Udemy (NASDAQ:UDMY) Cut to "Hold" at 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 note issued to investors on Tuesday, September 2nd,Zacks.com reports.

A number of other equities analysts have also weighed in on UDMY. Wall Street Zen upgraded Udemy from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 2nd. Needham & Company LLC restated a "buy" rating and issued a $11.00 target price on shares of Udemy in a research note on Thursday, July 31st. Cantor Fitzgerald upped their target price on Udemy from $9.00 to $10.00 and gave the stock an "overweight" rating in a research note on Thursday, July 31st. Finally, Morgan Stanley upgraded Udemy from an "underweight" rating to an "equal weight" rating and upped their target price for the stock from $7.00 to $9.00 in a research note on Thursday, June 5th. Five investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, Udemy presently has an average rating of "Moderate Buy" and a consensus price target of $9.75.

Udemy Stock Up 1.0%

Shares of NASDAQ:UDMY traded up $0.07 during midday trading on Tuesday, reaching $6.86. 628,714 shares of the company traded hands, compared to its average volume of 1,277,358. Udemy has a 12 month low of $5.68 and a 12 month high of $10.61. The firm has a market capitalization of $1.03 billion, a price-to-earnings ratio of -32.64 and a beta of 1.77. The firm's fifty day moving average price is $6.98 and its two-hundred day moving average price is $7.27.

Udemy (NASDAQ:UDMY - Get Free Report) last released its quarterly earnings data 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 analyst estimates of $196.74 million. Udemy had a negative return on equity of 5.19% and a negative net margin of 3.85%.The firm's revenue for the quarter was up 2.8% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.04) EPS. Udemy has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. Analysts forecast that Udemy will post -0.09 earnings per share for the current year.

Insiders Place Their Bets

In related news, CFO Sarah Blanchard sold 25,000 shares of the business's stock in a transaction that occurred on Friday, June 13th. The stock was sold at an average price of $6.99, for a total value of $174,750.00. Following the completion of the sale, the chief financial officer owned 1,077,097 shares in the company, valued at $7,528,908.03. The trade was a 2.27% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 3.20% of the stock is owned by insiders.

Institutional Investors Weigh In On Udemy

Several institutional investors have recently bought and sold shares of UDMY. Raymond James Financial Inc. purchased a new stake in Udemy during the 4th quarter valued at about $164,000. Stifel Financial Corp purchased a new stake in Udemy in the 4th quarter worth approximately $294,000. Price T Rowe Associates Inc. MD lifted its holdings in Udemy by 14.0% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 36,064 shares of the company's stock worth $297,000 after buying an additional 4,418 shares during the period. Northern Trust Corp lifted its holdings in Udemy by 6.1% in the 4th quarter. Northern Trust Corp now owns 836,920 shares of the company's stock worth $6,888,000 after buying an additional 48,298 shares during the period. Finally, Ameriprise Financial Inc. purchased a new position in shares of Udemy in the 4th quarter valued at approximately $98,000. 79.48% of the stock is currently owned by hedge funds and other institutional investors.

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.