purchasing an additional 1,152 shares during the period. Finally, Farther Finance Advisors LLC grew its holdings in Upwork by 594.4% in the fourth quarter. Farther Finance Advisors LLC now owns 1,361 shares of the company's stock worth $27,000 after purchasing an additional 1,165 shares during the period. 77.71% of the stock is owned by hedge funds and other institutional investors.

More Upwork News

Here are the key news stories impacting Upwork this week:

• Positive Sentiment: Raised EPS/adjusted‑EBITDA targets — Upwork updated FY‑2026 EPS guidance to $1.50–$1.55 (above consensus) and raised adjusted EBITDA guidance for the year, signalling management sees margin or profitability upside despite revenue pressure. Upwork Reports First Quarter 2026 Financial Results
• Positive Sentiment: Q2 EPS guide above Street — Management guided Q2 EPS to $0.350–$0.370, higher than the consensus EPS estimate, which may reassure investors focused on per‑share profitability. Upwork Reports First Quarter 2026 Financial Results
• Neutral Sentiment: Revenue growth was modest — Q1 revenue ran about $195.5M, roughly flat/only modestly higher (+~1.4% YoY), so the business is still growing but not accelerating. Upwork Inc. Stock Falls on Q1 2026 Earnings
• Neutral Sentiment: Client monetization indicators mixed — GSV per active client improved (management pointed to AI and SMB initiatives), which could support longer‑term revenue per client if sustained. Upwork Reports First Quarter 2026 Financial Results
• Negative Sentiment: Top‑line and EPS misses / mixed reported metrics — Some outlets report Q1 EPS and revenue missed consensus (examples: EPS reported as $0.24 vs. estimates ~ $0.25–$0.28 and revenue below ~$199–204M consensus), creating headline risk and selling pressure. Upwork (UPWK) Q1 Earnings and Revenues Miss Estimates
• Negative Sentiment: Weaker revenue guidance — Management set Q2 and FY revenue ranges that are well below Street estimates (Q2 guide ~$187–193M; FY guide $760–790M vs much higher consensus), which is the primary driver cited for the after‑hours selloff. Upwork Stock Plunges On Q1 Earnings, Softer Revenue Outlook, Restructuring Plan
• Negative Sentiment: Profitability and cash‑flow deterioration in the quarter — Operating profit and net income declined YoY and cash from operations dropped materially, increasing near‑term execution risk. Upwork Inc. Stock Falls on Q1 2026 Earnings
• Negative Sentiment: Restructuring and insider selling headlines — Benzinga and Quiver highlighted a restructuring plan and extensive insider sales in recent months, which can amplify negative investor sentiment. Upwork Stock Plunges On Q1 Earnings, Softer Revenue Outlook, Restructuring Plan Upwork Inc. Stock Falls on Q1 2026 Earnings

Upwork Company Profile

Upwork Inc operates a leading online talent marketplace that connects businesses with independent professionals worldwide. Through its digital platform, the company enables clients across industries—including technology, marketing, creative services and customer support—to source, hire and manage freelance talent on demand. Key features of the Upwork platform include streamlined job posting, proposal evaluation, time-tracking tools, invoicing and secure payment processing, all designed to simplify collaboration between clients and remote workers.

The company traces its roots to the merger of two pioneering freelance marketplaces, Elance (founded in 1998) and oDesk (founded in 2003), which combined in 2015 to form a unified entity.

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