Why Is UiPath Stock Down 20% Today?

UiPath Inc PATH shares are trading lower Wednesday after the company reported financial results and issued weak guidance.

Q2 Results: UiPath said fiscal second-quarter revenue increased 24% year-over-year to $242.2 million, which beat average analyst estimates of $230.81 million, according to Benzinga Pro. The company said annual recurring revenue climbed above $1 billion during the second quarter. 

UiPath reported a second-quarter net loss of 2 cents per share, which beat average analyst estimates for a loss of 11 cents per share.

Outlook: UiPath expects fiscal third-quarter revenue to be between $243 million and $245 million versus the estimate of $269.6 million. The company sees full-year revenue in a range of $1.002 billion to $1.007 billion versus the estimate of $1.09 billion. 

Analyst Assessment: Several analysts adjusted price targets on the stock following UiPath's quarterly results. 

• Morgan Stanley analyst Keith Weiss downgraded UiPath from Overweight to Equal-Weight and lowered the price target from $32 to $15.
• Credit Suisse analyst Phil Winslow maintained UiPath with an Outperform and lowered the price target from $45 to $37.5.
• Mizuho analyst Siti Panigrahi downgraded UiPath from Buy to Neutral and lowered the price target from $40 to $14.
• RBC Capital analyst Matthew Hedberg maintained UiPath with a Sector Perform and lowered the price target from $22 to $18.
• Wells Fargo analyst Michael Turrin maintained UiPath with an Overweight and lowered the price target from $30 to $22.

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PATH Price Action: UiPath is making new 52-week lows on Wednesday.

The stock was down 22.6% at $12.06 at time of publication.

Photo: courtesy of UiPath.