Udemy (NASDAQ:UDMY) Shares Gap Up - Time to 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.

Shares of Udemy, Inc. (NASDAQ:UDMY - Get Free Report) 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.

Wall Street Analysts Forecast Growth

UDMY has been the topic of a number of recent research reports. Cantor Fitzgerald increased their target price on Udemy from $9.00 to $10.00 and gave the company an "overweight" rating in a report on Thursday, July 31st. Needham & Company LLC reissued a "buy" rating and issued a $11.00 target price on shares of Udemy in a report on Thursday, July 31st. 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 increased their target price for the company from $7.00 to $9.00 in a report on Thursday, June 5th. Finally, Zacks Research downgraded Udemy from a "strong-buy" rating to a "hold" rating in a report on Tuesday, September 2nd. Five equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, Udemy currently has an average rating of "Moderate Buy" and a consensus target price of $9.75.

Udemy Stock Up 1.9%

The firm has a 50 day moving average price of $6.99 and a 200 day moving average price of $7.18. The stock has a market cap of $1.07 billion, a P/E ratio of -33.95 and a beta of 1.77.

Udemy (NASDAQ:UDMY - Get Free Report) last released its earnings results on Wednesday, July 30th. The company reported $0.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.12 by $0.04. Udemy had a negative return on equity of 5.19% and a negative net margin of 3.85%.The firm had revenue of $199.88 million during the quarter, compared to analysts' expectations of $196.74 million. During the same quarter last year, the business posted ($0.04) earnings per share. The firm's revenue was up 2.8% on a year-over-year basis. Udemy has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. Equities 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 program on Wednesday, September 10th that allows the company to buyback $50.00 million in shares. This buyback authorization allows the company to reacquire up to 5% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's management believes its stock is undervalued.

Institutional Trading of Udemy

Several institutional investors have recently made changes to their positions in UDMY. Northern Trust Corp grew its position in shares of Udemy by 6.1% during the fourth quarter. Northern Trust Corp now owns 836,920 shares of the company's stock worth $6,888,000 after purchasing an additional 48,298 shares in the last quarter. Ameriprise Financial Inc. purchased a new stake in shares of Udemy during the fourth quarter worth about $98,000. BNP Paribas Financial Markets purchased a new stake in shares of Udemy during the fourth quarter worth about $716,000. Deutsche Bank AG grew its position in shares of Udemy by 100.8% during the fourth quarter. Deutsche Bank AG now owns 112,775 shares of the company's stock worth $928,000 after purchasing an additional 56,619 shares in the last quarter. Finally, Millennium Management LLC purchased a new stake in shares of Udemy during the fourth quarter worth about $5,911,000. Hedge funds and other 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.