TLDR
- DA Davidson downgraded UiPath to Underperform from Neutral, cutting its price target to $10.
- The downgrade centers on pushback over AI pricing raised at UiPath’s FUSION event and Investor Day.
- PATH stock has fallen 8% over the past week and trades below both its 50-day and 200-day moving averages.
- Wall Street’s broader consensus remains Hold, with an average price target of $15.69.
- UiPath beat Q2 estimates on revenue and EPS, but insiders sold over $24 million in stock over 90 days.
UiPath (PATH) stock is under fresh pressure after DA Davidson cut its rating to Underperform from Neutral on Monday. The firm also lowered its price target to $10, well below where the stock currently sits.
Shares of the automation company opened at $12.23 and have dropped 8% over the past week. That puts the stock below both its 50-day moving average of $14.53 and close to its 200-day average of $12.24.
Analyst Lucky Schreiner pointed to pricing pressure as the main driver of the downgrade. The concern followed DA Davidson’s attendance at UiPath’s FUSION event and its Investor Day.
UiPath used the event to lay out a vertical go-to-market strategy and pre-packaged solutions meant to speed up customer results. The company also highlighted its focus on determinism and larger deployments when customers combine orchestration with automation tools.
Feedback from customers and partners at the event was mixed. Pushback on AI pricing stood out as the key sticking point cited by DA Davidson.
Wall Street Split on UiPath
Not every analyst agrees with the downgrade. The broader Wall Street consensus rating on PATH remains Hold, with an average price target of $15.69.
Several firms have trimmed targets recently while keeping neutral stances. BMO Capital Markets cut its target to $15 from $18, and UBS lowered its target to $15 from $19 after UiPath skipped a preliminary fiscal 2028 revenue guide.
TD Cowen kept a $16 target and a Hold rating, while RBC Capital cut its target to $15 over execution concerns. Truist Securities lowered its target to $14, and Bank of America raised its target to $15 while keeping an Underperform rating.
Across all coverage, four analysts rate PATH a Buy, fifteen rate it a Hold, and two rate it a Sell.
Earnings and Insider Activity
UiPath’s last earnings report, released September 3, came in ahead of estimates. The company posted EPS of $0.15, matching expectations, on revenue of $410.26 million versus the $397.77 million analysts had forecast.
Revenue grew 13.3% year-over-year. Net margin came in at 21.03%, and return on equity stood at 9.70%. Analysts expect UiPath to post $0.49 in EPS for the current fiscal year.
Insider selling has picked up alongside the stock’s decline. Raghavendra Malpani sold 40,464 shares on September 17 at an average price of $14.00, worth $566,496.
COO Ashim Gupta sold 117,339 shares on September 11 at an average price of $13.85, a transaction worth roughly $1.63 million. That sale cut his position by 5.45%.
Over the past 90 days, insiders have sold 1.56 million shares of PATH stock worth a combined $24.7 million. Company insiders currently own 22.44% of the company.
Institutional investors hold a larger piece of UiPath, owning 62.5% of outstanding stock. Several funds added to their positions in recent quarters, including Allworth Financial LP and Corient Private Wealth LLC.
UiPath carries a market cap of $6.37 billion, a PE ratio of 18.25, and a beta of 1.02. The stock’s 52-week range spans from $9.20 to $19.84.
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