Shares of UiPath (NYSE:PATH) are in full focus following the submission of a Form 4 from Director Rich Wong. The filing notes that Wong sold 100,000 shares of PATH stock at an average price of $16.38 per share on Sept. 22. In total, the transaction was worth $1.63 million.
It’s worth noting that the sale was enacted via a prearranged 10b5-1 trading plan, meaning that the sale was planned in advance. The date that the 10b5-1 plan was enacted was not disclosed in the filing. Following the sale, Wong still owns 779,693 shares of UiPath through a trust and 37,403 shares directly.
Besides the recent sale, Wong has sold PATH stock on two other occasions this year. The director sold $781,000 worth of shares on June 20 and another $1.01 million worth of shares on July 11. These two sales were also enacted under Wong’s 10b5-1 plan.
UI Stock: Director Rich Wong Sells 100,000 Shares
PATH stock has appreciated by more than 30% so far this year, outperforming the S&P 500’s return of about 11% year-to-date (YTD) by a wide margin. As a result, it isn’t entirely surprising to see some insiders sell out. In the past three years, Wong has never purchased shares of UiPath on the open market while disclosing sales worth $309.22 million.
So, how do other UiPath insiders feel about their stock? During the past year, insiders have purchased zero shares of their company on the open market while selling out of $11.99 million worth of shares. During the past three years, insiders have never purchased shares of their company on the open market either, although they have reported a whopping $1.26 billion worth of sales. UiPath made its public debut on the New York Stock Exchange in April 2021. Since then, shares have experienced a significant 78% decline.
This doesn’t mean that UiPath is a bad company. Rather, it seems that PATH was valued too richly during its initial public offering (IPO). Since then, UiPath has experienced slowing year-over-year (YOY) revenue growth, falling margins and, as a result, a lower enterprise value (EV) to sales multiple. UiPath has also been a major beneficiary of the artificial intelligence (AI) narrative this year, although the trend has lost steam in the past few weeks.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
