Udemy (NASDAQ:UDMY) Sets New 12-Month Low - Should You Sell?

Key Points

• Udemy hit a new 52-week low, trading as low as $4.25 and last at $4.33 (down ~5.7%) with a market cap of about $614.6 million.
• Analysts have an average rating of Hold and an average price target of $9.00 (3 Buys, 5 Holds, 1 Sell), with recent downgrades from KeyCorp and a "sell (e+)" from Weiss Ratings.
• Udemy slightly beat quarterly EPS ($0.12 vs. $0.10) while revenue fell 3% year‑over‑year and analysts expect -$0.09 EPS for the current year; the CFO sold 25,000 shares and insiders own roughly 2.1% while institutions hold about 79.5%.

Udemy, Inc. (NASDAQ:UDMY - Get Free Report) hit a new 52-week low during trading on Friday . The stock traded as low as $4.25 and last traded at $4.33, with a volume of 156580 shares trading hands. The stock had previously closed at $4.47.

Analyst Ratings Changes

UDMY has been the subject of several recent research reports. KeyCorp cut Udemy from an "overweight" rating to a "sector weight" rating in a research report on Tuesday, January 13th. Canaccord Genuity Group set a $5.00 price target on Udemy in a research report on Monday, February 9th. Finally, Weiss Ratings reissued a "sell (e+)" rating on shares of Udemy in a research report on Wednesday, January 21st. Three analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Udemy presently has an average rating of "Hold" and an average price target of $9.00.

Udemy Stock Down 5.7%

The firm has a 50 day simple moving average of $4.76 and a 200-day simple moving average of $5.43. The stock has a market cap of $614.63 million, a P/E ratio of 210.86 and a beta of 1.68.

Udemy (NASDAQ:UDMY - Get Free Report) last released its quarterly earnings data on Thursday, February 5th. The company reported $0.12 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.10 by $0.02. The firm had revenue of $193.99 million for the quarter, compared to analyst estimates of $193.40 million. Udemy had a return on equity of 4.84% and a net margin of 0.48%.The business's revenue for the quarter was down 3.0% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.10 earnings per share. On average, equities analysts anticipate that Udemy, Inc. will post -0.09 earnings per share for the current year.

Insider Transactions at Udemy

In other Udemy news, CFO Sarah Blanchard sold 25,000 shares of the company's stock in a transaction that occurred on Friday, March 13th. The stock was sold at an average price of $4.78, for a total value of $119,500.00. Following the sale, the chief financial officer owned 1,455,763 shares in the company, valued at $6,958,547.14. This represents a 1.69% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 2.10% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Udemy

A number of large investors have recently made changes to their positions in the company. Hsbc Holdings PLC bought a new position in shares of Udemy during the fourth quarter worth approximately $292,000. PEAK6 LLC increased its stake in shares of Udemy by 191.6% during the fourth quarter. PEAK6 LLC now owns 26,440 shares of the company's stock worth $155,000 after purchasing an additional 17,373 shares during the period. Caitong International Asset Management Co. Ltd increased its stake in shares of Udemy by 76,393.8% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 12,239 shares of the company's stock worth $72,000 after purchasing an additional 12,223 shares during the period. Pacer Advisors Inc. bought a new position in shares of Udemy during the fourth quarter worth approximately $2,683,000. Finally, Invesco Ltd. increased its stake in shares of Udemy by 28.2% during the fourth quarter. Invesco Ltd. now owns 208,851 shares of the company's stock worth $1,222,000 after purchasing an additional 45,976 shares during the period. Institutional investors 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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