Coursera (NYSE:COUR) Stock Gets Price Target Reduction from Scotiabank

Key Points

• Scotiabank cut Coursera’s price target from $7.00 to $4.50 while maintaining a “sector perform” rating; other analysts also lowered targets, bringing the consensus rating to “Hold” with a $6.36 average target.
• Coursera shares fell 25.1% to $3.49 amid heavy trading, near the stock’s 52-week low. The decline followed cautious fourth-quarter revenue guidance of $358 million to $366 million despite the company exceeding third-quarter revenue and earnings expectations.
• The company reported third-quarter revenue of $376.7 million, up 94% year over year, and EPS of $0.21 versus the $0.18 consensus estimate. Management also expects more than $150 million in gross cost savings by year-end.

Coursera (NYSE:COUR - Get Free Report) had its price objective lowered by research analysts at Scotiabank from $7.00 to $4.50 in a report released on Friday, Benzinga reports. The firm presently has a "sector perform" rating on the stock. Scotiabank's price target indicates a potential upside of 28.94% from the company's previous close.

COUR has been the topic of several other reports. Telsey Advisory Group decreased their price target on Coursera from $10.00 to $7.00 and set an "outperform" rating on the stock in a research report on Friday. Royal Bank Of Canada decreased their target price on shares of Coursera from $7.00 to $5.00 and set an "outperform" rating on the stock in a report on Friday. JPMorgan Chase & Co. downgraded shares of Coursera from an "overweight" rating to a "neutral" rating and cut their price target for the company from $8.00 to $5.00 in a report on Friday. Needham & Company LLC reduced their price target on shares of Coursera from $10.00 to $6.00 and set a "buy" rating for the company in a research report on Friday. Finally, Zacks Research cut shares of Coursera from a "strong-buy" rating to a "hold" rating in a report on Monday, August 24th. Five investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $6.36.

Coursera Stock Down 25.1%

COUR stock traded down $1.17 during midday trading on Friday, hitting $3.49. The company's stock had a trading volume of 28,158,452 shares, compared to its average volume of 6,085,305. The stock has a market cap of $922.76 million, a price-to-earnings ratio of -5.21, a PEG ratio of 0.49 and a beta of 1.24. Coursera has a 1 year low of $3.45 and a 1 year high of $8.89. The stock's 50-day moving average price is $5.32 and its 200 day moving average price is $5.71.

Coursera (NYSE:COUR - Get Free Report) last issued its quarterly earnings results on Thursday, October 29th. The company reported $0.21 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.18 by $0.03. Coursera had a negative net margin of 15.39% and a negative return on equity of 1.72%. The company had revenue of $376.70 million during the quarter, compared to analyst estimates of $368.52 million. During the same quarter last year, the business posted $0.10 EPS. Coursera's quarterly revenue was up 94.0% compared to the same quarter last year. As a group, equities analysts forecast 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 purchased 1,000,000 shares of the stock in a transaction on Tuesday, September 29th. The stock was acquired 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 approximately $132,797,573.15. This trade represents a 3.60% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, SVP Alan B. Cardenas sold 9,139 shares of the firm'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 transaction, the senior vice president directly owned 236,237 shares in the company, valued at $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. 16.30% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Optiver Holding B.V. bought a new position in Coursera in the 1st quarter worth about $31,000. Versant Capital Management Inc lifted its stake in shares of Coursera by 63.2% in the second quarter. Versant Capital Management Inc now owns 5,555 shares of the company's stock worth $31,000 after buying an additional 2,152 shares in the last quarter. IFP Advisors Inc grew its holdings in shares of Coursera by 299.7% during the second quarter. IFP Advisors Inc now owns 5,912 shares of the company's stock valued at $33,000 after buying an additional 4,433 shares during the last quarter. Farther Finance Advisors LLC increased its position in shares of Coursera by 54.2% during the third 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. Finally, Allworth Financial LP bought a new position in Coursera in the 2nd quarter valued at approximately $40,000. 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 revenue of approximately $377 million, exceeding Wall Street expectations of $368.5 million, while adjusted earnings of $0.21 per share surpassed the consensus estimate of $0.18. Revenue increased 94% year over year. Coursera quarterly earnings results
• Positive Sentiment: Management expects to achieve more than $150 million in gross cost savings by year-end, supporting the company’s integration and margin-expansion efforts. Coursera cost savings and guidance
• Positive Sentiment: Unusual options activity provided a potentially bullish signal, with traders purchasing 5,405 call options—about 247% above average call volume.
• Neutral Sentiment: Royal Bank of Canada maintained an “outperform” rating but reduced its price target from $7 to $5. Goldman Sachs also cut its target from $6.50 to $5 and retained a “neutral” rating. Both revised targets still imply substantial upside from recent trading levels. Royal Bank of Canada analyst action
• Negative Sentiment: Coursera forecast fourth-quarter revenue of $358 million to $366 million, a cautious outlook that appears to have outweighed the latest earnings beat and contributed to investor selling. Coursera weak guidance report
• Negative Sentiment: JPMorgan downgraded Coursera from “overweight” to “neutral” and lowered its price target from $8 to $5, reinforcing concerns about near-term growth and execution. JPMorgan analyst action

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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