Goldman Sachs Group Inc. Acquires 205,104 Shares of Udemy, Inc. $UDMY

Key Points

• Goldman Sachs Group Inc. increased its stake in Udemy, Inc. by 45.2% in the first quarter, owning 658,603 shares valued at approximately $5.11 million.
• A significant share buyback program of $50 million has been approved by Udemy's board, indicating a belief that the company’s shares are undervalued.
• Udemy reported a quarterly revenue of $199.88 million, exceeding analyst expectations and reflecting a 2.8% year-over-year growth.

Goldman Sachs Group Inc. increased its holdings in shares of Udemy, Inc. (NASDAQ:UDMY - Free Report) by 45.2% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 658,603 shares of the company's stock after acquiring an additional 205,104 shares during the quarter. Goldman Sachs Group Inc. owned about 0.44% of Udemy worth $5,111,000 as of its most recent SEC filing.

A number of other institutional investors have also made changes to their positions in the business. Vanguard Group Inc. grew its holdings in Udemy by 12.2% in the 1st quarter. Vanguard Group Inc. now owns 10,663,298 shares of the company's stock valued at $82,747,000 after buying an additional 1,156,006 shares in the last quarter. Assenagon Asset Management S.A. raised its position in Udemy by 1,814.5% in the first quarter. Assenagon Asset Management S.A. now owns 2,678,641 shares of the company's stock valued at $20,786,000 after purchasing an additional 2,538,728 shares during the last quarter. Federated Hermes Inc. increased its stake in shares of Udemy by 0.6% in the first quarter. Federated Hermes Inc. now owns 1,380,278 shares of the company's stock valued at $10,711,000 after buying an additional 7,685 shares during the period. Northern Trust Corp grew its stake in Udemy by 6.1% during the fourth quarter. Northern Trust Corp now owns 836,920 shares of the company's stock worth $6,888,000 after purchasing an additional 48,298 shares during the period. Finally, Millennium Management LLC grew its stake in Udemy by 5.0% in the first quarter. Millennium Management LLC now owns 753,782 shares of the company's stock valued at $5,849,000 after acquiring an additional 35,577 shares during the period. 79.48% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at Udemy

In other 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 in the company, 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 document filed with the SEC, which is available at the SEC website. 2.10% of the stock is currently owned by insiders.

Analysts Set New Price Targets

A number of brokerages recently commented on UDMY. Cantor Fitzgerald lifted their price target on Udemy from $9.00 to $10.00 and gave the stock an "overweight" rating in a report on Thursday, July 31st. Zacks Research lowered Udemy from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, September 2nd. Wall Street Zen raised Udemy from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 2nd. Needham & Company LLC reissued a "buy" rating and issued a $11.00 target price on shares of Udemy in a research note on Thursday, July 31st. Finally, Morgan Stanley raised Udemy from an "underweight" rating to an "equal weight" rating and upped their price target for the company from $7.00 to $9.00 in a research report on Thursday, June 5th. Five analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat, Udemy presently has a consensus rating of "Moderate Buy" and a consensus target price of $9.75.

Udemy Trading Down 2.6%

UDMY stock traded down $0.19 during midday trading on Friday, hitting $7.25. The company's stock had a trading volume of 2,101,971 shares, compared to its average volume of 1,649,710. The company has a market cap of $1.09 billion, a PE ratio of -34.52 and a beta of 1.77. Udemy, Inc. has a 12 month low of $5.68 and a 12 month high of $10.61. The firm's 50-day moving average is $7.02 and its 200-day moving average is $7.15.

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

Udemy declared that its Board of Directors has initiated a stock buyback plan on Wednesday, September 10th that allows the company to buyback $50.00 million in shares. This buyback authorization allows the company to reacquire up to 5% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's board of directors believes its shares are 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.