Coursera (NYSE:COUR) Rating Lowered to Neutral at JPMorgan Chase & Co.

Key Points

• JPMorgan downgraded Coursera to “neutral” from “overweight” and set a $5.00 price target, implying 7.74% upside from the previous close. The broader analyst consensus is “Hold,” with a $6.90 target.
• Coursera’s latest quarter beat expectations, with adjusted EPS of $0.21 versus $0.18 expected and revenue of $376.7 million versus $368.5 million expected; revenue rose 94% year over year.
• Despite the strong quarter and plans for more than $150 million in gross cost savings, the company guided for lower fourth-quarter revenue of $358 million to $366 million and continues to report negative profitability metrics.

Coursera (NYSE:COUR - Get Free Report) was downgraded by research analysts at JPMorgan Chase & Co. from an "overweight" rating to a "neutral" rating in a report issued on Friday, Marketbeat.com reports. They presently have a $5.00 price objective on the stock. JPMorgan Chase & Co.'s target price suggests a potential upside of 7.74% from the stock's previous close.

Several other equities research analysts have also issued reports on the stock. The Goldman Sachs Group upgraded shares of Coursera from a "sell" rating to a "neutral" rating and raised their price target for the stock from $5.50 to $6.50 in a research note on Monday, August 3rd. BMO Capital Markets reduced their price objective on Coursera from $8.00 to $6.00 and set an "outperform" rating for the company in a report on Monday, October 5th. Needham & Company LLC lowered their target price on Coursera from $10.00 to $6.00 and set a "buy" rating on the stock in a research note on Friday. Wall Street Zen upgraded Coursera from a "hold" rating to a "buy" rating in a research note on Saturday, September 19th. Finally, Zacks Research downgraded Coursera from a "strong-buy" rating to a "hold" rating in a research note on Monday, August 24th. Five equities research 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. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $6.90.

Coursera Stock Performance

Shares of NYSE:COUR opened at $4.64 on Friday. The company has a market capitalization of $1.23 billion, a P/E ratio of -6.93, a price-to-earnings-growth ratio of 0.49 and a beta of 1.24. The company's 50-day moving average is $5.32 and its 200 day moving average is $5.71. Coursera has a fifty-two week low of $4.53 and a fifty-two week high of $8.89.

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

Insider Buying and Selling at Coursera

In related news, major shareholder Pale Fire Capital Se purchased 1,000,000 shares of the business's stock in a transaction dated Tuesday, September 29th. The stock was purchased at an average cost of $4.61 per share, with a total value of $4,610,000.00. Following the completion of the acquisition, the insider directly owned 28,806,415 shares of the company's stock, valued at approximately $132,797,573.15. The trade was a 3.60% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. Also, SVP Alan B. Cardenas sold 9,139 shares of Coursera stock in a transaction on Monday, August 17th. The shares were sold at an average price of $5.71, for a total value of $52,183.69. Following the completion of the transaction, the senior vice president owned 236,237 shares of the company's stock, valued at approximately $1,348,913.27. This trade represents a 3.72% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 16.30% of the company's stock.

Institutional Trading of Coursera

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Optiver Holding B.V. purchased a new stake in shares of Coursera in the first quarter worth $31,000. Versant Capital Management Inc increased its stake in 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 acquiring an additional 2,152 shares during the last quarter. IFP Advisors Inc increased its stake in Coursera by 299.7% in the 2nd quarter. IFP Advisors Inc now owns 5,912 shares of the company's stock worth $33,000 after acquiring an additional 4,433 shares during the last quarter. Allworth Financial LP purchased a new stake in shares of Coursera in the 2nd quarter valued at about $40,000. Finally, Farther Finance Advisors LLC raised its holdings in shares of Coursera by 54.2% in the 3rd quarter. Farther Finance Advisors LLC now owns 7,602 shares of the company's stock valued at $38,000 after acquiring an additional 2,672 shares in the last quarter. Institutional investors own 89.55% of the company's stock.

Key Headlines 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 estimates ranging from $0.18 to $0.19 and more than double the $0.10 reported a year earlier. Revenue of $376.7 million also exceeded the roughly $368.5 million consensus estimate. Coursera Q3 earnings and revenue beat estimates
• Positive Sentiment: Management expects the integration program to deliver more than $150 million in gross cost savings by year-end. Investors are also encouraged by reported margin expansion and synergy momentum, which could improve profitability over time. Coursera Q3 earnings call highlights
• Neutral Sentiment: Third-quarter revenue increased sharply year over year, while the company continued to report a negative net margin and negative return on equity. This indicates strong top-line growth but ongoing profitability challenges. Coursera third-quarter financial results
• Negative Sentiment: Coursera guided for fourth-quarter revenue of $358 million to $366 million, below its third-quarter result of $376.7 million. The sequential revenue decline raised concerns about near-term growth and overshadowed the earnings and revenue beats, contributing to the stock’s decline. Coursera Q4 revenue outlook and cost savings

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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