Udemy (NASDAQ:UDMY) Receives Buy Rating from Needham & Company LLC

Key Points

• Needham & Company LLC has reiterated a "Buy" rating for Udemy (NASDAQ: UDMY) with a price target of $11.00, indicating a potential upside of 43.08% from the stock's previous close.
• Over the past months, various analysts have adjusted their ratings and target prices for Udemy, with five analysts giving a hold rating and seven a buy rating, suggesting a consensus rating of "Moderate Buy".
• Udemy's latest quarterly earnings report showed an earnings per share of $0.16, exceeding estimates, with a 2.8% year-over-year revenue increase totaling $199.88 million.

Udemy (NASDAQ:UDMY - Get Free Report)'s stock had its "buy" rating restated by investment analysts at Needham & Company LLC in a report released on Thursday,Benzinga reports. They currently have a $11.00 price target on the stock. Needham & Company LLC's price objective would suggest a potential upside of 51.31% from the stock's current price.

Other equities research analysts have also recently issued research reports about the company. Canaccord Genuity Group cut their target price on Udemy from $14.00 to $12.00 and set a "buy" rating for the company in a research note on Thursday, May 1st. Morgan Stanley raised Udemy from an "underweight" rating to an "equal weight" rating and raised their target price for the stock from $7.00 to $9.00 in a research note on Thursday, June 5th. Robert W. Baird cut their target price on Udemy from $13.00 to $11.00 and set an "outperform" rating for the company in a research note on Thursday, May 1st. JPMorgan Chase & Co. dropped their price objective on Udemy from $11.00 to $8.00 and set a "neutral" rating for the company in a research note on Thursday, April 24th. Finally, Truist Financial reaffirmed a "hold" rating and issued a $7.00 price objective (down from $10.00) on shares of Udemy in a research note on Monday, April 7th. Four investment analysts have rated the stock with a hold rating, six have issued a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $10.00.

Udemy Price Performance

Shares of NASDAQ:UDMY traded down $0.34 during midday trading on Thursday, hitting $7.27. The company had a trading volume of 2,627,443 shares, compared to its average volume of 1,426,395. Udemy has a twelve month low of $5.68 and a twelve month high of $10.61. The stock has a market cap of $1.08 billion, a price-to-earnings ratio of -34.62 and a beta of 1.78. The business's 50-day simple moving average is $7.12 and its 200-day simple moving average is $7.52.

Udemy (NASDAQ:UDMY - Get Free Report) last posted its earnings results on Wednesday, July 30th. The company reported $0.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.12 by $0.04. The company had revenue of $199.88 million during the quarter, compared to analysts' expectations of $196.74 million. Udemy had a negative return on equity of 5.40% and a negative net margin of 3.85%. The firm's quarterly revenue was up 2.8% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.04) earnings per share. As a group, sell-side analysts forecast that Udemy will post -0.09 EPS for the current year.

Insider Transactions at Udemy

In other Udemy news, CFO Sarah Blanchard sold 25,000 shares of Udemy stock in a transaction dated Friday, June 13th. The stock was sold at an average price of $6.99, for a total transaction of $174,750.00. Following the completion of the sale, the chief financial officer directly owned 1,077,097 shares of the company's stock, valued at $7,528,908.03. The trade was a 2.27% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Hugo Sarrazin purchased 22,695 shares of the firm's stock in a transaction on Wednesday, May 21st. The shares were acquired at an average cost of $6.91 per share, with a total value of $156,822.45. Following the completion of the acquisition, the chief executive officer directly owned 47,580 shares in the company, valued at $328,777.80. The trade was a 91.20% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have acquired a total of 47,580 shares of company stock valued at $330,894 over the last ninety days. 2.10% of the stock is owned by company insiders.

Institutional Trading of Udemy

A number of institutional investors have recently bought and sold shares of UDMY. Quarry LP purchased a new stake in shares of Udemy in the 4th quarter valued at about $34,000. Vega Investment Solutions purchased a new stake in shares of Udemy in the 4th quarter valued at about $46,000. GAMMA Investing LLC lifted its holdings in shares of Udemy by 558.3% in the 1st quarter. GAMMA Investing LLC now owns 6,945 shares of the company's stock valued at $54,000 after purchasing an additional 5,890 shares during the last quarter. State of Wyoming purchased a new stake in shares of Udemy in the 4th quarter valued at about $59,000. Finally, New York State Teachers Retirement System purchased a new stake in shares of Udemy in the 2nd quarter valued at about $58,000. 79.48% of the stock is owned by hedge funds and other institutional investors.

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.