Upwork (NASDAQ:UPWK) Hits New 1-Year Low - Should You Sell?

Key Points

• Upwork shares hit a new 52-week low, trading as low as $10.15 and last near $10.40, with a market cap of about $1.28 billion and 50/200-day moving averages at $11.73/$16.21.
• Analyst sentiment is mixed but tilted positive — seven Buys versus six Holds, a consensus rating of "Moderate Buy" and an average target of $22.60 despite several firms lowering their price targets.
• Board approved a $300 million share repurchase (up to 18% of shares) even as insiders have sold roughly 235,186 shares in the past 90 days (including the CEO), with insiders owning about 7.5% of outstanding stock.

Upwork Inc. (NASDAQ:UPWK - Get Free Report)'s share price reached a new 52-week low during trading on Thursday . The stock traded as low as $10.15 and last traded at $10.3970, with a volume of 606684 shares. The stock had previously closed at $10.35.

Analysts Set New Price Targets

Several research firms have commented on UPWK. Scotiabank dropped their target price on Upwork from $17.00 to $15.00 and set a "sector perform" rating on the stock in a report on Tuesday, February 10th. Royal Bank Of Canada dropped their target price on Upwork from $24.00 to $20.00 and set a "sector perform" rating on the stock in a report on Tuesday, February 10th. The Goldman Sachs Group reissued a "buy" rating and issued a $27.00 target price on shares of Upwork in a report on Tuesday, February 10th. Citigroup dropped their target price on Upwork from $19.00 to $17.00 and set a "neutral" rating on the stock in a report on Tuesday, February 10th. Finally, Canaccord Genuity Group set a $22.00 target price on Upwork in a report on Tuesday, February 10th. Seven research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $22.60.

Upwork Stock Performance

The firm has a market cap of $1.28 billion, a P/E ratio of 12.32 and a beta of 1.18. The company's 50 day simple moving average is $11.73 and its 200-day simple moving average is $16.21.

Upwork declared that its board has authorized a share repurchase plan on Wednesday, February 18th that permits the company to repurchase $300.00 million in outstanding shares. This repurchase authorization permits the company to reacquire up to 18% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's board believes its shares are undervalued.

Insider Buying and Selling at Upwork

In other Upwork news, CEO Hayden Brown sold 123,152 shares of the stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $13.80, for a total value of $1,699,497.60. Following the transaction, the chief executive officer owned 776,067 shares of the company's stock, valued at approximately $10,709,724.60. This represents a 13.70% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Dave Bottoms sold 17,013 shares of the stock in a transaction dated Wednesday, February 18th. The shares were sold at an average price of $13.80, for a total value of $234,779.40. Following the completion of the transaction, the insider directly owned 15,994 shares in the company, valued at approximately $220,717.20. This represents a 51.54% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 235,186 shares of company stock valued at $3,156,199. 7.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. Accredited Wealth Management LLC raised its stake in shares of Upwork by 5,280.0% in the third quarter. Accredited Wealth Management LLC now owns 1,345 shares of the company's stock worth $25,000 after buying an additional 1,320 shares during the period. Clearstead Advisors LLC raised its stake in shares of Upwork by 998.4% in the third quarter. Clearstead Advisors LLC now owns 1,406 shares of the company's stock worth $26,000 after buying an additional 1,278 shares during the period. Farther Finance Advisors LLC raised its stake in shares of 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 buying an additional 1,165 shares during the period. Fifth Third Bancorp raised its stake in shares of Upwork by 2,405.7% in the third quarter. Fifth Third Bancorp now owns 1,754 shares of the company's stock worth $33,000 after buying an additional 1,684 shares during the period. Finally, GAMMA Investing LLC raised its stake in shares of Upwork by 379.2% in the fourth quarter. GAMMA Investing LLC now owns 1,840 shares of the company's stock worth $36,000 after buying an additional 1,456 shares during the period. Institutional investors own 77.71% of the company's stock.

About Upwork

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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