Udemy (NASDAQ:UDMY) Stock Rating Lowered by Zacks Research

Key Points

• Udemy has been downgraded by Zacks Research from a "strong-buy" rating to a "hold" rating, reflecting a more cautious outlook on the stock.
• Despite the downgrade, analysts have varied opinions: Morgan Stanley upgraded shares from "underweight" to "equal weight" and set a price objective of $9.00, while Cantor Fitzgerald raised their target to $10.00.
• Udemy reported earnings of $0.16 per share, exceeding expectations, and its revenue for the quarter increased by 2.8% year-over-year, totaling $199.88 million.

Udemy (NASDAQ:UDMY - Get Free Report) was downgraded by research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued on Tuesday,Zacks.com reports.

Several other research analysts have also recently weighed in on UDMY. Morgan Stanley upgraded Udemy from an "underweight" rating to an "equal weight" rating and boosted their price target for the stock from $7.00 to $9.00 in a research note on Thursday, June 5th. Cantor Fitzgerald increased their price target on Udemy from $9.00 to $10.00 and gave the company an "overweight" rating in a research note on Thursday, July 31st. Wall Street Zen upgraded Udemy from a "buy" rating to a "strong-buy" rating in a report on Saturday, August 2nd. Finally, 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. Five equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $9.75.

Udemy Price Performance

Udemy stock traded up $0.11 during trading hours on Tuesday, reaching $6.79. The company had a trading volume of 1,199,710 shares, compared to its average volume of 1,280,058. The company has a 50-day moving average price of $6.99 and a 200 day moving average price of $7.29. The firm has a market cap of $1.02 billion, a price-to-earnings ratio of -32.33 and a beta of 1.77. 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 data 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 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 business's quarterly revenue was up 2.8% compared to the same quarter last year. Udemy has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. As a group, research analysts expect that Udemy will post -0.09 earnings per share for the current year.

Insider Buying and Selling 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 transaction, the chief financial officer owned 1,077,097 shares in the company, valued at approximately $7,528,908.03. This trade represents a 2.27% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 2.10% of the company's stock.

Hedge Funds Weigh In On Udemy

Institutional investors and hedge funds have recently modified their holdings of the business. Raymond James Financial Inc. acquired a new stake in Udemy in the 4th quarter worth about $164,000. Stifel Financial Corp acquired a new position in Udemy during the fourth quarter worth $294,000. Price T Rowe Associates Inc. MD increased its position in shares of Udemy by 14.0% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 36,064 shares of the company's stock worth $297,000 after acquiring an additional 4,418 shares during the period. Northern Trust Corp increased its position in shares of Udemy by 6.1% during the fourth quarter. Northern Trust Corp now owns 836,920 shares of the company's stock worth $6,888,000 after acquiring an additional 48,298 shares during the period. Finally, Ameriprise Financial Inc. purchased a new position in Udemy in the fourth quarter valued at $98,000. 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.