Caxton Associates LLP Buys New Position in Udemy, Inc. $UDMY

Key Points

• Caxton Associates LLP has invested approximately $327,000 in Udemy, acquiring 42,095 shares, marking the firm’s new entry into the company's stock during the first quarter.
• Udemy's board has authorized a $50 million share buyback program, allowing the company to repurchase up to 5% of its outstanding shares, signaling confidence in the stock's undervaluation.
• Several analysts have revised their ratings on Udemy, with Morgan Stanley upgrading the stock to an "equal weight" and raising the target price to $9.00, while Zacks downgraded it from “strong-buy” to “hold” as of September 2nd.

Caxton Associates LLP purchased a new stake in shares of Udemy, Inc. (NASDAQ:UDMY - Free Report) during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor purchased 42,095 shares of the company's stock, valued at approximately $327,000.

Other institutional investors and hedge funds have also made changes to their positions in the company. HighTower Advisors LLC increased its position in Udemy by 7.8% in the first quarter. HighTower Advisors LLC now owns 22,551 shares of the company's stock worth $175,000 after buying an additional 1,641 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in Udemy by 4.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 54,071 shares of the company's stock worth $420,000 after buying an additional 2,399 shares during the period. New York State Common Retirement Fund increased its position in Udemy by 18.1% in the first quarter. New York State Common Retirement Fund now owns 27,138 shares of the company's stock worth $211,000 after buying an additional 4,159 shares during the period. Price T Rowe Associates Inc. MD increased its position in Udemy by 14.0% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 36,064 shares of the company's stock worth $297,000 after buying an additional 4,418 shares during the period. Finally, Vega Investment Solutions acquired a new stake in Udemy in the fourth quarter worth $46,000. 79.48% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In related news, CFO Sarah Blanchard sold 25,000 shares of the firm's stock in a transaction dated Monday, September 15th. The stock was sold at an average price of $7.08, for a total transaction of $177,000.00. Following the completion of the transaction, the chief financial officer owned 1,287,953 shares of the company's stock, valued at $9,118,707.24. This trade represents a 1.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 2.10% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

UDMY has been the topic of several analyst reports. Wall Street Zen raised Udemy from a "buy" rating to a "strong-buy" rating in a research report on Saturday, August 2nd. Cantor Fitzgerald increased their target price on Udemy from $9.00 to $10.00 and gave the stock an "overweight" rating in a research report on Thursday, July 31st. Morgan Stanley raised Udemy from an "underweight" rating to an "equal weight" rating and increased their target price for the stock from $7.00 to $9.00 in a research report on Thursday, June 5th. Needham & Company LLC reaffirmed a "buy" rating and issued a $11.00 target price on shares of Udemy in a research report on Thursday, July 31st. Finally, Zacks Research lowered Udemy from a "strong-buy" rating to a "hold" rating in a report on Tuesday, September 2nd. Five analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $9.75.

Udemy Price Performance

Shares of UDMY traded up $0.26 during trading hours on Thursday, reaching $7.44. 1,470,181 shares of the company's stock traded hands, compared to its average volume of 1,652,283. The firm has a market capitalization of $1.12 billion, a price-to-earnings ratio of -35.43 and a beta of 1.77. Udemy, Inc. has a twelve month low of $5.68 and a twelve month high of $10.61. The business's fifty day simple moving average is $7.01 and its two-hundred day simple moving average is $7.16.

Udemy (NASDAQ:UDMY - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The company reported $0.16 EPS for the quarter, beating analysts' consensus estimates of $0.12 by $0.04. The company had revenue of $199.88 million for the quarter, compared to analyst estimates of $196.74 million. Udemy had a negative return on equity of 5.19% and a negative net margin of 3.85%.The company's quarterly revenue was up 2.8% compared to the same quarter last year. During the same period last year, the company earned ($0.04) earnings per share. Udemy has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. On average, equities research analysts expect that Udemy, Inc. will post -0.09 EPS for the current year.

Udemy declared that its Board of Directors has authorized a stock buyback plan on Wednesday, September 10th that permits the company to buyback $50.00 million in shares. This buyback authorization permits the company to reacquire up to 5% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's leadership believes its stock is undervalued.

Udemy Company Profile

Udemy, Inc, a learning company, that operates a marketplace platform for learning skills in the United States and internationally. The company offers skill acquisition, development, and validation courses for organizations and individuals, through direct-to-consumer or Udemy Business offerings in various languages.