Upwork (NASDAQ:UPWK) Shares Gap Up After Earnings Beat

Key Points

• Upwork's shares opened at $13.63 after the company reported earnings of $0.35 per share, exceeding the consensus estimate of $0.26.
• The company's revenue for the quarter was $194.94 million, surpassing analyst expectations, and Upwork's stock is currently rated as a "Moderate Buy"** with an average price target of $18.67.
• CEO Hayden Brown and another insider sold a combined 35,278 shares recently, reflecting notable insider activity amidst stock trading volatility.

Upwork Inc. (NASDAQ:UPWK - Get Free Report) gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $11.95, but opened at $13.63. Upwork shares last traded at $12.94, with a volume of 1,879,297 shares trading hands.

The company reported $0.35 earnings per share for the quarter, topping the consensus estimate of $0.26 by $0.09. The company had revenue of $194.94 million during the quarter, compared to analyst estimates of $187.56 million. Upwork had a net margin of 30.46% and a return on equity of 48.38%. Upwork's revenue was up .9% compared to the same quarter last year. During the same quarter last year, the firm posted $0.26 earnings per share.

Analysts Set New Price Targets

UPWK has been the topic of a number of research analyst reports. Needham & Company LLC reissued a "buy" rating and set a $19.00 price objective on shares of Upwork in a report on Tuesday, May 6th. Wall Street Zen upgraded shares of Upwork from a "buy" rating to a "strong-buy" rating in a research report on Saturday, May 24th. Royal Bank Of Canada reiterated a "sector perform" rating and issued a $18.00 price objective on shares of Upwork in a research report on Monday, June 2nd. Citigroup reiterated an "outperform" rating on shares of Upwork in a research report on Friday, May 16th. Finally, JMP Securities boosted their target price on shares of Upwork from $18.00 to $20.00 and gave the stock a "market outperform" rating in a research report on Friday, May 16th. Four investment analysts have rated the stock with a hold rating, eight have given a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat.com, Upwork currently has an average rating of "Moderate Buy" and an average price target of $18.67.

Insider Activity

In related news, CEO Hayden Brown sold 23,716 shares of the stock in a transaction that occurred on Wednesday, June 18th. The shares were sold at an average price of $13.51, for a total transaction of $320,403.16. Following the completion of the sale, the chief executive officer owned 1,153,485 shares of the company's stock, valued at approximately $15,583,582.35. This represents a 2.01% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Dave Bottoms sold 11,562 shares of the stock in a transaction that occurred on Wednesday, June 18th. The stock was sold at an average price of $13.51, for a total transaction of $156,202.62. Following the sale, the insider directly owned 9,345 shares of the company's stock, valued at approximately $126,250.95. This trade represents a 55.30% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 505,454 shares of company stock worth $8,536,163. Insiders own 7.50% of the company's stock.

Hedge Funds Weigh In On Upwork

Institutional investors and hedge funds have recently bought and sold shares of the stock. LRI Investments LLC boosted its stake in shares of Upwork by 415.9% during the 2nd quarter. LRI Investments LLC now owns 2,528 shares of the company's stock valued at $34,000 after buying an additional 2,038 shares during the last quarter. IFP Advisors Inc increased its position in Upwork by 3,492.8% in the first quarter. IFP Advisors Inc now owns 3,988 shares of the company's stock worth $52,000 after buying an additional 3,877 shares during the period. GAMMA Investing LLC increased its position in Upwork by 1,235.1% in the first quarter. GAMMA Investing LLC now owns 4,072 shares of the company's stock worth $53,000 after buying an additional 3,767 shares during the period. Alpine Global Management LLC acquired a new stake in Upwork in the first quarter worth $130,000. Finally, Oppenheimer Asset Management Inc. acquired a new stake in Upwork in the first quarter worth $140,000. Hedge funds and other institutional investors own 77.71% of the company's stock.

Upwork Price Performance

The company has a debt-to-equity ratio of 0.60, a current ratio of 3.41 and a quick ratio of 3.41. The company has a 50-day simple moving average of $13.61 and a two-hundred day simple moving average of $14.32. The stock has a market capitalization of $1.72 billion, a price-to-earnings ratio of 7.73 and a beta of 1.38.

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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