Upwork (NASDAQ:UPWK) Shares Gap Up After Better-Than-Expected Earnings

Upwork Inc. (NASDAQ:UPWK - Get Free Report)'s share price gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $13.32, but opened at $14.70. Upwork shares last traded at $15.69, with a volume of 1,269,915 shares trading hands.

The company reported $0.34 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.25 by $0.09. Upwork had a net margin of 28.02% and a return on equity of 50.83%. The business had revenue of $192.71 million during the quarter, compared to the consensus estimate of $188.49 million. During the same period in the prior year, the firm posted $0.22 EPS. The firm's quarterly revenue was up .9% compared to the same quarter last year.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the company. Citigroup lowered their target price on Upwork from $19.00 to $18.00 and set a "neutral" rating on the stock in a research note on Tuesday. 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 Tuesday. Jefferies Financial Group decreased their price target on shares of Upwork from $21.00 to $20.00 and set a "buy" rating for the company in a research note on Monday, April 7th. Scotiabank assumed coverage on Upwork in a research note on Wednesday, March 12th. They issued a "sector perform" rating and a $15.00 price objective on the stock. Finally, BTIG Research downgraded Upwork from a "buy" rating to a "neutral" rating in a research report on Friday, April 4th. Five equities research analysts have rated the stock with a hold rating and seven have given a buy rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $18.50.

Insider Activity

In other news, insider Dave Bottoms sold 5,411 shares of the business's stock in a transaction on Tuesday, March 18th. The shares were sold at an average price of $13.07, for a total transaction of $70,721.77. Following the completion of the transaction, the insider now directly owns 9,593 shares in the company, valued at $125,380.51. The trade was a 36.06 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Hayden Brown sold 40,000 shares of the stock in a transaction on Wednesday, May 7th. The stock was sold at an average price of $15.92, for a total value of $636,800.00. Following the completion of the sale, the chief executive officer now owns 1,183,741 shares in the company, valued at $18,845,156.72. This trade represents a 3.27 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 233,108 shares of company stock worth $3,683,448. 7.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Jupiter Asset Management Ltd. bought a new position in shares of Upwork in the 1st quarter worth $241,000. LSV Asset Management increased its stake in Upwork by 364.5% in the first quarter. LSV Asset Management now owns 5,351,406 shares of the company's stock valued at $69,836,000 after acquiring an additional 4,199,244 shares during the last quarter. Alberta Investment Management Corp bought a new position in Upwork in the first quarter valued at $504,000. Mesirow Financial Investment Management Inc. raised its position in Upwork by 5.7% during the first quarter. Mesirow Financial Investment Management Inc. now owns 27,228 shares of the company's stock valued at $347,000 after purchasing an additional 1,465 shares in the last quarter. Finally, XTX Topco Ltd lifted its stake in Upwork by 64.4% during the first quarter. XTX Topco Ltd now owns 43,236 shares of the company's stock worth $564,000 after purchasing an additional 16,944 shares during the last quarter. 77.71% of the stock is currently owned by institutional investors.

Upwork Price Performance

The stock has a market capitalization of $2.22 billion, a PE ratio of 11.03 and a beta of 1.52. The company has a current ratio of 3.39, a quick ratio of 3.39 and a debt-to-equity ratio of 0.62. The business has a fifty day moving average price of $13.40 and a 200-day moving average price of $15.05.

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.