UiPath: A Calculated Gamble

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Lumbard & Kellner, LLC, a firm with a reputation for spotting opportunities where others see only spreadsheets, has taken a position in UiPath. A modest 224,337 shares, to be precise. A sum that, while not enough to shift the tectonic plates of the market, is certainly enough to raise an eyebrow. Or, in our case, to inspire a brief dispatch.

A Curious Acquisition

The transaction, dutifully recorded in a February 3rd filing, amounts to approximately $3.68 million, calculated using the quarterly average price. A tidy sum, to be sure. Though, as any seasoned gambler knows, the size of the wager is far less important than the calculation behind it. The quarter-end value also clocked in at $3.68 million – a testament to the firm’s precision, or perhaps just a fortunate alignment of the stars.

The Fund’s Peculiar Preferences

This foray into automation represents 1.29% of the fund’s reported U.S. equity holdings, totaling $285.53 million. A small slice of the pie, one might say, but then again, the best schemes are often launched with limited capital. The top holdings, for the record, are as follows:

  • NASDAQ:GOOGL: $15.15 million (5.3% of AUM)
  • NYSEMKT:BIL: $14.06 million (4.9% of AUM)
  • NYSE:GS: $10.47 million (3.7% of AUM)
  • NYSE:HBM: $10.31 million (3.6% of AUM)
  • NYSEMKT:SPMD: $9.86 million (3.5% of AUM)

A diverse portfolio, to be certain. Though, one wonders if the analysts at Lumbard & Kellner are secretly practicing sleight of hand alongside their financial modeling.

As of February 2nd, 2026, UiPath shares were trading at $12.54, a rather uninspired performance, down 11.8% year-over-year. It underperformed the S&P 500 by a rather substantial 27.3 percentage points. A clear indication, perhaps, that the market prefers the predictable drudgery of established giants to the disruptive potential of automation.

Company Overview: The Numbers Tell a Tale

Metric Value
Price (as of market close February 2, 2026) $12.54
Market capitalization $6.41 billion
Revenue (TTM) $1.55 billion
Net income (TTM) $229.7 million

A Snapshot of the Enterprise

  • UiPath provides an end-to-end automation platform, leveraging robotic process automation (RPA), artificial intelligence, and low-code tools. Essentially, it builds digital workers – a concept that should appeal to any manager weary of human error.
  • Revenue is generated through software licensing, maintenance, and professional services. A reliable model, though one that relies on convincing enterprises that robots are, in fact, their friends.
  • The company serves a diverse clientele, including banks, hospitals, and government agencies. A broad base, to be sure, but one that also requires navigating a labyrinth of bureaucratic red tape.

UiPath, in essence, is a provider of digital efficiency. It promises to streamline processes, reduce costs, and free up human employees to pursue more… creative endeavors. A noble goal, to be sure, though one that often translates to fewer jobs and a surplus of disgruntled workers.

What Does This Mean for Investors?

UiPath has been trading in a rather narrow range since suffering a substantial decline in 2021 and 2022. It’s lost over 85% of its value. This, shall we say, presents an intriguing opportunity. A stock that has fallen this far has only one way to go – up, of course, assuming the underlying business doesn’t collapse first.

The valuation has indeed fallen dramatically. At the time of its 2021 IPO, the price-to-sales (P/S) ratio exceeded 60. Now, it trades at a mere 4.4 times sales. A significant correction, to be sure, though one that raises the question: is it a bargain, or a trap?

More importantly, UiPath has finally turned profitable. Amidst the stock’s decline, its P/E ratio is 30, close to the S&P 500 average. A remarkable turnaround, one might say, though it begs the question: why did it take so long?

Its forward P/E ratio now stands at 16, suggesting that this robotics stock has become a value play. Investors should also note that its largest holding is Alphabet, which, as recently as last April, traded at a P/E ratio below 20. A curious coincidence, perhaps, or a sign that the smart money is shifting its allegiances.

We do not know why Lumbard & Kellner purchased UiPath, but they may perceive it as a value play amid the low forward earnings multiple. Considering the company’s profit growth, that could eventually turn out to be a correct assessment. Or, of course, it could be a spectacular miscalculation. Such is the nature of the market, and the folly of man.

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2026-02-04 02:03