Coursera (NYSE:COUR) Lowered to Hold Rating by Zacks Research

Key Points

• Zacks Research downgraded Coursera from “strong buy” to “hold,” although the broader analyst consensus remains “Moderate Buy” with an average price target of $8.55.
• Coursera reported quarterly results above expectations, with EPS of $0.17 versus the $0.10 consensus and revenue of $298.6 million, up 59.6% year over year. However, the company continues to report negative net margins and return on equity.
• The company authorized a $500 million share buyback, potentially covering up to 55.9% of outstanding shares, while institutional investors own approximately 89.55% of the stock.

Coursera (NYSE:COUR - Get Free Report) was downgraded by investment analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Monday,Zacks.com reports.

A number of other research firms have also recently commented on COUR. Royal Bank Of Canada reissued an "outperform" rating and issued a $7.00 target price on shares of Coursera in a research note on Wednesday, June 24th. BMO Capital Markets restated an "outperform" rating on shares of Coursera in a research report on Thursday, July 30th. KeyCorp reiterated an "overweight" rating on shares of Coursera in a report on Wednesday, June 24th. Weiss Ratings cut Coursera from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Tuesday, August 11th. Finally, The Goldman Sachs Group upgraded Coursera from a "sell" rating to a "neutral" rating and boosted their price target for the company from $5.50 to $6.50 in a report on Monday, August 3rd. Seven investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $8.55.

Coursera Stock Performance

Coursera stock opened at $6.18 on Monday. The stock has a market cap of $1.63 billion, a P/E ratio of -9.23, a PEG ratio of 0.76 and a beta of 1.24. Coursera has a fifty-two week low of $5.00 and a fifty-two week high of $12.32. The firm's fifty day moving average price is $5.69 and its 200-day moving average price is $5.78.

Coursera (NYSE:COUR - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The company reported $0.17 earnings per share for the quarter, topping the consensus estimate of $0.10 by $0.07. The company had revenue of $298.60 million for the quarter, compared to analysts' expectations of $293.61 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 59.6% compared to the same quarter last year. During the same period in the prior year, the business earned $0.12 earnings per share. Sell-side analysts predict that Coursera will post 0.16 earnings per share for the current year.

Coursera announced that its Board of Directors has approved a share buyback plan on Monday, May 18th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the company to reacquire up to 55.9% of its stock through open market purchases. Stock buyback plans are often an indication that the company's management believes its stock is undervalued.

Insider Buying and Selling

In other Coursera news, SVP Alan B. Cardenas sold 9,139 shares of the company's stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $5.71, for a total value of $52,183.69. Following the sale, the senior vice president owned 236,237 shares in the company, valued at approximately $1,348,913.27. This represents a 3.72% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 16.30% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in COUR. Aster Capital Management DIFC Ltd purchased a new stake in shares of Coursera in the fourth quarter worth $25,000. Optiver Holding B.V. bought a new position in shares of Coursera during the first quarter valued at $31,000. Versant Capital Management Inc raised its position in shares of Coursera by 63.2% in the 2nd quarter. Versant Capital Management Inc now owns 5,555 shares of the company's stock worth $31,000 after purchasing an additional 2,152 shares during the last quarter. Caitong International Asset Management Co. Ltd raised its position in shares of Coursera by 224.1% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 4,939 shares of the company's stock worth $36,000 after purchasing an additional 3,415 shares during the last quarter. Finally, Clearstead Trust LLC bought a new position in Coursera in the 4th quarter worth about $39,000. Hedge funds and other institutional investors own 89.55% of the company's stock.

About Coursera

Coursera, Inc NYSE: COUR operates a leading online learning platform that delivers courses, specializations, professional certificates and fully accredited degree programs in collaboration with top universities and industry partners. Founded in 2012 by Stanford University professors Andrew Ng and Daphne Koller, Coursera's mission is to provide universal access to world-class education and bridge skill gaps in a rapidly evolving job market.

The platform features more than 6,000 offerings created by over 275 academic institutions and corporate entities, spanning fields such as data science, business, technology, health care and the arts.

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