Robotic process automation software company UiPath (NYSE:PATH) had its worst trading day ever on Thursday when the stock crashed by 34%. This resulted in Cathie Wood‘s Ark Invest raising its stake in the company. ARK Invest, founded by Wood in 2014, bought 1.5 million shares worth over $28 million of UiPath on Thursday in five separate tranches.
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Who Owns UiPath?
PATH shares now make up around 4.6% of ARK Invest’s portfolio. ARK is one of the top shareholders in UiPath, with a stake of 6.5% as of March 31. Overall, institutional investors own more than 60% of the company’s stock.
Why Is PATH Stock on a Decline?
The company’s stock traded just above its yearly low on May 30, with a closing price of $12.07. Year-to-date, PATH has tanked by more than 45%. This comes after the company announced that its CEO, Rob Enslin, would resign and be replaced by founder and former CEO Daniel Dines.
Moreover, the company’s huge guidance miss after its Q1 results left investors worried. Looking forward, management expects its second-quarter revenue to be between $300 million and $305 million (below the consensus of $342.07 million) and adjusted operating income to be breakeven. For FY25, revenue is projected at $1.405 billion to $1.410 billion (below the consensus of $1.56 billion) with an adjusted operating profit of $145 million.
Is PATH a Good Stock to Buy?
Analysts remain sidelined about PATH stock, with a Hold consensus rating based on three Buys and 16 Holds. The average PATH price target of $19.57 implies an upside potential of 62.1% from current levels.
