Udemy (NASDAQ:UDMY) Shares Gap Up on Better-Than-Expected Earnings

Key Points

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Udemy, Inc. (NASDAQ:UDMY - Get Free Report) gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $6.99, but opened at $7.94. Udemy shares last traded at $7.75, with a volume of 561,378 shares changing hands.

The company reported $0.16 earnings per share (EPS) for the quarter, beating the consensus estimate 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 net margin of 3.85% and a negative return on equity of 5.40%. The firm's revenue was up 2.8% on a year-over-year basis. During the same period in the previous year, the firm posted ($0.04) EPS.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on UDMY. Morgan Stanley raised Udemy from an "underweight" rating to an "equal weight" rating and raised their target price for the stock from $7.00 to $9.00 in a research report on Thursday, June 5th. Truist Financial reiterated a "hold" rating and set a $7.00 target price (down previously from $10.00) on shares of Udemy in a research report on Monday, April 7th. Cantor Fitzgerald boosted their price target on shares of Udemy from $9.00 to $10.00 and gave the company an "overweight" rating in a research note on Thursday. Canaccord Genuity Group reduced their target price on shares of Udemy from $14.00 to $12.00 and set a "buy" rating for the company in a research note on Thursday, May 1st. Finally, Wall Street Zen upgraded shares of Udemy from a "buy" rating to a "strong-buy" rating in a research note on Saturday. Four analysts have rated the stock with a hold rating, six have given a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, Udemy currently has a consensus rating of "Moderate Buy" and an average target price of $10.00.

Insider Activity

In other news, CEO Hugo Sarrazin purchased 22,695 shares of the stock in a transaction dated Wednesday, May 21st. The shares were purchased at an average cost of $6.91 per share, with a total value of $156,822.45. Following the completion of the acquisition, the chief executive officer owned 47,580 shares in the company, valued at $328,777.80. This represents a 91.20% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CFO Sarah Blanchard sold 25,000 shares of the 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 sale, the chief financial officer directly owned 1,077,097 shares in the company, valued at approximately $7,528,908.03. The trade was a 2.27% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have acquired 47,580 shares of company stock worth $330,894. Insiders own 2.10% of the company's stock.

Hedge Funds Weigh In On Udemy

Institutional investors have recently made changes to their positions in the stock. Focus Partners Wealth grew its position in Udemy by 1.9% during the first quarter. Focus Partners Wealth now owns 79,437 shares of the company's stock valued at $616,000 after acquiring an additional 1,468 shares during the last quarter. Rhumbline Advisers boosted its holdings in Udemy by 1.2% in the first quarter. Rhumbline Advisers now owns 132,289 shares of the company's stock valued at $1,027,000 after acquiring an additional 1,613 shares in the last quarter. HighTower Advisors LLC boosted its holdings in Udemy by 7.8% in the first quarter. HighTower Advisors LLC now owns 22,551 shares of the company's stock valued at $175,000 after acquiring an additional 1,641 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in Udemy by 4.6% during the first 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 period. Finally, MetLife Investment Management LLC lifted its position in Udemy by 6.2% during the fourth quarter. MetLife Investment Management LLC now owns 59,465 shares of the company's stock valued at $489,000 after buying an additional 3,450 shares during the period. Institutional investors own 79.48% of the company's stock.

Udemy Price Performance

The firm has a 50-day simple moving average of $7.12 and a 200 day simple moving average of $7.52. The firm has a market cap of $1.08 billion, a PE ratio of -34.62 and a beta of 1.78.

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.