Upwork (NASDAQ:UPWK) Releases Earnings Results, Misses Expectations By $0.04 EPS

Upwork (NASDAQ:UPWK) announced its quarterly earnings results on Monday. The company reported $0.21 earnings per share for the quarter, missing analysts’ consensus estimates of $0.25 by ($0.04), Zacks reports. Upwork had a net margin of 31.75% and a return on equity of 44.83%. Upwork updated its FY 2025 guidance to 1.350-1.370 EPS and its Q4 2025 guidance to 0.310-0.330 EPS.

Upwork Stock Down 1.9%

Shares of Upwork stock traded down $0.31 during trading on Monday, reaching $15.63. The stock had a trading volume of 3,874,205 shares, compared to its average volume of 2,575,257. The company has a current ratio of 3.36, a quick ratio of 3.36 and a debt-to-equity ratio of 0.59. The company has a market capitalization of $2.07 billion, a price-to-earnings ratio of 8.98 and a beta of 1.54. The stock has a fifty day moving average price of $17.02 and a two-hundred day moving average price of $15.14. Upwork has a 52 week low of $11.13 and a 52 week high of $20.54.

Upwork announced that its board has initiated a stock buyback plan on Wednesday, September 3rd that permits the company to repurchase $100.00 million in outstanding shares. This repurchase authorization permits the company to reacquire up to 4.9% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board of directors believes its stock is undervalued.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on UPWK shares. Wall Street Zen upgraded shares of Upwork from a “hold” rating to a “buy” rating in a report on Sunday, September 28th. UBS Group set a $21.00 price objective on shares of Upwork and gave the company a “buy” rating in a research report on Tuesday, October 28th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Upwork in a report on Wednesday, October 8th. Citigroup reissued an “outperform” rating on shares of Upwork in a research note on Wednesday, September 24th. Finally, JMP Securities increased their price target on Upwork from $20.00 to $27.00 and gave the stock a “market outperform” rating in a report on Wednesday, September 24th. Nine investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $19.42.

Insider Buying and Selling

In other news, CEO Hayden Brown sold 60,000 shares of the firm’s stock in a transaction that occurred on Friday, August 15th. The shares were sold at an average price of $13.76, for a total transaction of $825,600.00. Following the completion of the transaction, the chief executive officer directly owned 1,093,485 shares of the company’s stock, valued at $15,046,353.60. This trade represents a 5.20% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Erica Gessert sold 19,036 shares of Upwork stock in a transaction that occurred on Monday, August 18th. The shares were sold at an average price of $13.84, for a total transaction of $263,458.24. Following the completion of the sale, the chief financial officer owned 209,202 shares in the company, valued at $2,895,355.68. This trade represents a 8.34% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 222,576 shares of company stock worth $3,670,318. 7.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Upwork

Several hedge funds and other institutional investors have recently added to or reduced their stakes in UPWK. EverSource Wealth Advisors LLC grew its holdings in shares of Upwork by 19,361.1% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 3,503 shares of the company’s stock valued at $47,000 after acquiring an additional 3,485 shares in the last quarter. Tower Research Capital LLC TRC raised its holdings in Upwork by 1,333.0% during the second quarter. Tower Research Capital LLC TRC now owns 13,972 shares of the company’s stock worth $188,000 after acquiring an additional 12,997 shares in the last quarter. Russell Investments Group Ltd. boosted its position in Upwork by 85.8% during the second quarter. Russell Investments Group Ltd. now owns 15,850 shares of the company’s stock valued at $213,000 after purchasing an additional 7,319 shares during the last quarter. Cetera Investment Advisers grew its stake in Upwork by 51.4% in the second quarter. Cetera Investment Advisers now owns 16,363 shares of the company’s stock valued at $220,000 after purchasing an additional 5,553 shares in the last quarter. Finally, Caxton Associates LLP bought a new position in Upwork in the second quarter valued at approximately $241,000. 77.71% of the stock is currently owned by institutional investors and hedge funds.

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.