Udemy (NASDAQ:UDMY) Shares Gap Up Following 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 trading hands.

The company reported $0.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.12 by $0.04. Udemy had a negative net margin of 3.85% and a negative return on equity of 5.19%. The company had revenue of $199.88 million for the quarter, compared to analyst estimates of $196.74 million. During the same quarter in the previous year, the firm posted ($0.04) earnings per share. The company's quarterly revenue was up 2.8% compared to the same quarter last year.

Analysts Set New Price Targets

A number of analysts recently weighed in on the stock. Morgan Stanley raised shares of 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 report on Thursday, June 5th. Wall Street Zen raised shares of Udemy from a "buy" rating to a "strong-buy" rating in a report on Saturday. Robert W. Baird decreased their target price on shares of Udemy from $13.00 to $11.00 and set an "outperform" rating on the stock in a report on Thursday, May 1st. Needham & Company LLC reaffirmed a "buy" rating and set a $11.00 target price on shares of Udemy in a report on Thursday. Finally, JPMorgan Chase & Co. decreased their price target on shares of Udemy from $11.00 to $8.00 and set a "neutral" rating on the stock in a report on Thursday, April 24th. Four equities research analysts have rated the stock with a hold rating, six have issued a buy rating and one has given a strong buy rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $10.00.

Insiders Place Their Bets

In other Udemy news, CEO Hugo Sarrazin acquired 22,695 shares of the business's stock in a transaction dated Wednesday, May 21st. The stock was bought at an average price of $6.91 per share, with a total value of $156,822.45. Following the purchase, the chief executive officer owned 47,580 shares of the company's stock, valued at approximately $328,777.80. This trade represents a 91.20% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Sarah Blanchard sold 25,000 shares of the stock in a transaction on Friday, June 13th. The shares were sold at an average price of $6.99, for a total transaction of $174,750.00. Following the sale, the chief financial officer directly owned 1,077,097 shares of the company's stock, valued at $7,528,908.03. The trade was a 2.27% decrease in their position. The disclosure for this sale can be found here. Insiders bought a total of 47,580 shares of company stock valued at $330,894 in the last ninety days. 3.20% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Udemy

Several institutional investors have recently added to or reduced their stakes in the company. Focus Partners Wealth boosted its position in Udemy by 1.9% during the 1st quarter. Focus Partners Wealth now owns 79,437 shares of the company's stock valued at $616,000 after buying an additional 1,468 shares during the period. Rhumbline Advisers raised its holdings in Udemy by 1.2% in the 1st quarter. Rhumbline Advisers now owns 132,289 shares of the company's stock worth $1,027,000 after purchasing an additional 1,613 shares in the last quarter. HighTower Advisors LLC raised its holdings in Udemy by 7.8% in the 1st quarter. HighTower Advisors LLC now owns 22,551 shares of the company's stock worth $175,000 after purchasing an additional 1,641 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings 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 worth $420,000 after purchasing an additional 2,399 shares in the last quarter. Finally, MetLife Investment Management LLC raised its holdings in Udemy by 6.2% in the 4th quarter. MetLife Investment Management LLC now owns 59,465 shares of the company's stock worth $489,000 after purchasing an additional 3,450 shares in the last quarter. Hedge funds and other institutional investors own 79.48% of the company's stock.

Udemy Trading Up 2.2%

The firm has a market capitalization of $1.12 billion, a P/E ratio of -35.38 and a beta of 1.78. The company's fifty day simple moving average is $7.13 and its 200 day simple moving average is $7.50.

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.