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

Key Points

• Udemy, Inc. has received a **consensus rating of "Moderate Buy"** from analysts, with five hold and five buy ratings, and an average price target of **$9.75**.
• The company reported earnings of **$0.16 EPS**, surpassing analyst expectations, and had **revenue of $199.88 million**, marking a **2.8% year-over-year increase**.
• Udemy's board has authorized a **$50 million stock buyback plan**, indicating management believes the stock is currently **undervalued**.

Udemy, Inc. (NASDAQ:UDMY - Get Free Report) has received an average recommendation of "Moderate Buy" from the ten analysts that are covering the stock, Marketbeat Ratings reports. Five analysts have rated the stock with a hold rating and five have given a buy rating to the company. The average twelve-month price target among analysts that have issued a report on the stock in the last year is $9.75.

Several equities analysts have recently issued reports on the stock. Wall Street Zen upgraded shares of Udemy from a "buy" rating to a "strong-buy" rating in a report on Saturday, August 2nd. Needham & Company LLC restated a "buy" rating and set a $11.00 price objective on shares of Udemy in a report on Thursday, July 31st. Zacks Research downgraded shares of Udemy from a "strong-buy" rating to a "hold" rating in a report on Tuesday, September 2nd. Cantor Fitzgerald upped their price objective on shares of Udemy from $9.00 to $10.00 and gave the company an "overweight" rating in a report on Thursday, July 31st. Finally, Morgan Stanley upgraded shares of Udemy from an "underweight" rating to an "equal weight" rating and upped their price objective for the company from $7.00 to $9.00 in a report on Thursday, June 5th.

Udemy Stock Performance

Shares of Udemy stock opened at $7.30 on Tuesday. The company has a market capitalization of $1.10 billion, a PE ratio of -34.76 and a beta of 1.77. The company has a 50-day simple moving average of $7.03 and a two-hundred day simple moving average of $7.10. Udemy has a one year low of $5.68 and a one year high of $10.61.

Udemy (NASDAQ:UDMY - Get Free Report) last announced its earnings results on Wednesday, July 30th. The company reported $0.16 EPS for the quarter, topping analysts' consensus estimates of $0.12 by $0.04. The business had revenue of $199.88 million during 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%. The firm's revenue was up 2.8% on a year-over-year basis. During the same period in the previous year, the company posted ($0.04) earnings per share. Udemy has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. On average, equities analysts predict that Udemy will post -0.09 earnings per share for the current fiscal year.

Udemy declared that its board has initiated a stock buyback plan on Wednesday, September 10th that authorizes the company to buyback $50.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 5% of its stock through open market purchases. Stock buyback plans are usually an indication that the company's leadership believes its stock is undervalued.

Insider Activity

In related news, CFO Sarah Blanchard sold 25,000 shares of the company's stock in a transaction that occurred on Monday, September 15th. The stock was 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 in the company, valued at $9,118,707.24. This represents a 1.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 3.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Udemy

A number of large investors have recently bought and sold shares of the company. Osaic Holdings Inc. purchased a new stake in Udemy in the second quarter valued at approximately $56,000. State of Wyoming boosted its position in Udemy by 30.3% in the second quarter. State of Wyoming now owns 38,194 shares of the company's stock valued at $269,000 after buying an additional 8,874 shares during the last quarter. Tower Research Capital LLC TRC boosted its position in Udemy by 339.4% in the second quarter. Tower Research Capital LLC TRC now owns 13,292 shares of the company's stock valued at $93,000 after buying an additional 10,267 shares during the last quarter. State of Tennessee Department of Treasury purchased a new stake in Udemy in the second quarter valued at approximately $171,000. Finally, Oxford Asset Management LLP purchased a new stake in Udemy in the second quarter valued at approximately $238,000. Hedge funds and other institutional investors 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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