Udemy (NASDAQ:UDMY) Shares Up 5.5% - Here's What Happened

Key Points

• Udemy shares rose 5.5% to $4.4850 on Monday, but trading volume was just 329,222 shares—about an 83% decline from the stock's average daily volume.
• The company slightly beat the quarter's estimates with $0.12 EPS versus $0.10 expected and $193.99M in revenue versus $193.4M expected, although revenue was down 3% year‑over‑year.
• Analysts' consensus is a Hold with an average price target of $9.17 (3 Buys, 4 Holds, 1 Sell); recent notes include Canaccord's $5 target and KeyCorp's downgrade to sector weight.

Udemy, Inc. (NASDAQ:UDMY - Get Free Report)'s stock price shot up 5.5% on Monday . The stock traded as high as $4.48 and last traded at $4.4850. 329,222 shares changed hands during trading, a decline of 83% from the average session volume of 1,889,923 shares. The stock had previously closed at $4.25.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on UDMY. Canaccord Genuity Group set a $5.00 price objective on Udemy in a report on Monday, February 9th. Weiss Ratings restated a "sell (e+)" rating on shares of Udemy in a research note on Wednesday, January 21st. Finally, KeyCorp cut Udemy from an "overweight" rating to a "sector weight" rating in a research note on Tuesday, January 13th. Three analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Hold" and an average price target of $9.17.

Udemy Trading Up 7.4%

The stock has a market cap of $666.22 million, a P/E ratio of 228.36 and a beta of 1.68. The company has a 50 day simple moving average of $4.78 and a 200 day simple moving average of $5.25.

Udemy (NASDAQ:UDMY - Get Free Report) last released its earnings results on Thursday, February 5th. The company reported $0.12 EPS for the quarter, beating the consensus estimate of $0.10 by $0.02. Udemy had a return on equity of 4.84% and a net margin of 0.48%.The firm had revenue of $193.99 million for the quarter, compared to analysts' expectations of $193.40 million. During the same quarter in the previous year, the business posted $0.10 EPS. The business's quarterly revenue was down 3.0% compared to the same quarter last year. As a group, sell-side analysts expect that Udemy, Inc. will post -0.01 earnings per share for the current year.

Insider Activity

In other news, CFO Sarah Blanchard sold 25,000 shares of the company's stock in a transaction that occurred on Friday, March 13th. The stock was sold at an average price of $4.78, for a total transaction of $119,500.00. Following the sale, the chief financial officer owned 1,455,763 shares in the company, valued at $6,958,547.14. This represents a 1.69% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. 3.20% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Udemy

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Inspire Investing LLC raised its stake in shares of Udemy by 37.3% during the 1st quarter. Inspire Investing LLC now owns 109,425 shares of the company's stock worth $506,000 after purchasing an additional 29,751 shares in the last quarter. OP Asset Management Ltd bought a new stake in shares of Udemy during the 1st quarter worth approximately $3,665,000. SVB Wealth LLC bought a new stake in shares of Udemy during the 1st quarter worth approximately $90,000. Hsbc Holdings PLC bought a new stake in shares of Udemy during the 4th quarter worth approximately $292,000. Finally, PEAK6 LLC raised its stake in shares of Udemy by 191.6% during the 4th quarter. PEAK6 LLC now owns 26,440 shares of the company's stock worth $155,000 after purchasing an additional 17,373 shares in the last quarter. Institutional investors own 79.48% of the company's stock.

About Udemy

Udemy, Inc NASDAQ: UDMY operates a leading online learning marketplace that connects learners and instructors across a wide range of subject areas. The company's platform hosts thousands of self-paced video courses covering technology, business, personal development, creative arts and more. Individual learners can purchase courses on demand, while instructors receive revenue share for teaching content to a global audience.

In addition to its consumer-facing marketplace, Udemy provides enterprise learning solutions under the Udemy for Business brand.

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