Udemy, Inc. (NASDAQ:UDMY) Sees Significant Growth in Short Interest

Key Points

• Udemy, Inc. saw a massive increase in short interest of 28,550.8% in July, with a total of 3,610,000 shares shorted as of July 15th.
• Several analysts have downgraded Udemy's stock, with JPMorgan and Canaccord Genuity lowering their price targets to $8.00 and $12.00, respectively, while Wall Street Zen reduced their rating to a "buy."
• Insider transactions indicated mixed signals, as CFO Sarah Blanchard sold 25,000 shares while CEO Hugo Sarrazin increased his holdings by purchasing 22,695 shares.

Udemy, Inc. (NASDAQ:UDMY - Get Free Report) was the target of a significant increase in short interest during the month of July. As of July 15th, there was short interest totaling 3,610,000 shares, anincreaseof28,550.8% from the June 30th total of 12,600 shares. Based on an average daily volume of 1,090,000 shares, the days-to-cover ratio is presently 3.3 days. Approximately4.4% of the company's shares are short sold. Approximately4.4% of the company's shares are short sold. Based on an average daily volume of 1,090,000 shares, the days-to-cover ratio is presently 3.3 days.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on UDMY. Canaccord Genuity Group dropped their price target on Udemy from $14.00 to $12.00 and set a "buy" 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 research report on Thursday, July 31st. Wall Street Zen upgraded Udemy from a "buy" rating to a "strong-buy" rating in a research report on Saturday. Morgan Stanley upgraded Udemy from an "underweight" rating to an "equal weight" rating and upped their target price for the company from $7.00 to $9.00 in a research report on Thursday, June 5th. Finally, Robert W. Baird dropped their target price on Udemy from $13.00 to $11.00 and set an "outperform" rating on the stock in a research report on Thursday, May 1st. Four investment analysts have rated the stock with a hold rating, six have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $10.00.

Udemy Price Performance

NASDAQ:UDMY traded down $0.06 during trading hours on Tuesday, reaching $7.38. The company had a trading volume of 840,402 shares, compared to its average volume of 1,226,080. The firm has a market cap of $1.11 billion, a PE ratio of -35.12 and a beta of 1.78. Udemy has a 1-year low of $5.68 and a 1-year high of $10.61. The business's 50 day moving average price is $7.13 and its 200-day moving average price is $7.50.

Udemy (NASDAQ:UDMY - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The company reported $0.16 earnings per share 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 business had revenue of $199.88 million for the quarter, compared to analysts' expectations of $196.74 million. During the same period in the prior year, the firm earned ($0.04) EPS. The business's quarterly revenue was up 2.8% on a year-over-year basis. On average, analysts expect that Udemy will post -0.09 earnings per share for the current fiscal year.

Insider Buying and Selling at Udemy

In other news, CEO Hugo Sarrazin acquired 22,695 shares of the firm's stock in a transaction that occurred on Wednesday, May 21st. The stock was purchased at an average cost of $6.91 per share, for a total transaction of $156,822.45. Following the completion of the acquisition, the chief executive officer directly owned 47,580 shares of the company's stock, valued at $328,777.80. The trade was a 91.20% increase in their position. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Sarah Blanchard sold 25,000 shares of the business's 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 transaction, the chief financial officer owned 1,077,097 shares of the company's stock, valued at $7,528,908.03. This represents a 2.27% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have bought 47,580 shares of company stock valued at $330,894. Corporate insiders own 3.20% of the company's stock.

Institutional Trading of Udemy

Hedge funds and other institutional investors have recently modified their holdings of the company. Teacher Retirement System of Texas boosted its holdings in Udemy by 109.3% during 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 in the last quarter. Y Intercept Hong Kong Ltd increased its holdings in Udemy by 203.7% during the 2nd quarter. Y Intercept Hong Kong Ltd now owns 344,388 shares of the company's stock worth $2,421,000 after purchasing an additional 230,994 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in Udemy during the 2nd quarter worth about $126,000. New York State Teachers Retirement System bought a new position in Udemy during the 2nd quarter worth about $58,000. Finally, CWM LLC boosted its stake in shares of Udemy by 138.8% during the 2nd quarter. CWM LLC now owns 31,932 shares of the company's stock worth $224,000 after buying an additional 18,561 shares during the last quarter. 79.48% of the stock is currently 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.