UiPath, Inc. (NYSE: PATH) experienced a decline of 1.7% in its share price on December 31, 2023, following notable insider selling by CEO Daniel Dines. The stock traded as low as $16.26 before closing at $16.38, significantly below its previous close of $16.67. Approximately 69,643,403 shares changed hands during the trading session, marking a remarkable 335% increase from the average daily volume of 16,026,240 shares.
On the same day, Dines sold 45,000 shares at an average price of $16.55, resulting in a transaction value of $744,750. After this sale, Dines owned 28,478,585 shares in UiPath, which are valued at approximately $471,320,581.75, indicating a 0.16% decrease in his ownership stake. The transaction was officially disclosed in a filing with the Securities and Exchange Commission (SEC).
This was not an isolated event; Dines also sold 45,000 shares on December 29, 2023, at an average price of $16.44, totaling $739,800. Following that sale, his ownership was adjusted to 28,523,585 shares, valued around $468,927,737.40. Furthermore, on December 26, 2023, he executed a similar sale of 45,000 shares for an average price of $16.90, amounting to $760,500.
Analysts Adjust Price Targets Following Sales
The recent insider selling prompted various analysts to reassess their price targets for UiPath. Needham & Company LLC reaffirmed a “hold” rating for the stock on December 4, 2023. Meanwhile, BMO Capital Markets raised its price target from $13.00 to $17.00, designating a “market perform” rating. Similarly, Evercore ISI increased their price objective from $15.00 to $17.00, maintaining an “in-line” rating.
Other analysts, including Barclays, boosted their target price from $14.00 to $16.00, while DA Davidson lifted their target from $12.00 to $15.00, both issuing “neutral” ratings. The consensus among analysts now reflects one “buy” rating, fifteen “hold” ratings, and one “sell” rating. According to data from MarketBeat.com, UiPath currently holds an average rating of “hold” with a consensus price target of $16.00.
UiPath’s Financial Performance and Institutional Trading
In its most recent quarterly earnings report released on December 3, 2023, UiPath announced earnings of $0.16 per share, surpassing the analyst consensus estimate of $0.14 by $0.02. The company reported revenue of $411.11 million, exceeding the expected $392.46 million. This represented a year-over-year revenue increase of 15.9% compared to the same period last year.
The company’s market capitalization stands at $8.76 billion, with a price-to-earnings ratio of 39.00 and a beta of 1.10. Analysts project that UiPath will report earnings of -0.17 per share for the current fiscal year.
Institutional trading has also seen notable changes recently. Raymond James Financial Inc. increased its position in UiPath by 58.4% in the first quarter, acquiring an additional 253,113 shares. Northwestern Mutual Wealth Management Co. raised its holdings by 17.5% during the same period, while Comerica Bank boosted its position by 134.8%. These activities indicate a growing interest from institutional investors, who collectively own 62.50% of the company’s stock.
As UiPath continues to evolve, its innovative automation solutions remain central to its business strategy, addressing a wide array of applications in regions including the United States, Europe, and beyond. The company’s commitment to providing robust robotic process automation (RPA) tools positions it as a key player in the digital transformation landscape.
