UiPath (NYSE:PATH) Shares Gap Down Following Analyst Downgrade

UiPath, Inc. (NYSE:PATH) gapped down before the market opened on Thursday after DA Davidson lowered their price target on the stock from $15.00 to $13.00. The stock had previously closed at $12.38, but opened at $10.95. DA Davidson currently has a neutral rating on the stock. UiPath shares last traded at $11.5670, with a volume of 35,997,746 shares.

A number of other research firms have also recently weighed in on PATH. TD Cowen reaffirmed a “hold” rating on shares of UiPath in a research report on Thursday, December 4th. Wall Street Zen cut UiPath from a “strong-buy” rating to a “buy” rating in a research note on Sunday, February 8th. Evercore raised their price target on UiPath from $15.00 to $17.00 and gave the stock an “in-line” rating in a research report on Thursday, December 4th. Zacks Research cut UiPath from a “strong-buy” rating to a “hold” rating in a research note on Friday, February 6th. Finally, Royal Bank Of Canada set a $14.00 target price on UiPath in a research note on Wednesday, February 11th. Two investment analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $14.86.

Insider Buying and Selling at UiPath

In other news, CEO Daniel Dines sold 45,000 shares of UiPath stock in a transaction dated Monday, January 5th. The stock was sold at an average price of $15.73, for a total value of $707,850.00. Following the completion of the transaction, the chief executive officer owned 28,343,585 shares in the company, valued at approximately $445,844,592.05. This trade represents a 0.16% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Ashim Gupta sold 67,468 shares of the business’s stock in a transaction dated Monday, January 5th. The stock was sold at an average price of $16.10, for a total value of $1,086,234.80. Following the transaction, the chief financial officer directly owned 557,028 shares of the company’s stock, valued at approximately $8,968,150.80. This represents a 10.80% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 832,468 shares of company stock valued at $13,668,235 over the last three months. 23.19% of the stock is currently owned by insiders.

Key UiPath News

Here are the key news stories impacting UiPath this week:

• Positive Sentiment: Q4 beat — UiPath reported revenue of $481.1M and non‑GAAP EPS $0.30, both topping Street expectations; ARR grew to $1.853B, supporting the company’s narrative of enterprise AI adoption moving to scaled deployment. Read More.
• Positive Sentiment: Capital return and long‑term targets — management set a $2B ARR target for FY27 and unveiled a $500M buyback, which reduces float and can support EPS and investor sentiment over time. Read More.
• Neutral Sentiment: Near‑term revenue guide mostly in line — UiPath gave Q1 revenue guidance slightly above Street at the midpoint (~$397.5M), which is a modest beat but not strong enough to offset concerns about FY growth deceleration. Read More.
• Neutral Sentiment: Unusual options activity — elevated call buying (≈94,510 contracts) signals active trader interest but could reflect short‑term speculation rather than conviction.
• Negative Sentiment: Guidance and growth deceleration spooked investors — despite the beat, management’s outlook implies slower full‑year revenue growth, prompting a post‑earnings selloff and after‑hours slide. Read More.
• Negative Sentiment: Analyst pushback — Morgan Stanley cut its price target from $19 to $17 and moved to an “equal weight” stance, a sign some sell‑side desks are trimming expectations despite upside potential cited. Read More.
• Negative Sentiment: Market skepticism remains — commentary highlights decelerating revenue growth and questions about how much AI adoption will translate into sustained upside, keeping the bull case tempered. Read More.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in PATH. Hudson Bay Capital Management LP acquired a new stake in UiPath in the second quarter valued at $102,559,000. Norges Bank purchased a new stake in UiPath during the fourth quarter worth approximately $120,176,000. State Street Corp boosted its holdings in UiPath by 66.4% in the fourth quarter. State Street Corp now owns 13,004,786 shares of the company’s stock valued at $213,148,000 after purchasing an additional 5,189,438 shares in the last quarter. AQR Capital Management LLC increased its stake in UiPath by 76.0% in the second quarter. AQR Capital Management LLC now owns 11,407,569 shares of the company’s stock valued at $145,732,000 after purchasing an additional 4,926,341 shares during the last quarter. Finally, TFG Asset Management GP Ltd raised its holdings in UiPath by 53.3% during the second quarter. TFG Asset Management GP Ltd now owns 13,722,244 shares of the company’s stock worth $175,645,000 after purchasing an additional 4,772,244 shares in the last quarter. Institutional investors and hedge funds own 62.50% of the company’s stock.

UiPath Stock Performance

The firm’s 50-day moving average price is $13.15 and its two-hundred day moving average price is $13.99. The firm has a market cap of $6.12 billion, a PE ratio of 27.42, a P/E/G ratio of 1.58 and a beta of 1.09.

UiPath (NYSE:PATH) last announced its quarterly earnings results on Wednesday, March 11th. The company reported $0.30 earnings per share for the quarter, beating analysts’ consensus estimates of $0.25 by $0.05. UiPath had a net margin of 14.79% and a return on equity of 3.73%. The firm had revenue of $481.11 million during the quarter, compared to analysts’ expectations of $464.81 million. During the same period in the previous year, the company earned $0.26 earnings per share. UiPath’s quarterly revenue was up 13.4% compared to the same quarter last year. As a group, sell-side analysts predict that UiPath, Inc. will post -0.17 earnings per share for the current fiscal year.

UiPath Company Profile

UiPath Inc provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, the United Kingdom, the Netherlands, and internationally. The company offers a suite of interrelated software to build, manage, run, engage, measure, and govern automation within the organization. Its platform's embedded AI, ML, and NLP capabilities improve decisioning and information processing; emulate human behavior allows organizations to address a myriad of use cases; emulate human behavior allows organizations to address a myriad of use cases; multi-tenant platform enterprise deployment with security and governance and Automation Cloud, which enables customers to begin automating without the need to provision infrastructure, install applications, or perform additional configurations; intuitive interface and low-code, drag-and-drop functionality; signed to enable people and automations to work together; and tracks, measures, and forecasts the performance of automations, enables customers to gain powerful insights and generate key performance indicators with actionable metric.