Invenomic Capital Management LP Trims Stake in Udemy, Inc. $UDMY

Key Points

• Invenomic Capital Management LP significantly reduced its holdings in Udemy, Inc. by 66.4%, now owning approximately 0.49% of the company after selling over 1.4 million shares in the first quarter.
• Several institutional investors, including AQR Capital Management and PDT Partners, increased their stakes in Udemy, indicating a mixed sentiment among hedge funds regarding the company's prospects.
• Analysts have varied opinions on Udemy, with Zacks Research downgrading the stock to "hold," while other firms like Needham & Company maintain a "buy" rating with a target price of $11.00.

Invenomic Capital Management LP reduced its position in shares of Udemy, Inc. (NASDAQ:UDMY - Free Report) by 66.4% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 729,228 shares of the company's stock after selling 1,443,106 shares during the period. Invenomic Capital Management LP owned 0.49% of Udemy worth $5,659,000 as of its most recent SEC filing.

Other institutional investors also recently modified their holdings of the company. Deutsche Bank AG boosted its holdings in shares of Udemy by 100.8% during the fourth quarter. Deutsche Bank AG now owns 112,775 shares of the company's stock worth $928,000 after purchasing an additional 56,619 shares during the period. BNP Paribas Financial Markets purchased a new stake in Udemy in the fourth quarter worth about $716,000. Teacher Retirement System of Texas purchased a new stake in Udemy in the first quarter worth about $97,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in Udemy by 17.9% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 181,864 shares of the company's stock worth $1,497,000 after buying an additional 27,673 shares during the period. Finally, GAMMA Investing LLC lifted its holdings in Udemy by 558.3% in the first quarter. GAMMA Investing LLC now owns 6,945 shares of the company's stock worth $54,000 after buying an additional 5,890 shares during the period. 79.48% of the stock is currently owned by hedge funds and other institutional investors.

Udemy Trading Up 7.0%

NASDAQ:UDMY traded up $0.47 during trading hours on Thursday, reaching $7.14. The company had a trading volume of 946,099 shares, compared to its average volume of 1,293,635. Udemy, Inc. has a 52 week low of $5.68 and a 52 week high of $10.61. The firm has a market cap of $1.07 billion, a price-to-earnings ratio of -34.02 and a beta of 1.77. The firm's 50 day moving average price is $6.97 and its 200-day moving average price is $7.27.

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

Insiders Place Their Bets

In related news, CFO Sarah Blanchard sold 25,000 shares of the stock in a transaction dated Friday, June 13th. The shares were sold at an average price of $6.99, for a total value of $174,750.00. Following the sale, the chief financial officer directly owned 1,077,097 shares of the company's stock, valued at $7,528,908.03. This represents a 2.27% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 2.10% of the stock is owned by company insiders.

Analyst Ratings Changes

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

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.