Udemy (NASDAQ:UDMY) Reaches New 12-Month Low - Here's What Happened

Key Points

• Udemy hit a new 52-week low, trading as low as $4.09 and down about 10% to $4.17 on Friday with roughly 25,400 shares changing hands.
• The company posted a slight quarterly beat ( $0.12 EPS on $193.99M revenue) but revenue was down 3% year-over-year, net margin is only 0.48% and the stock carries a high P/E (~213) amid a consensus Hold rating and $9.17 price target.
• CFO Sarah Blanchard sold 25,000 shares at about $4.78, insiders own 2.10% of the stock, and institutional investors hold 79.48% with several large funds (AQR, Goldman, Millennium, Jane Street) recently increasing their positions.

Udemy, Inc. (NASDAQ:UDMY - Get Free Report)'s stock price hit a new 52-week low during trading on Friday . The stock traded as low as $4.09 and last traded at $4.17, with a volume of 25394 shares. The stock had previously closed at $4.73.

Analysts Set New Price Targets

UDMY has been the topic of several recent analyst reports. Weiss Ratings restated a "sell (e+)" rating on shares of Udemy in a research note on Wednesday, January 21st. Canaccord Genuity Group set a $5.00 price objective on shares of Udemy in a research note on Monday, February 9th. Finally, KeyCorp lowered shares of Udemy from an "overweight" rating to a "sector weight" rating in a research note on Tuesday, January 13th. Three investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Udemy has a consensus rating of "Hold" and a consensus price target of $9.17.

Udemy Trading Down 10.0%

The company has a market capitalization of $620.97 million, a price-to-earnings ratio of 212.86 and a beta of 1.68. The firm's 50 day moving average price is $4.79 and its two-hundred day moving average price is $5.29.

Udemy (NASDAQ:UDMY - Get Free Report) last released its quarterly earnings data on Thursday, February 5th. The company reported $0.12 earnings per share for the quarter, topping the consensus estimate of $0.10 by $0.02. The company had revenue of $193.99 million for the quarter, compared to analyst estimates of $193.40 million. Udemy had a net margin of 0.48% and a return on equity of 4.84%. Udemy's revenue for the quarter was down 3.0% compared to the same quarter last year. During the same period in the previous year, the business earned $0.10 EPS. As a group, equities research analysts predict that Udemy, Inc. will post -0.01 EPS for the current year.

Insider Buying and Selling

In related news, CFO Sarah Blanchard sold 25,000 shares of the company's stock in a transaction dated Friday, March 13th. The shares were sold at an average price of $4.78, for a total value of $119,500.00. Following the transaction, the chief financial officer owned 1,455,763 shares in the company, valued at approximately $6,958,547.14. This represents a 1.69% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 2.10% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of UDMY. AQR Capital Management LLC grew its stake in Udemy by 217.6% in the 1st quarter. AQR Capital Management LLC now owns 205,212 shares of the company's stock valued at $1,592,000 after buying an additional 140,597 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in Udemy by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 54,071 shares of the company's stock valued at $420,000 after buying an additional 2,399 shares during the last quarter. Millennium Management LLC grew its stake in Udemy by 5.0% in the 1st quarter. Millennium Management LLC now owns 753,782 shares of the company's stock valued at $5,849,000 after buying an additional 35,577 shares during the last quarter. Goldman Sachs Group Inc. grew its stake in Udemy by 45.2% in the 1st quarter. Goldman Sachs Group Inc. now owns 658,603 shares of the company's stock valued at $5,111,000 after buying an additional 205,104 shares during the last quarter. Finally, Jane Street Group LLC grew its stake in Udemy by 116.6% in the 1st quarter. Jane Street Group LLC now owns 143,497 shares of the company's stock valued at $1,114,000 after buying an additional 77,260 shares during the last quarter. Institutional investors and hedge funds own 79.48% of the company's stock.

About Udemy

Udemy, Inc NASDAQ: UDMY operates a leading online learning marketplace that connects learners and instructors across a wide range of subject areas. The company's platform hosts thousands of self-paced video courses covering technology, business, personal development, creative arts and more. Individual learners can purchase courses on demand, while instructors receive revenue share for teaching content to a global audience.

In addition to its consumer-facing marketplace, Udemy provides enterprise learning solutions under the Udemy for Business brand.

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