Shares of UiPath, Inc. (NYSE: PATH) declined by 1.7% during trading on December 31, 2023, following significant insider selling. The stock experienced a low of $16.26 before closing at $16.38. This activity saw an unusual trading volume of approximately 69,643,403 shares, a 335% increase compared to the average daily volume of 16,026,240 shares. The previous closing price stood at $16.67.
CEO Daniel Dines sold 45,000 shares in a transaction on the same day, with the shares priced at an average of $16.55, totaling $744,750. After this sale, Dines retained ownership of 28,478,585 shares, valued at approximately $471.3 million. This transaction reflects a 0.16% decrease in his overall ownership stake. The sale was duly reported to the Securities and Exchange Commission.
On December 29, Dines executed another sale of 45,000 shares at an average price of $16.44, amounting to $739,800. Following this transaction, his ownership decreased slightly to 28,523,585 shares, valued at about $468.9 million. Previously, on December 26, he sold 45,000 shares for $16.90 each, generating $760,500 and reducing his ownership to 28,613,585 shares, valued at roughly $483.6 million. Each of these transactions was disclosed in filings accessible via the SEC website.
Analysts Adjust Price Targets Amid Changes
In light of these developments, several research analysts have revised their price targets for UiPath. Needham & Company LLC reiterated a “hold” rating on December 4, while BMO Capital Markets raised its target from $13.00 to $17.00, also assigning a “market perform” rating. Similarly, Evercore ISI increased its price objective from $15.00 to $17.00 with an “in-line” rating. Analysts at Barclays adjusted their target from $14.00 to $16.00 and rated the stock as “equal weight.” DA Davidson also raised its price target from $12.00 to $15.00, assigning a “neutral” rating.
Currently, analysts hold a mixed outlook on UiPath, with one rating the stock as a Buy, fifteen as Hold, and one as Sell. The consensus price target now sits at $16.00.
UiPath’s Financial Performance and Market Position
UiPath’s recent financial performance reflects a positive trend. For the quarter ending December 3, 2023, the company reported earnings per share (EPS) of $0.16, surpassing analysts’ expectations of $0.14 by $0.02. The company achieved revenues of $411.11 million, exceeding the consensus estimate of $392.46 million, and marking a year-over-year revenue increase of 15.9%. The firm’s return on equity was reported at 3.73% with a net margin of 14.79%.
As of now, UiPath has a market capitalization of $8.76 billion, with a price-to-earnings ratio of 39.00 and a PEG ratio of 5.09. The company’s 50-day moving average stands at $15.55, while the 200-day moving average is $13.58. Analysts anticipate that UiPath will post earnings of -$0.17 per share for the current fiscal year.
Institutional investors hold a substantial portion of UiPath’s shares, with approximately 62.50% of the stock owned by hedge funds and other large entities. Notably, Raymond James Financial Inc. increased its holdings by 58.4% in the first quarter, acquiring 686,278 shares valued at around $7.07 million. Other significant institutional changes include Northwestern Mutual Wealth Management Co. and Comerica Bank, which also expanded their positions in UiPath.
With a robust automation platform, UiPath provides comprehensive solutions in robotic process automation (RPA) across various regions, including the United States, Romania, the United Kingdom, and the Netherlands. The company’s technology integrates artificial intelligence, machine learning, and natural language processing to enhance organizational efficiencies.
As UiPath navigates a dynamic market landscape, the implications of these insider transactions and analyst ratings will be closely watched by investors and industry observers alike.
