The Goldman Sachs Group Has Lowered Expectations for Coursera (NYSE:COUR) Stock Price

Key Points

• Goldman Sachs cut Coursera’s price target from $6.50 to $5.00 while maintaining a “neutral” rating. JPMorgan also downgraded the stock to “neutral” and lowered its target to $5.00.
• Coursera shares fell 25.4% to $3.48, near their 12-month low, amid concerns about its outlook despite the company beating quarterly earnings and revenue estimates.
• Analyst sentiment remains mixed, with five Buy, six Hold, and one Sell rating; MarketBeat reports a consensus “Hold” rating and an average price target of $6.55.

Coursera (NYSE:COUR - Get Free Report) had its price target dropped by equities research analysts at The Goldman Sachs Group from $6.50 to $5.00 in a report released on Friday, Benzinga reports. The brokerage currently has a "neutral" rating on the stock. The Goldman Sachs Group's target price would indicate a potential upside of 43.88% from the stock's previous close.

Several other equities analysts also recently commented on the stock. 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. Wall Street Zen upgraded Coursera from a "hold" rating to a "buy" rating in a research report on Saturday, September 19th. Telsey Advisory Group set a $7.00 price target on Coursera in a report on Friday. KeyCorp lowered Coursera from an "overweight" rating to a "sector weight" rating in a research note on Friday. Finally, Needham & Company LLC cut their price objective on Coursera from $10.00 to $6.00 and set a "buy" rating on the stock in a research report on Friday. Five analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $6.55.

Coursera Trading Down 25.4%

Shares of NYSE:COUR traded down $1.19 during trading on Friday, reaching $3.48. The company's stock had a trading volume of 15,345,946 shares, compared to its average volume of 6,042,157. The stock has a market capitalization of $918.79 million, a PE ratio of -5.21, a price-to-earnings-growth ratio of 0.49 and a beta of 1.24. Coursera has a 12 month low of $3.50 and a 12 month high of $8.89. The firm's 50 day simple moving average is $5.32 and its two-hundred day simple moving average is $5.71.

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, beating the consensus estimate of $0.18 by $0.03. Coursera had a negative return on equity of 1.72% and a negative net margin of 15.39%. The business had revenue of $376.70 million during the quarter, compared to analyst estimates of $368.52 million. During the same period last year, the company earned $0.10 EPS. The company's revenue for the quarter was up 94.0% on a year-over-year basis. Research analysts anticipate that Coursera will post 0.20 EPS for the current fiscal year.

Insider Buying and Selling at Coursera

In other Coursera news, SVP Alan B. Cardenas sold 9,139 shares of the company's 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 in the company, valued at $1,348,913.27. This represents a 3.72% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Gregory M. Hart sold 10,308 shares of the business's stock in a transaction that occurred on Thursday, October 1st. The shares were sold at an average price of $5.11, for a total value of $52,673.88. Following the completion of the sale, the chief executive officer owned 1,539,003 shares of the company's stock, valued at approximately $7,864,305.33. This represents a 0.67% decrease in their position. The SEC filing for this sale provides additional information. 16.30% of the stock is currently owned by corporate insiders.

Institutional Trading of Coursera

A number of institutional investors have recently bought and sold shares of the company. Pinnacle Wealth Planning Services Inc. lifted its holdings in Coursera by 440.6% during the 3rd quarter. Pinnacle Wealth Planning Services Inc. now owns 28,220 shares of the company's stock worth $140,000 after buying an additional 23,000 shares during the last quarter. Total Clarity Wealth Management Inc. bought a new stake in shares of Coursera during the 3rd quarter worth about $178,000. Inspire Investing LLC boosted its stake in Coursera by 5.1% during the third 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. increased its stake in Coursera by 28.4% in the 3rd quarter. SBI Securities Co. Ltd. now owns 15,532 shares of the company's stock worth $77,000 after purchasing an additional 3,435 shares in the last quarter. Finally, Counterpoint Mutual Funds LLC purchased a new stake in Coursera in the 3rd quarter worth about $551,000. 89.55% of the stock is currently owned by hedge funds and other institutional investors.

Coursera News Roundup

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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