Upwork (NASDAQ:UPWK) Shares Gap Down on Analyst Downgrade

Upwork Inc. (NASDAQ:UPWK) gapped down prior to trading on Tuesday after Scotiabank lowered their price target on the stock from $17.00 to $15.00. The stock had previously closed at $18.79, but opened at $15.00. Scotiabank currently has a sector perform rating on the stock. Upwork shares last traded at $15.8350, with a volume of 3,806,157 shares traded.

Several other analysts also recently weighed in on UPWK. Canaccord Genuity Group set a $22.00 price target on Upwork in a research report on Tuesday. Weiss Ratings restated a “hold (c+)” rating on shares of Upwork in a research note on Wednesday, January 21st. UBS Group reaffirmed a “buy” rating and issued a $26.00 price objective on shares of Upwork in a report on Wednesday, January 14th. Wall Street Zen cut shares of Upwork from a “buy” rating to a “hold” rating in a research note on Friday, January 23rd. Finally, Citigroup decreased their price objective on shares of Upwork from $19.00 to $17.00 and set a “neutral” rating for the company in a report on Tuesday. Eight analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $23.36.

Insider Buying and Selling

In other Upwork news, Director Gary Steele sold 12,500 shares of the firm’s stock in a transaction dated Friday, November 21st. The shares were sold at an average price of $17.51, for a total value of $218,875.00. Following the completion of the transaction, the director directly owned 85,129 shares in the company, valued at $1,490,608.79. This trade represents a 12.80% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, insider Dave Bottoms sold 11,285 shares of the business’s stock in a transaction that occurred on Thursday, December 18th. The shares were sold at an average price of $20.59, for a total transaction of $232,358.15. Following the sale, the insider owned 9,967 shares in the company, valued at $205,220.53. This represents a 53.10% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 523,248 shares of company stock worth $10,029,741. Company insiders own 7.60% of the company’s stock.

Upwork News Summary

Here are the key news stories impacting Upwork this week:

• Positive Sentiment: Recorded full‑year 2025 revenue of $787.8M and record adjusted EBITDA of $225.6M — shows scale and margin expansion that supports longer‑term profitability. GlobeNewswire
• Positive Sentiment: Needham & Company reiterated a Buy rating and set a $25 price target (~62.8% above current levels), providing analyst support that could limit downside for some investors. Benzinga
• Neutral Sentiment: The company is emphasizing AI integration and strategic initiatives on the earnings call — these are constructive for the business model but represent longer‑term optionality rather than immediate revenue upside. Yahoo Finance
• Negative Sentiment: Q1 2026 guidance was cut: EPS of $0.26–$0.28 vs. consensus ~$0.36 and revenue guidance of $192M–$197M vs. ~$201M consensus — the weaker near‑term outlook is the primary driver of today’s sell‑off.
• Negative Sentiment: Mixed/missed Q4 prints: reported revenue ~$198.4M (below some estimates) and several outlets flagged EPS misses on certain measures — these misses contributed to a steep after‑hours decline. Quiver Quantitative Zacks
• Negative Sentiment: Significant insider selling activity reported over the past 6 months — can raise investor concern about management stock convictions and add selling pressure. Quiver Quantitative (insider data)

Hedge Funds Weigh In On Upwork

Large investors have recently made changes to their positions in the business. Financial Gravity Companies Inc. acquired a new position in Upwork in the second quarter worth $5,118,000. Ruffer LLP acquired a new position in Upwork during the 3rd quarter worth about $2,716,000. Aviance Capital Partners LLC bought a new stake in Upwork during the 2nd quarter worth about $619,000. Campbell & CO Investment Adviser LLC increased its position in Upwork by 80.6% in the 2nd quarter. Campbell & CO Investment Adviser LLC now owns 251,263 shares of the company’s stock valued at $3,377,000 after acquiring an additional 112,133 shares in the last quarter. Finally, Grandeur Peak Global Advisors LLC raised its stake in shares of Upwork by 27.1% in the second quarter. Grandeur Peak Global Advisors LLC now owns 463,926 shares of the company’s stock worth $6,235,000 after acquiring an additional 98,811 shares during the last quarter. Institutional investors and hedge funds own 77.71% of the company’s stock.

Upwork Price Performance

The stock’s 50 day simple moving average is $20.29 and its two-hundred day simple moving average is $17.72. The company has a market capitalization of $1.98 billion, a P/E ratio of 8.71 and a beta of 1.06.

Upwork Company Profile

Upwork Inc operates a leading online talent marketplace that connects businesses with independent professionals worldwide. Through its digital platform, the company enables clients across industries—including technology, marketing, creative services and customer support—to source, hire and manage freelance talent on demand. Key features of the Upwork platform include streamlined job posting, proposal evaluation, time-tracking tools, invoicing and secure payment processing, all designed to simplify collaboration between clients and remote workers.

The company traces its roots to the merger of two pioneering freelance marketplaces, Elance (founded in 1998) and oDesk (founded in 2003), which combined in 2015 to form a unified entity.