Is UiPath Stock a Buy or Sell After Its CEO Dumped Shares Worth $1.5 Million?

Daniel Dines, CEO and Chairman of UiPath (NYSE:PATH), reported the direct sale of 90,000 Class A Common Stock shares in two open-market transactions on Dec. 22 and Dec. 23, 2025, for a total value of ~$1.5 million according to the SEC Form 4 filing.

Transaction summary

Transaction value based on SEC Form 4 weighted average purchase price ($16.49).

Key questions

• How material was this transaction relative to Mr. Dines's overall ownership?
  This sale represented 90,000 shares of Daniel Dines's direct holdings, with 9.6 million shares held indirectly through Ice Vulcan Holding Limited unaffected by the transaction.
• Did this trade fit the established trading pattern for Mr. Dines?
  The 90,000-share direct sale matches the recent median sell size for Mr. Dines, who has consistently executed trades of this magnitude since July 2025, indicating a methodical reduction in direct holdings.
• What is the composition of Mr. Dines's remaining stake in UiPath?
  Mr. Dines maintains 28,703,585 shares held directly after the sale, and 9,615,297 shares held indirectly through Ice Vulcan Holding Limited, as disclosed in the filing's footnotes.
• How does the transaction timing relate to market conditions and capacity?
  The sale was completed at a weighted average price around $16.49 per share, close to the market open and close range on Dec. 23, 2025, and follows a one-year share price increase of 27.77%.

Company overview

* 1-year price change calculated using Dec. 23, 2025 as the reference date.

Company snapshot

• UiPath offers an end-to-end automation platform featuring robotic process automation (RPA), artificial intelligence-driven process mining, low-code development, and centralized management tools.
• It generates revenue through maintenance and support for its software, as well as professional services such as training and implementation.
• The company serves enterprise customers across banking, healthcare, financial services, and government sectors.

UiPath is a global leader in automation software, leveraging artificial intelligence and RPA to help enterprises streamline operations and boost productivity. With a robust platform and a focus on scalable, low-code solutions, the company enables organizations to automate complex workflows and maintain compliance standards.

UiPath's strategy centers on expanding its automation ecosystem and serving a broad range of industries seeking digital transformation.

What this transaction means for investors

The sale of 90,000 UiPath shares in two separate 45,000-share transactions by CEO Daniel Dines follows a trend he has established, suggesting he has executed sales based on an established trading plan, such as a Rule 10b5-1 plan. Moreover, he still retains over 28.7 million directly-held and 9.6 million indirect shares. So his Dec. 22 and Dec. 23 dispositions are not a cause for alarm.

The timing of the sale was fortuitous for Mr. Dines as UiPath shares were up about 30% at the time. The stock had reached a 52-week high of $19.84 on Dec. 8.

UiPath has enjoyed robust revenue growth due to its artificial intelligence-based automation solutions. In its fiscal third quarter, ended Oct. 31, the company posted sales of $411 million, a 16% year-over-year increase. Moreover, UiPath notched a profitable quarter with operating income of $13.1 million compared to an operating loss of $43.4 million in the prior year.

The company is doing well, and that's helped its stock price soar. As a result, shares sport a P/E ratio hovering around 40, which indicates the stock is expensive. So now is a good time to sell shares, but for investors who want to buy the stock, wait for the share price to drop.

Glossary

Form 4: A required SEC filing disclosing insider trades of company stock by executives, directors, or significant shareholders.
Open-market transaction: The purchase or sale of securities on a public exchange, not through private or pre-arranged deals.
Disposition: The act of selling or otherwise transferring ownership of an asset, such as company shares.
Direct holdings: Shares owned personally by an individual, not through another entity or trust.
Indirect holdings: Shares owned through another entity, such as a holding company, trust, or partnership.
Weighted average price: The average price of shares sold or bought, weighted by the number of shares at each price.
Cadence: The regular frequency or pattern of repeated actions, such as recurring stock sales.
Capacity (in trading): The total amount of shares available for an individual to sell or trade directly.
Robotic process automation (RPA): Technology that uses software robots to automate repetitive, rule-based business tasks.
Process mining: Analyzing digital records to discover, monitor, and improve real business processes using data.
Low-code development: Creating software applications with minimal manual coding, often using visual tools and prebuilt templates.
TTM: The 12-month period ending with the most recent quarterly report.

Robert Izquierdo has positions in UiPath. The Motley Fool has positions in and recommends UiPath. The Motley Fool has a disclosure policy.