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

Key Points

• Udemy's share price experienced a gap up, opening at $6.91 after closing at $6.67, and trading at $7.06 with a volume of 274,354 shares.
• Recent analyst ratings show mixed sentiment, with Zacks downgrading the stock to "hold," while Wall Street Zen upgraded it to "strong-buy," and the overall consensus rating is a "Moderate Buy" with a price target of $9.75.
• The company's latest earnings report indicated a 2.8% increase in revenue year-over-year, with earnings per share exceeding estimates at $0.16 compared to an estimated $0.12.

Udemy, Inc. (NASDAQ:UDMY - Get Free Report)'s share price gapped up prior to trading on Thursday . The stock had previously closed at $6.67, but opened at $6.91. Udemy shares last traded at $7.06, with a volume of 274,354 shares changing hands.

Analyst Ratings Changes

UDMY has been the topic of several recent research reports. Zacks Research lowered Udemy from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, September 2nd. Wall Street Zen raised Udemy from a "buy" rating to a "strong-buy" rating in a report on Saturday, August 2nd. Morgan Stanley raised Udemy from an "underweight" rating to an "equal weight" rating and upped their target price for the company from $7.00 to $9.00 in a report on Thursday, June 5th. Cantor Fitzgerald increased their price objective on Udemy from $9.00 to $10.00 and gave the stock an "overweight" rating in a report on Thursday, July 31st. Finally, Needham & Company LLC reissued a "buy" rating and issued a $11.00 price objective on shares of Udemy in a report on Thursday, July 31st. Five research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat.com, Udemy has a consensus rating of "Moderate Buy" and a consensus price target of $9.75.

Udemy Stock Up 6.8%

The firm has a market capitalization of $1.07 billion, a price-to-earnings ratio of -33.93 and a beta of 1.77. The stock's 50 day moving average price is $6.97 and its two-hundred day moving average price is $7.27.

Udemy (NASDAQ:UDMY - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The company reported $0.16 earnings per share for the quarter, topping analysts' consensus estimates 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 business had revenue of $199.88 million for the quarter, compared to the consensus estimate of $196.74 million. During the same period in the prior year, the business posted ($0.04) earnings per share. Udemy's revenue for the quarter was up 2.8% compared to the same quarter last year. Udemy has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. On average, equities analysts expect that Udemy, Inc. will post -0.09 EPS for the current fiscal year.

Insider Buying and Selling

In other Udemy news, 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 transaction, the chief financial officer directly owned 1,077,097 shares of the company's stock, valued at $7,528,908.03. This represents a 2.27% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 2.10% of the stock is owned by insiders.

Hedge Funds Weigh In On Udemy

Several hedge funds have recently bought and sold shares of the business. Focus Partners Wealth lifted its stake in Udemy by 1.9% during the first quarter. Focus Partners Wealth now owns 79,437 shares of the company's stock worth $616,000 after purchasing an additional 1,468 shares during the period. Rhumbline Advisers lifted its stake in Udemy by 1.2% during the first quarter. Rhumbline Advisers now owns 132,289 shares of the company's stock worth $1,027,000 after purchasing an additional 1,613 shares during the period. HighTower Advisors LLC lifted its stake in Udemy by 7.8% during the first quarter. HighTower Advisors LLC now owns 22,551 shares of the company's stock worth $175,000 after purchasing an additional 1,641 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake 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 worth $420,000 after purchasing an additional 2,399 shares during the period. Finally, The Manufacturers Life Insurance Company lifted its stake in Udemy by 5.4% during the second quarter. The Manufacturers Life Insurance Company now owns 50,299 shares of the company's stock worth $354,000 after purchasing an additional 2,597 shares during the period. 79.48% of the stock is owned by institutional investors and hedge funds.

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.

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