UiPath (PATH) Stock Drops 8% Despite Beating Revenue Estimates

TLDR

• UiPath fell 7.7% on Wednesday, hitting a low of $11.00, down from a prior close of $12.04.
• Volume was unusually low, at 85% below the average session volume.
• Most analysts rate PATH a “Hold” with a consensus price target of $13.80.
• Latest quarterly revenue came in at $418.38 million, up 17.3% year over year, beating estimates.
• Convergence Investment Partners initiated a new $4.4 million position in PATH in Q1.

UiPath (PATH) dropped 7.7% on Wednesday, touching an intraday low of $11.00 before last trading at $11.11. The prior close was $12.04.

UiPath Inc., PATH

What made the move unusual was the volume. Only around 6.4 million shares changed hands — roughly 85% below the average session volume of 41.4 million. That kind of thin trading can make price swings look more dramatic than they might otherwise be.

The stock’s 50-day moving average sits at $11.11, and the 200-day moving average is at $11.75. The market cap stands at approximately $5.50 billion.

Where Analysts Stand

The analyst picture is mostly cautious. Of the 17 analysts covering PATH, 14 rate it a “Hold,” two have a “Buy,” and one has a “Sell.” The consensus price target is $13.80.

Recent moves have not been bullish. BMO Capital Markets cut its target from $14 to $13 with a “market perform” rating. Morgan Stanley trimmed its target from $17 to $15 with an “equal weight.” UBS dropped its target from $13 to $12, keeping a “neutral” rating. Bank of America raised its target slightly from $12 to $13 but kept an “underperform” rating.

Needham remains the most optimistic, reiterating a “buy” with a $15 target.

Recent Earnings Were Actually Solid

The drop comes despite PATH posting a decent quarter in late May. Revenue for the period came in at $418.38 million, well above the analyst estimate of $397.54 million. That represented 17.3% growth year over year.

EPS came in at $0.15, matching consensus. The same quarter last year delivered $0.11 EPS. Net margin was 19.58%, and return on equity was 7.92%.

For the full fiscal year, analysts expect $0.40 EPS.

The stock has a 52-week low of $9.20 and a 52-week high of $19.84 — putting Wednesday’s trading well below where it was at its best point over the past year.

On the institutional side, Convergence Investment Partners initiated a new position in Q1, buying 396,363 shares worth approximately $4.4 million, giving them about a 0.08% stake. Institutional investors collectively own 62.50% of the company.

Several smaller funds also added new positions in Q4, including HighMark Wealth Management, Raleigh Capital Management, and Atlas Capital Advisors, though all at modest values under $40,000.

PATH last traded at $11.11 on Wednesday, with the stock sitting near its 50-day moving average.

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