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

Upwork (NASDAQ:UPWK) posted its quarterly earnings results on Monday. The company reported $0.21 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.25 by ($0.04), Zacks reports. Upwork had a return on equity of 44.83% and a net margin of 31.75%. 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 Performance

Shares of Upwork stock traded down $0.31 during trading hours on Monday, reaching $15.63. 3,955,588 shares of the stock traded hands, compared to its average volume of 2,575,801. The company has a 50 day moving average price of $17.02 and a 200 day moving average price of $15.14. The firm has a market capitalization of $2.07 billion, a price-to-earnings ratio of 8.98 and a beta of 1.54. Upwork has a one year low of $11.13 and a one year high of $20.54. The company has a quick ratio of 3.36, a current ratio of 3.36 and a debt-to-equity ratio of 0.59.

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

Insider Buying and Selling at Upwork

In other Upwork news, CEO Hayden Brown sold 20,000 shares of the business’s stock in a transaction dated Friday, September 19th. The stock was sold at an average price of $20.00, for a total transaction of $400,000.00. Following the completion of the sale, the chief executive officer directly owned 1,082,358 shares in the company, valued at $21,647,160. The trade was a 1.81% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Erica Gessert sold 8,730 shares of the business’s stock in a transaction dated Thursday, September 18th. The shares were sold at an average price of $19.16, for a total value of $167,266.80. Following the sale, the chief financial officer owned 218,605 shares of the company’s stock, valued at approximately $4,188,471.80. This represents a 3.84% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 222,576 shares of company stock worth $3,670,318 in the last three months. 7.50% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. EverSource Wealth Advisors LLC grew its stake in shares of Upwork by 19,361.1% during 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 during the period. Tower Research Capital LLC TRC grew its stake in shares of Upwork by 1,333.0% during the 2nd quarter. Tower Research Capital LLC TRC now owns 13,972 shares of the company’s stock valued at $188,000 after acquiring an additional 12,997 shares during the period. Russell Investments Group Ltd. grew its stake in shares of Upwork by 85.8% during the 2nd quarter. Russell Investments Group Ltd. now owns 15,850 shares of the company’s stock valued at $213,000 after acquiring an additional 7,319 shares during the period. Cetera Investment Advisers grew its stake in shares of Upwork by 51.4% during the 2nd quarter. Cetera Investment Advisers now owns 16,363 shares of the company’s stock valued at $220,000 after acquiring an additional 5,553 shares during the period. Finally, Caxton Associates LLP bought a new position in shares of Upwork during the 2nd quarter valued at approximately $241,000. 77.71% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

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

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.