Upwork (NASDAQ:UPWK) Shares Down 5.2% After Insider Selling

Key Points

• Shares of Upwork Inc. dropped 5.2% after significant insider selling, with CEO Hayden Brown selling 20,000 shares at an average price of $20.00 and reducing his ownership by 1.81%.
• The company's stock has seen a 37% decline in trading volume, with shares last recorded at $19.04.
• Upwork announced a $100 million share repurchase program, indicating the board's belief that the stock is undervalued, despite recent declines.

Shares of Upwork Inc. (NASDAQ:UPWK - Get Free Report) were down 5.2% during trading on Monday following insider selling activity. The company traded as low as $19.06 and last traded at $19.04. Approximately 1,633,848 shares traded hands during trading, a decline of 37% from the average daily volume of 2,595,941 shares. The stock had previously closed at $20.07.

Specifically, CEO Hayden Brown sold 20,000 shares of Upwork stock in a transaction that occurred on Friday, September 19th. The shares were sold at an average price of $20.00, for a total value of $400,000.00. Following the transaction, the chief executive officer directly owned 1,082,358 shares of the company's stock, valued at $21,647,160. This trade represents a 1.81% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Hayden Brown sold 42,344 shares of Upwork stock in a transaction that occurred on Thursday, September 18th. The stock was sold at an average price of $19.09, for a total transaction of $808,346.96. Following the completion of the transaction, the chief executive officer directly owned 1,078,291 shares in the company, valued at approximately $20,584,575.19. This trade represents a 3.78% decrease in their ownership of the stock. The disclosure for this sale can be found here. In other news, CEO Hayden Brown sold 20,000 shares of Upwork stock in a transaction that occurred on Wednesday, September 17th. The shares were sold at an average price of $18.00, for a total value of $360,000.00. Following the transaction, the chief executive officer directly owned 1,098,291 shares of the company's stock, valued at $19,769,238. This trade represents a 1.79% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link.

Wall Street Analyst Weigh In

A number of analysts have issued reports on UPWK shares. Royal Bank Of Canada reiterated a "sector perform" rating and issued a $18.00 target price on shares of Upwork in a research note on Monday, June 2nd. Wall Street Zen cut shares of Upwork from a "buy" rating to a "hold" rating in a research note on Saturday. Finally, JMP Securities reiterated a "market outperform" rating and issued a $20.00 target price on shares of Upwork in a research note on Friday, September 12th. Eight equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $18.67.

Upwork Price Performance

The company has a debt-to-equity ratio of 0.59, a quick ratio of 3.36 and a current ratio of 3.36. The company's 50 day moving average price is $14.52 and its 200 day moving average price is $14.21. The company has a market cap of $2.53 billion, a price-to-earnings ratio of 10.98 and a beta of 1.43.

Upwork (NASDAQ:UPWK - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The company reported $0.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.26 by $0.09. Upwork had a net margin of 31.75% and a return on equity of 44.83%. The business had revenue of $194.94 million for the quarter, compared to the consensus estimate of $187.56 million. During the same quarter in the prior year, the company earned $0.26 EPS. The firm's quarterly revenue was up .9% on a year-over-year basis. On average, equities research analysts predict that Upwork Inc. will post 0.84 earnings per share for the current fiscal year.

Upwork announced that its board has initiated a share repurchase program on Wednesday, September 3rd that allows the company to buyback $100.00 million in shares. This buyback authorization allows the company to repurchase up to 4.9% of its shares through open market purchases. Shares buyback programs are often an indication that the company's board believes its shares are undervalued.

Institutional Trading of Upwork

A number of large investors have recently bought and sold shares of UPWK. SeaCrest Wealth Management LLC increased its position in Upwork by 8.0% during the 2nd quarter. SeaCrest Wealth Management LLC now owns 10,800 shares of the company's stock worth $145,000 after buying an additional 800 shares during the period. King Luther Capital Management Corp increased its position in shares of Upwork by 0.4% in the second quarter. King Luther Capital Management Corp now owns 264,789 shares of the company's stock worth $3,559,000 after purchasing an additional 987 shares during the period. Straightline Group LLC increased its position in shares of Upwork by 3.2% in the second quarter. Straightline Group LLC now owns 37,143 shares of the company's stock worth $499,000 after purchasing an additional 1,160 shares during the period. Ethic Inc. increased its position in shares of Upwork by 11.1% in the second quarter. Ethic Inc. now owns 14,393 shares of the company's stock worth $196,000 after purchasing an additional 1,443 shares during the period. Finally, Mesirow Financial Investment Management Inc. grew its position in Upwork by 5.7% in the first quarter. Mesirow Financial Investment Management Inc. now owns 27,228 shares of the company's stock valued at $347,000 after acquiring an additional 1,465 shares during the last quarter. 77.71% of the stock is owned by institutional investors.

Upwork Company Profile

Upwork Inc, together with its subsidiaries, operates a work marketplace that connects businesses with various independent professionals and agencies in the United States, India, the Philippines, and internationally. The company's work marketplace provides access to talent with various skills across a range of categories, including administrative support, sales and marketing, design and creative, and customer service, as well as web, mobile, and software development.

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