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

Key Points

• Upwork shares hit a new 52-week low, trading as low as $10.22 (last at $10.43) and falling about 7.5%, with a market cap around $1.37 billion and the 50-/200‑day moving averages at $12.00 and $16.44 respectively.
• The Board authorized a $300 million share repurchase program (up to ~18% of outstanding shares), a move management says signals they view the stock as undervalued.
• Analysts are mixed but leaning positive with a consensus rating of “Moderate Buy” and a $22.60 target, while insiders have sold roughly 235,186 shares (~$3.16M) in the past 90 days and institutional investors own about 77.7% of the stock.

Upwork Inc. (NASDAQ:UPWK - Get Free Report) shares reached a new 52-week low during mid-day trading on Thursday . The stock traded as low as $10.22 and last traded at $10.4340, with a volume of 2355331 shares traded. The stock had previously closed at $11.34.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on UPWK shares. 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. Wall Street Zen upgraded Upwork from a "hold" rating to a "buy" rating in a research note on Saturday, February 21st. Roth Mkm lifted their price target on shares of Upwork from $22.00 to $23.00 and gave the stock a "buy" rating in a research note on Tuesday, February 10th. Canaccord Genuity Group set a $22.00 price objective on shares of Upwork in a research note on Tuesday, February 10th. Finally, Royal Bank Of Canada dropped their target price on shares of Upwork from $24.00 to $20.00 and set a "sector perform" rating for the company in a research report on Tuesday, February 10th. Seven research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $22.60.

Upwork Stock Down 7.5%

The stock has a market capitalization of $1.37 billion, a P/E ratio of 12.45 and a beta of 1.18. The company has a 50 day moving average of $12.00 and a 200-day moving average of $16.44.

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

Insider Transactions at Upwork

In related news, CEO Hayden Brown sold 23,745 shares of the firm's stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $12.31, for a total value of $292,300.95. Following the sale, the chief executive officer owned 798,732 shares of the company's stock, valued at approximately $9,832,390.92. This trade represents a 2.89% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Erica Gessert sold 9,278 shares of the business's stock in a transaction that occurred on Wednesday, March 18th. The shares were sold at an average price of $12.31, for a total value of $114,212.18. Following the transaction, the chief financial officer owned 307,240 shares of the company's stock, valued at $3,782,124.40. This represents a 2.93% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 235,186 shares of company stock worth $3,156,199. 7.50% of the stock is currently owned by company insiders.

Institutional Trading of Upwork

Large investors have recently modified their holdings of the company. Handelsbanken Fonder AB grew its position in 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 purchasing an additional 700 shares during the last quarter. Straightline Group LLC boosted its position in shares of 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 buying an additional 920 shares during the period. Raymond James Financial Inc. boosted its position in shares of 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 buying an additional 928 shares during the period. Maridea Wealth Management LLC grew its holdings in Upwork by 11.0% in the 1st quarter. Maridea Wealth Management LLC now owns 11,621 shares of the company's stock worth $127,000 after buying an additional 1,152 shares in the last quarter. Finally, Farther Finance Advisors LLC grew its holdings in Upwork by 594.4% in the 4th 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 in the last quarter. Institutional investors and hedge funds own 77.71% of the company's stock.

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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