UiPath (NYSE: PATH) has received a significant upgrade from Zacks Research, moving from a hold rating to a strong-buy rating. This change reflects growing confidence among analysts regarding the company’s financial outlook. The upgrade was reported on Tuesday morning, with Zacks.com detailing the positive sentiment surrounding UiPath’s stock.
Several other financial institutions have also adjusted their ratings and price targets for UiPath. On December 4, 2023, Canaccord Genuity Group raised its target price from $15.00 to $19.00, endorsing a “buy” rating. Royal Bank of Canada followed suit, increasing its target from $16.00 to $19.00 with a “sector perform” rating. BMO Capital Markets also lifted its price objective from $13.00 to $17.00, assigning a “market perform” rating. Truist Financial established a target price of $17.00 on the same day. In contrast, Wall Street Zen downgraded UiPath from a strong-buy to a buy rating on December 6, 2023.
Currently, UiPath has received a mix of ratings from analysts: one strong buy, one buy, fourteen hold ratings, and one sell rating. As reported by MarketBeat.com, the stock has an average rating of “hold” with a consensus price target of $16.00.
Recent Financial Performance
UiPath last released its earnings results on December 3, 2023, reporting an earnings per share (EPS) of $0.16, surpassing the consensus estimate of $0.14 by $0.02. The company recorded revenue of $411.11 million for the quarter, significantly higher than analyst expectations of $392.46 million. This performance marks a 15.9% increase in revenue compared to the same quarter the previous year. The return on equity stood at 3.73%, with a net margin of 14.79%. Analysts project that UiPath will post an EPS of -0.17 for the current fiscal year.
Insider Activity and Institutional Investments
In other developments, insider trading activity has been notable. On October 6, 2023, insider Brad Brubaker sold 66,665 shares at an average price of $15.00, totaling approximately $999,975.00. Following this transaction, Brubaker retained 690,519 shares valued at about $10,357,785, representing an 8.80% reduction in his holdings.
CEO Daniel Dines also sold shares on October 13, 2023, offloading 122,734 shares at an average price of $17.06, amounting to around $2,093,842.04. After this sale, Dines held 368,202 shares valued at roughly $6,281,526.12, reflecting a 25.00% decrease in his position. Over the last ninety days, insiders have sold a total of 1,921,368 shares worth $31,751,023. Currently, corporate insiders own approximately 23.19% of the company’s stock.
Large institutional investors have also been active, adjusting their stakes in UiPath. GAMMA Investing LLC increased its holdings by 48.0% in the second quarter, now owning 2,989 shares valued at $38,000. Covestor Ltd raised its position by 17.7% during the third quarter, holding 6,522 shares worth $87,000. Rockefeller Capital Management L.P. grew its stake by 0.8% in the second quarter, owning 123,329 shares valued at approximately $1,579,000. Wealthfront Advisers LLC also increased its holdings by 3.6% in the third quarter, holding 32,886 shares valued at $440,000. Overall, institutional investors now own 62.50% of UiPath’s stock.
UiPath Inc. specializes in robotic process automation (RPA) solutions and operates a comprehensive automation platform. Its offerings cater primarily to clients in the United States, Romania, the United Kingdom, the Netherlands, and other international markets. The platform incorporates advanced artificial intelligence, machine learning, and natural language processing capabilities, enabling businesses to enhance decision-making and streamline operations. This adaptability positions UiPath to address a diverse range of automation needs, contributing to its growing market presence.
