Vanguard Group Inc. has reduced its stake in Upwork Inc. (NASDAQ: UPWK) by 2.6%, according to its latest Form 13F filing with the Securities and Exchange Commission. The investment firm now holds 14,666,762 shares after selling 396,208 shares during the third quarter of 2023. This adjustment means Vanguard owns approximately 11.23% of Upwork, valued at around $272.4 million.
Several other institutional investors have also made changes to their holdings in Upwork. Elevation Point Wealth Partners LLC acquired a new position in the company during the second quarter, valued at approximately $30,000. Fifth Third Bancorp significantly increased its stake by 2,405.7%, now owning 1,754 shares worth $33,000. Additionally, EMC Capital Management bought a new position valued at approximately $45,000 in the same period, while EverSource Wealth Advisors LLC raised its holdings by an astonishing 19,361.1%, now holding shares worth $47,000. Parkside Financial Bank & Trust also increased its stake by 10,417.9%, bringing its total to 4,102 shares valued at $76,000. Currently, institutional investors own about 77.71% of Upwork’s stock.
Analysts Adjust Price Targets for Upwork
Upwork has recently attracted attention from analysts, leading to revisions in price targets. Zacks Research downgraded Upwork from a “strong-buy” to a “hold” rating on February 2, 2024. The Royal Bank of Canada decreased its price target from $24.00 to $20.00 while maintaining a “sector perform” rating in a note dated February 10, 2024. Weiss Ratings reaffirmed a “hold (c+)” rating on January 21, 2024. In contrast, Canaccord Genuity set a target price of $22.00 on February 10, while Jefferies Financial Group raised its target from $22.00 to $27.00 and assigned a “buy” rating on January 5, 2024. Seven analysts currently rate Upwork as a Buy, whereas six analysts suggest holding the stock, leading to an average rating of “Moderate Buy” and a consensus target price of $22.60, according to MarketBeat.
Current Performance and Share Buyback Plan
As of the last trading session, Upwork shares opened at $13.42, giving the company a market capitalization of $1.75 billion. The stock has demonstrated a price-to-earnings ratio of 15.98 and a beta of 1.06. Over the past year, Upwork’s stock has fluctuated between a low of $11.13 and a high of $22.84. The company’s 50-day simple moving average stands at $18.26, while the 200-day average is $17.76.
In a significant move, Upwork’s board approved a share buyback plan on February 18, 2024, allowing the company to repurchase up to $300 million in outstanding shares. This authorization enables Upwork to reacquire up to 18% of its stock through open market purchases, a strategy often interpreted as a sign that company leadership believes its shares are undervalued.
Insider Transactions Raise Questions
Further developments include notable insider transactions. On February 18, 2024, insider Dave Bottoms sold 17,013 shares at an average price of $13.80, totaling approximately $234,779.40. Following this sale, Bottoms’ ownership decreased by 51.54%, leaving him with 15,994 shares valued at about $220,717.20. In a separate transaction, CEO Hayden Brown sold 123,152 shares, also at an average price of $13.80, amounting to $1,699,497.60. After this transaction, Brown’s stake decreased by 13.70%, leaving him with 776,067 shares valued at approximately $10,709,724.60. In the past 90 days, insiders sold a total of 235,204 shares worth $3,602,486, and insiders now hold 7.50% of the stock.
About Upwork Inc.
Upwork Inc. operates a prominent online talent marketplace, connecting businesses with independent professionals globally. Its platform serves clients across various industries, including technology, marketing, creative services, and customer support, facilitating the sourcing, hiring, and management of freelance talent. Key features of Upwork’s platform include streamlined job posting, proposal evaluation, time-tracking tools, invoicing, and secure payment processing, designed to enhance collaboration between clients and remote workers. The company’s roots trace back to the merger of Elance, founded in 1998, and oDesk, founded in 2003, which together formed Upwork in 2015.
For more information on Upwork’s performance and institutional holdings, visit HoldingsChannel.com for the latest updates on 13F filings and insider trades.
