UiPath (NYSE:PATH) shares are in focus today after the enterprise automation software company disclosed restructuring actions that include a 10% reduction in its global headcount.
PATH’s Focus on Efficiency
UiPath is undertaking restructuring actions to manage its operating expenses. The company expects a significant portion of its headcount reduction to occur by the end of Q1 FY2026. This move aims to boost operational efficiency and prioritize PATH’s go-to-market investments. Additionally, PATH plans to focus its R&D investments on AI and innovation in its platform offerings.
Challenges in its Path
UiPath’s share price has plunged by nearly 41% over the past three months amid several concerns. Earlier, PATH delivered better-than-anticipated Q1 results but issued a disappointing outlook. Additionally, the abrupt departure of its CEO, Rob Enslin, spooked investors. Enslin was succeeded by PATH’s founder and former CEO, Daniel Dines.
Follow the Smart Money
Despite these challenges, it could be a mistake for investors to overlook PATH. The TipRanks Hedge Fund Activity tool suggests that smart money is gradually going long on PATH. Ray Dalio’s Bridgewater Associates and Kenneth Tropin’s Graham Capital Management have recently entered positions in PATH. However, Cathie Wood’s ARK Investment Management has trimmed its position in the company.
What Is the Price Forecast for UiPath?
Meanwhile, analysts are preferring to sit on the sidelines on PATH with a Hold consensus rating. Overall, the Street has an average PATH price target of $15.50.
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