Royce & Associates LP Sells 339,670 Shares of Udemy, Inc. (NASDAQ:UDMY)

Key Points

• Royce & Associates LP reduced its stake in Udemy, Inc. by 30.3%, selling 339,670 shares and now owns approximately 0.52% of the company valued at $6.05 million.
• Despite the stake reduction from Royce & Associates, several institutional investors are increasing their holdings in Udemy, resulting in a total of 79.48% of the company's stock owned by institutional investors.
• Analysts have mixed views on Udemy's stock; with a current average rating of "Moderate Buy" and a target price around $9.75, yet some have downgraded their price targets amid earnings reports.

Royce & Associates LP cut its holdings in Udemy, Inc. (NASDAQ:UDMY - Free Report) by 30.3% during the first quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 779,689 shares of the company's stock after selling 339,670 shares during the quarter. Royce & Associates LP owned about 0.52% of Udemy worth $6,050,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the business. Assenagon Asset Management S.A. boosted its stake 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 acquiring an additional 2,538,728 shares during the last quarter. Federated Hermes Inc. boosted its stake in Udemy by 1,985.5% in the fourth quarter. Federated Hermes Inc. now owns 1,372,593 shares of the company's stock valued at $11,296,000 after acquiring an additional 1,306,778 shares during the last quarter. Northern Trust Corp boosted its stake in Udemy by 6.1% in the fourth quarter. Northern Trust Corp now owns 836,920 shares of the company's stock valued at $6,888,000 after acquiring an additional 48,298 shares during the last quarter. Millennium Management LLC bought a new position in Udemy in the fourth quarter valued at approximately $5,911,000. Finally, Jacobs Levy Equity Management Inc. boosted its stake in Udemy by 97.3% in the fourth quarter. Jacobs Levy Equity Management Inc. now owns 628,510 shares of the company's stock valued at $5,173,000 after acquiring an additional 310,003 shares during the last quarter. 79.48% of the stock is owned by institutional investors.

Insiders Place Their Bets

In other news, CEO Hugo Sarrazin acquired 22,695 shares of the firm's stock in a transaction dated Wednesday, May 21st. The stock was bought at an average price of $6.91 per share, with a total value of $156,822.45. Following the transaction, the chief executive officer directly owned 47,580 shares in the company, valued at approximately $328,777.80. The trade was a 91.20% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CFO Sarah Blanchard sold 25,000 shares of Udemy stock in a transaction dated Friday, June 13th. The shares were sold at an average price of $6.99, for a total transaction of $174,750.00. Following the completion of the transaction, the chief financial officer directly owned 1,077,097 shares of the company's stock, valued at approximately $7,528,908.03. This trade represents a 2.27% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders purchased 47,580 shares of company stock valued at $330,894. 3.20% of the stock is owned by insiders.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on UDMY. Robert W. Baird reduced their price objective on shares of Udemy from $13.00 to $11.00 and set an "outperform" rating on the stock in a research note on Thursday, May 1st. Needham & Company LLC reiterated a "buy" rating and issued a $11.00 target price on shares of Udemy in a report on Thursday, May 1st. JPMorgan Chase & Co. cut their target price on shares of Udemy from $11.00 to $8.00 and set a "neutral" rating on the stock in a report on Thursday, April 24th. Truist Financial reiterated a "hold" rating and issued a $7.00 target price (down from $10.00) on shares of Udemy in a report on Monday, April 7th. Finally, Cantor Fitzgerald cut their target price on shares of Udemy from $11.00 to $9.00 and set an "overweight" rating on the stock in a report on Thursday, May 1st. Five analysts have rated the stock with a hold rating and seven have issued a buy rating to the company. Based on data from MarketBeat, Udemy presently has an average rating of "Moderate Buy" and an average target price of $9.75.

Udemy Stock Performance

Udemy stock traded down $0.02 during mid-day trading on Wednesday, reaching $7.12. The company's stock had a trading volume of 249,530 shares, compared to its average volume of 1,190,624. The company has a market capitalization of $1.06 billion, a price-to-earnings ratio of -15.49 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 business's 50 day simple moving average is $7.09 and its 200 day simple moving average is $7.54.

Udemy (NASDAQ:UDMY - Get Free Report) last released its earnings results on Wednesday, April 30th. The company reported $0.12 earnings per share for the quarter, beating analysts' consensus estimates of $0.10 by $0.02. The business had revenue of $200.30 million during the quarter, compared to the consensus estimate of $197.19 million. Udemy had a negative net margin of 8.70% and a negative return on equity of 22.68%. The firm's revenue for the quarter was up 1.8% compared to the same quarter last year. During the same quarter last year, the firm earned $0.03 earnings per share. As a group, sell-side analysts expect that Udemy, Inc. will post -0.09 EPS for the current year.

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.