Udemy (NASDAQ:UDMY) Shares Gap Up - Still a Buy?

Key Points

• Udemy's stock opened at $7.39 after a previous close of $6.98, with the latest trading price at $7.51.
• Analysts have mixed ratings on Udemy, with price targets ranging from $8.00 to $12.00, and an average consensus target price set at $9.75.
• The company's latest quarterly earnings showed $200.30 million in revenue, exceeding the $197.19 million consensus estimate and a 1.8% increase year-over-year.
• Insider activity includes CFO Sarah Blanchard selling 25,000 shares and CEO Hugo Sarrazin acquiring 22,695 shares, reflecting differing confidence levels in the company's future.

Udemy, Inc. (NASDAQ:UDMY - Get Free Report)'s stock price gapped up prior to trading on Friday . The stock had previously closed at $6.98, but opened at $7.39. Udemy shares last traded at $7.51, with a volume of 564,032 shares changing hands.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on UDMY shares. Canaccord Genuity Group reduced their price target on Udemy from $14.00 to $12.00 and set a "buy" rating for the company in a report on Thursday, May 1st. Cantor Fitzgerald reduced their price target on Udemy from $11.00 to $9.00 and set an "overweight" rating for the company in a report on Thursday, May 1st. Morgan Stanley upgraded Udemy from an "underweight" rating to an "equal weight" rating and lifted their price target for the stock from $7.00 to $9.00 in a report on Thursday, June 5th. Wall Street Zen cut Udemy from a "strong-buy" rating to a "buy" rating in a report on Saturday, July 12th. Finally, JPMorgan Chase & Co. reduced their price target on Udemy from $11.00 to $8.00 and set a "neutral" rating for the company in a report on Thursday, April 24th. Five research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $9.75.

Udemy Price Performance

The business's 50-day moving average price is $7.07 and its two-hundred day moving average price is $7.57. The company has a market capitalization of $1.10 billion, a price-to-earnings ratio of -16.12 and a beta of 1.77.

Udemy (NASDAQ:UDMY - Get Free Report) last released its quarterly earnings results on Wednesday, April 30th. The company reported $0.12 earnings per share for the quarter, beating analysts' consensus estimates of $0.10 by $0.02. Udemy had a negative net margin of 8.70% and a negative return on equity of 22.68%. The company had revenue of $200.30 million during the quarter, compared to the consensus estimate of $197.19 million. During the same period in the previous year, the business earned $0.03 earnings per share. The firm's quarterly revenue was up 1.8% on a year-over-year basis. As a group, research analysts predict that Udemy, Inc. will post -0.09 EPS for the current year.

Insider Buying and Selling

In related news, CFO Sarah Blanchard sold 25,000 shares of Udemy stock in a transaction that occurred on Friday, June 13th. The shares were sold at an average price of $6.99, for a total value of $174,750.00. Following the transaction, the chief financial officer directly owned 1,077,097 shares of the company's stock, valued at $7,528,908.03. This trade represents a 2.27% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Hugo Sarrazin acquired 22,695 shares of the firm's stock in a transaction that occurred on Wednesday, May 21st. The stock was purchased at an average cost of $6.91 per share, for a total transaction of $156,822.45. Following the completion of the purchase, the chief executive officer directly owned 47,580 shares of the company's stock, valued at $328,777.80. The trade was a 91.20% increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last quarter, insiders bought 47,580 shares of company stock valued at $330,894. 2.10% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Deutsche Bank AG increased its stake in Udemy by 100.8% in the fourth quarter. Deutsche Bank AG now owns 112,775 shares of the company's stock valued at $928,000 after acquiring an additional 56,619 shares during the last quarter. BNP Paribas Financial Markets bought a new position in Udemy in the fourth quarter valued at approximately $716,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in Udemy by 17.9% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 181,864 shares of the company's stock valued at $1,497,000 after acquiring an additional 27,673 shares during the last quarter. Teacher Retirement System of Texas bought a new position in Udemy in the first quarter valued at approximately $97,000. Finally, GAMMA Investing LLC increased its stake in Udemy by 558.3% in the first quarter. GAMMA Investing LLC now owns 6,945 shares of the company's stock valued at $54,000 after acquiring an additional 5,890 shares during the last quarter. 79.48% of the stock is owned by institutional investors.

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.

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.