Coursera (NYSE:COUR) Given New $5.00 Price Target at Royal Bank Of Canada

Key Points

• Royal Bank of Canada cut Coursera’s price target from $7 to $5 while maintaining an “outperform” rating, implying roughly 32.8% upside from the prior close. The analyst consensus remains “Hold,” with an average target of $6.70.
• Coursera shares fell 19.2% to $3.77, near the stock’s 12-month low, despite the company beating quarterly earnings and revenue estimates with $0.21 EPS and $376.7 million in revenue.
• Investor concerns center on Coursera’s negative net margin and softer fourth-quarter revenue guidance of $358 million to $366 million, although management expects more than $150 million in gross cost savings by year-end.

Coursera (NYSE:COUR - Get Free Report) had its target price reduced by Royal Bank Of Canada from $7.00 to $5.00 in a report issued on Friday, Benzinga reports. The brokerage presently has an "outperform" rating on the stock. Royal Bank Of Canada's price target suggests a potential upside of 32.80% from the company's previous close.

Other equities analysts have also issued reports about the company. The Goldman Sachs Group upgraded Coursera from a "sell" rating to a "neutral" rating and increased their price objective for the company from $5.50 to $6.50 in a research report on Monday, August 3rd. Telsey Advisory Group set a $7.00 target price on Coursera in a research note on Friday. BMO Capital Markets reduced their price target on shares of Coursera from $8.00 to $6.00 and set an "outperform" rating on the stock in a research report on Monday, October 5th. KeyCorp downgraded shares of Coursera from an "overweight" rating to a "sector weight" rating in a research note on Friday. Finally, Needham & Company LLC lowered their price objective on shares of Coursera from $10.00 to $6.00 and set a "buy" rating for the company in a report on Friday. Five analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $6.70.

Coursera Trading Down 19.2%

Shares of COUR traded down $0.90 during trading hours on Friday, reaching $3.77. 8,285,664 shares of the company's stock traded hands, compared to its average volume of 6,013,701. Coursera has a 12 month low of $3.68 and a 12 month high of $8.89. The stock has a market cap of $995.47 million, a PE ratio of -5.63, a price-to-earnings-growth ratio of 0.49 and a beta of 1.24. The firm's 50 day simple moving average is $5.32 and its 200-day simple moving average is $5.71.

Coursera (NYSE:COUR - Get Free Report) last announced its earnings results on Thursday, October 29th. The company reported $0.21 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.18 by $0.03. The business had revenue of $376.70 million during the quarter, compared to analyst estimates of $368.52 million. Coursera had a negative net margin of 15.39% and a negative return on equity of 1.72%. Coursera's revenue for the quarter was up 94.0% on a year-over-year basis. During the same period in the previous year, the business posted $0.10 earnings per share. As a group, analysts expect that Coursera will post 0.20 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Coursera news, major shareholder Pale Fire Capital Se bought 1,000,000 shares of the business's stock in a transaction that occurred on Tuesday, September 29th. The shares were bought at an average cost of $4.61 per share, with a total value of $4,610,000.00. Following the completion of the purchase, the insider directly owned 28,806,415 shares of the company's stock, valued at $132,797,573.15. This trade represents a 3.60% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CEO Gregory M. Hart sold 10,308 shares of the business's stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $5.11, for a total value of $52,673.88. Following the transaction, the chief executive officer owned 1,539,003 shares in the company, valued at approximately $7,864,305.33. This represents a 0.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 16.30% of the company's stock.

Hedge Funds Weigh In On Coursera

Hedge funds and other institutional investors have recently made changes to their positions in the business. Pinnacle Wealth Planning Services Inc. grew its stake in Coursera by 440.6% in the third quarter. Pinnacle Wealth Planning Services Inc. now owns 28,220 shares of the company's stock worth $140,000 after purchasing an additional 23,000 shares during the period. Total Clarity Wealth Management Inc. purchased a new position in Coursera during the third quarter valued at $178,000. Inspire Investing LLC boosted its holdings in shares of Coursera by 5.1% during the 3rd quarter. Inspire Investing LLC now owns 126,131 shares of the company's stock valued at $626,000 after buying an additional 6,099 shares in the last quarter. SBI Securities Co. Ltd. boosted its holdings in shares of Coursera by 28.4% during the 3rd quarter. SBI Securities Co. Ltd. now owns 15,532 shares of the company's stock valued at $77,000 after buying an additional 3,435 shares in the last quarter. Finally, Counterpoint Mutual Funds LLC purchased a new stake in shares of Coursera in the 3rd quarter worth about $551,000. Institutional investors own 89.55% of the company's stock.

Key Stories Impacting Coursera

Here are the key news stories impacting Coursera this week:

• Positive Sentiment: Coursera reported third-quarter adjusted earnings of $0.21 per share, above analyst expectations of approximately $0.18-$0.19, while revenue of $376.7 million also exceeded consensus estimates. Earnings increased from $0.10 per share in the year-ago quarter, and revenue rose 94% year over year. Coursera Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Management expects more than $150 million in gross cost savings by year-end as integration progresses, supporting the outlook for margin expansion and potential profitability improvements. Coursera Cost Savings and Revenue Outlook
• Positive Sentiment: Unusually heavy call-option activity suggests some traders are positioning for a potential rebound, with call volume reported at roughly 3.5 times its average level. This is a market signal rather than a fundamental change.
• Neutral Sentiment: Coursera forecast fourth-quarter revenue of $358 million to $366 million. The guidance provides visibility into near-term performance, but the range implies a sequential decline from third-quarter revenue and appears to have disappointed investors. Coursera Q3 Results and Guidance
• Negative Sentiment: JPMorgan downgraded COUR from “overweight” to “neutral” and cut its price target from $8 to $5. Although the new target remains above the recent share price, the downgrade reduces a notable source of analyst support. JPMorgan Coursera Rating
• Negative Sentiment: Investors appear more focused on the softer fourth-quarter outlook and Coursera’s continuing negative net margin than on the quarterly earnings beat, contributing to pressure on the stock.

About Coursera

Coursera, Inc is an online learning platform that provides access to courses, professional certificates, guided projects, and degree programs. The company works with universities, colleges, and industry partners to offer content in areas such as business, technology, data science, computer science, and personal development.

Coursera serves individual learners, businesses, governments, and academic institutions in countries around the world. Its enterprise and government offerings support employee training, workforce development, and large-scale education initiatives, while its consumer platform allows learners to enroll in individual courses or broader credential and degree programs.

Coursera was founded in 2012 by computer-science professors Andrew Ng and Daphne Koller.

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