Udemy (NASDAQ:UDMY) Given Buy Rating at 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 reiterated by research analysts at Needham & Company LLC in a research note issued to investors on Thursday,Benzinga reports. They currently have a $11.00 target price on the stock. Needham & Company LLC's price objective indicates a potential upside of 48.05% from the company's current price.

A number of other analysts have also recently weighed in on UDMY. Canaccord Genuity Group reduced their target price on shares of Udemy from $14.00 to $12.00 and set a "buy" rating for the company in a report on Thursday, May 1st. Wall Street Zen cut shares of Udemy from a "strong-buy" rating to a "buy" rating in a research note on Saturday, July 12th. JPMorgan Chase & Co. decreased their price objective on shares of Udemy from $11.00 to $8.00 and set a "neutral" rating on the stock in a research note on Thursday, April 24th. Cantor Fitzgerald dropped their price objective on Udemy from $11.00 to $9.00 and set an "overweight" rating for the company in a report on Thursday, May 1st. Finally, Robert W. Baird cut their target price on shares of Udemy from $13.00 to $11.00 and set an "outperform" rating on the stock in a report on Thursday, May 1st. Four research analysts have rated the stock with a hold rating, six have given a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $10.00.

Udemy Price Performance

UDMY stock traded up $0.16 during midday trading on Thursday, hitting $7.43. The stock had a trading volume of 1,902,501 shares, compared to its average volume of 1,228,907. The company's 50-day moving average price is $7.12 and its 200 day moving average price is $7.51. The firm has a market cap of $1.12 billion, a PE ratio of -35.38 and a beta of 1.78. Udemy has a 12-month low of $5.68 and a 12-month high of $10.61.

Udemy (NASDAQ:UDMY - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The company reported $0.16 earnings per share (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 firm had revenue of $199.88 million for the quarter, compared to analyst estimates of $196.74 million. During the same period last year, the company earned ($0.04) EPS. The firm's quarterly revenue was up 2.8% on a year-over-year basis. As a group, sell-side analysts anticipate that Udemy will post -0.09 EPS for the current year.

Insiders Place Their Bets

In other news, CFO Sarah Blanchard sold 25,000 shares of the business's stock in a transaction on 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 sale, the chief financial officer directly owned 1,077,097 shares of the company's stock, valued at approximately $7,528,908.03. The trade was a 2.27% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Hugo Sarrazin acquired 22,695 shares of the stock in a transaction on Wednesday, May 21st. The stock was bought at an average cost of $6.91 per share, with a total value of $156,822.45. Following the completion of the transaction, the chief executive officer owned 47,580 shares in the company, valued at $328,777.80. This trade represents a 91.20% increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last quarter, insiders acquired 47,580 shares of company stock worth $330,894. 3.20% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Udemy

A number of large investors have recently made changes to their positions in UDMY. Teacher Retirement System of Texas boosted its holdings in Udemy by 109.3% in the second quarter. Teacher Retirement System of Texas now owns 26,268 shares of the company's stock valued at $185,000 after purchasing an additional 13,719 shares during the last quarter. Y Intercept Hong Kong Ltd grew its holdings in Udemy by 203.7% during the second quarter. Y Intercept Hong Kong Ltd now owns 344,388 shares of the company's stock worth $2,421,000 after acquiring an additional 230,994 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in Udemy during the second quarter valued at approximately $126,000. New York State Teachers Retirement System acquired a new position in Udemy in the second quarter valued at approximately $58,000. Finally, CWM LLC boosted its position in Udemy by 138.8% in the 2nd quarter. CWM LLC now owns 31,932 shares of the company's stock worth $224,000 after purchasing an additional 18,561 shares in the last quarter. 79.48% of the stock is owned by institutional investors and hedge funds.

About Udemy

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.