Udemy, Inc. (NASDAQ:UDMY) Receives Consensus Rating of "Hold" from Analysts

Key Points

• Udemy, Inc. has received a consensus rating of "Hold" from analysts, with one sell rating, five hold ratings, and five buy ratings among the eleven firms covering the stock.
• The average 12-month price target for Udemy's stock is $9.75, while the company recently reported earnings per share of $0.16, exceeding analysts' expectations.
• Udemy's Board of Directors has approved a $50 million share buyback program, indicating that they believe the company's shares are undervalued.

Udemy, Inc. (NASDAQ:UDMY - Get Free Report) has been assigned a consensus rating of "Hold" from the eleven ratings firms that are covering the firm, MarketBeat.com reports. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and five have given a buy rating to the company. The average 12 month price target among brokerages that have issued a report on the stock in the last year is $9.75.

A number of research firms have weighed in on UDMY. Zacks Research cut shares of Udemy from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, September 2nd. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Udemy in a research report on Wednesday, October 8th. Wall Street Zen raised shares of Udemy from a "buy" rating to a "strong-buy" rating in a research report on Saturday, August 2nd. Cantor Fitzgerald raised their price target on shares of Udemy from $9.00 to $10.00 and gave the stock an "overweight" rating in a research report on Thursday, July 31st. Finally, Needham & Company LLC reaffirmed a "buy" rating and set a $11.00 price objective on shares of Udemy in a research note on Thursday, July 31st.

Udemy Stock Performance

UDMY stock opened at $6.60 on Friday. The company has a market capitalization of $992.27 million, a PE ratio of -31.43 and a beta of 1.76. The company's fifty day moving average price is $6.87 and its 200-day moving average price is $6.91. Udemy has a one year low of $5.68 and a one year high of $10.61.

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

Udemy announced that its Board of Directors has approved a share repurchase program on Wednesday, September 10th that permits the company to buyback $50.00 million in outstanding shares. This buyback authorization permits the company to reacquire up to 5% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's board of directors believes its shares are undervalued.

Insider Transactions at Udemy

In related news, CFO Sarah Blanchard sold 25,000 shares of Udemy stock in a transaction on Monday, September 15th. The shares were sold at an average price of $7.08, for a total value of $177,000.00. Following the sale, the chief financial officer owned 1,287,953 shares of the company's stock, valued at approximately $9,118,707.24. This trade represents a 1.90% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 2.10% of the company's stock.

Institutional Investors Weigh In On Udemy

A number of institutional investors have recently added to or reduced their stakes in UDMY. CWM LLC boosted its stake in Udemy by 36.9% during the 3rd quarter. CWM LLC now owns 43,710 shares of the company's stock worth $306,000 after purchasing an additional 11,778 shares during the last quarter. Inspire Investing LLC purchased a new position in shares of Udemy during the 3rd quarter worth $458,000. Harbor Capital Advisors Inc. raised its holdings in shares of Udemy by 20.6% during the 3rd quarter. Harbor Capital Advisors Inc. now owns 24,843 shares of the company's stock worth $174,000 after acquiring an additional 4,235 shares during the period. Voya Investment Management LLC raised its holdings in shares of Udemy by 4.2% during the 3rd quarter. Voya Investment Management LLC now owns 280,607 shares of the company's stock worth $1,967,000 after acquiring an additional 11,352 shares during the period. Finally, Assenagon Asset Management S.A. raised its holdings in shares of Udemy by 70.8% during the 3rd quarter. Assenagon Asset Management S.A. now owns 4,474,417 shares of the company's stock worth $31,366,000 after acquiring an additional 1,854,550 shares during the period. Institutional investors and hedge funds own 79.48% of the company's stock.

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.

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