Udemy (NASDAQ:UDMY) Shares Down 7.2% - What's Next?

Key Points

• Udemy's stock price fell by 7.2%, closing at $6.38 after trading as low as $6.40.
• The company has received mixed ratings from analysts, with a consensus rating of "Hold" and a price target averaging $9.75.
• Udemy has initiated a $50 million stock repurchase plan, indicating confidence in its valuation after recent stock performance.

Udemy, Inc. (NASDAQ:UDMY - Get Free Report)'s stock price fell 7.2% during trading on Tuesday . The company traded as low as $6.40 and last traded at $6.38. 1,790,956 shares traded hands during mid-day trading, an increase of 34% from the average session volume of 1,341,393 shares. The stock had previously closed at $6.87.

Analysts Set New Price Targets

A number of research firms have commented on UDMY. Weiss Ratings restated a "sell (e+)" rating on shares of Udemy in a report on Saturday, September 27th. Wall Street Zen upgraded Udemy from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 2nd. Cantor Fitzgerald lifted 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. Needham & Company LLC reiterated a "buy" rating and set a $11.00 price target on shares of Udemy in a research note on Thursday, July 31st. Finally, Zacks Research downgraded Udemy from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, September 2nd. Five research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $9.75.

Udemy Price Performance

The stock has a market capitalization of $965.93 million, a PE ratio of -30.57 and a beta of 1.76. The stock's 50 day simple moving average is $7.00 and its two-hundred day simple moving average is $7.00.

Udemy (NASDAQ:UDMY - Get Free Report) last released its earnings results on Wednesday, July 30th. The company reported $0.16 earnings per share for the quarter, beating analysts' consensus estimates of $0.12 by $0.04. The firm had revenue of $199.88 million for the quarter, compared to analysts' expectations of $196.74 million. Udemy had a negative net margin of 3.85% and a negative return on equity of 5.19%. The company's quarterly revenue was up 2.8% on a year-over-year basis. During the same period in the previous year, the company earned ($0.04) earnings per share. Udemy has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. As a group, equities research analysts predict that Udemy, Inc. will post -0.09 earnings per share for the current fiscal year.

Udemy announced that its board has initiated a stock repurchase plan on Wednesday, September 10th that allows the company to repurchase $50.00 million in outstanding shares. This repurchase authorization allows the company to buy up to 5% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's leadership believes its stock is undervalued.

Insider Activity

In other news, CFO Sarah Blanchard sold 25,000 shares of the business's stock in a transaction that occurred on Monday, September 15th. The shares were sold at an average price of $7.08, for a total value of $177,000.00. Following the sale, the chief financial officer owned 1,287,953 shares of the company's stock, valued at $9,118,707.24. The trade was a 1.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 3.20% of the stock is currently owned by company insiders.

Institutional Trading of Udemy

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. GAMMA Investing LLC increased its holdings in shares of Udemy by 558.3% in the 1st quarter. GAMMA Investing LLC now owns 6,945 shares of the company's stock worth $54,000 after buying an additional 5,890 shares during the last quarter. Osaic Holdings Inc. bought a new position in shares of Udemy in the 2nd quarter worth $56,000. New York State Teachers Retirement System bought a new position in shares of Udemy in the 2nd quarter worth $58,000. Prudential Financial Inc. bought a new position in shares of Udemy in the 2nd quarter worth $79,000. Finally, Hsbc Holdings PLC bought a new position in shares of Udemy in the 1st quarter worth $82,000. Institutional investors own 79.48% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.