Udemy (NASDAQ:UDMY) Upgraded by Wall Street Zen to Strong-Buy Rating

Key Points

• Udemy has been upgraded from a "buy" rating to a "strong-buy" rating by Wall Street Zen, signaling increased confidence from analysts.
• The company's stock performance shows a current price of $7.27 with a 52-week range between $5.68 and $10.61.
• In its last quarterly earnings report, Udemy posted $0.16 earnings per share, exceeding estimates, with revenues of $199.88 million.

Wall Street Zen upgraded shares of Udemy (NASDAQ:UDMY - Free Report) from a buy rating to a strong-buy rating in a research report report published on Saturday.

Other research analysts have also issued research reports about the company. Truist Financial reaffirmed a "hold" rating and set a $7.00 price objective (down previously from $10.00) on shares of Udemy in a report on Monday, April 7th. Cantor Fitzgerald upped 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. Robert W. Baird dropped their price objective on Udemy from $13.00 to $11.00 and set an "outperform" rating on the stock in a report on Thursday, May 1st. Canaccord Genuity Group decreased their target price on Udemy from $14.00 to $12.00 and set a "buy" rating on the stock in a research report on Thursday, May 1st. Finally, Morgan Stanley upgraded Udemy from an "underweight" rating to an "equal weight" rating and boosted their target price for the stock from $7.00 to $9.00 in a research report on Thursday, June 5th. Four analysts have rated the stock with a hold rating, six have issued a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $10.00.

Udemy Stock Performance

Shares of UDMY traded down $0.07 during midday trading on Friday, hitting $7.37. The company had a trading volume of 917,680 shares, compared to its average volume of 1,226,589. The company's 50-day simple moving average is $7.13 and its 200-day simple moving average is $7.50. The firm has a market capitalization of $1.11 billion, a P/E ratio of -35.07 and a beta of 1.78. Udemy has a 1 year low of $5.68 and a 1 year high of $10.61.

Udemy (NASDAQ:UDMY - Get Free Report) last posted its earnings results on Wednesday, July 30th. The company reported $0.16 earnings per share for the quarter, topping the consensus estimate of $0.12 by $0.04. The firm had revenue of $199.88 million during the quarter, compared to analysts' expectations of $196.74 million. Udemy had a negative return on equity of 5.19% and a negative net margin of 3.85%. The firm's revenue was up 2.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($0.04) earnings per share. Equities analysts predict that Udemy will post -0.09 earnings per share for the current fiscal year.

Insider Transactions at Udemy

In related news, CFO Sarah Blanchard sold 25,000 shares of the stock in a transaction dated Friday, June 13th. The stock was sold at an average price of $6.99, for a total value of $174,750.00. Following the completion of the transaction, the chief financial officer owned 1,077,097 shares of the company's stock, valued at approximately $7,528,908.03. This represents a 2.27% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO Hugo Sarrazin bought 22,695 shares of Udemy stock in a transaction on Wednesday, May 21st. The shares were purchased at an average cost of $6.91 per share, for a total transaction of $156,822.45. Following the acquisition, the chief executive officer owned 47,580 shares in the company, 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. Insiders purchased 47,580 shares of company stock valued at $330,894 in the last three months. 3.20% of the stock is currently owned by company insiders.

Institutional Trading of Udemy

Several large investors have recently added to or reduced their stakes in UDMY. Quarry LP acquired a new position in shares of Udemy during the 4th quarter valued at $34,000. Vega Investment Solutions acquired a new position in shares of Udemy during the 4th quarter valued at $46,000. GAMMA Investing LLC increased its position in shares of Udemy by 558.3% during the 1st quarter. GAMMA Investing LLC now owns 6,945 shares of the company's stock valued at $54,000 after purchasing an additional 5,890 shares during the period. New York State Teachers Retirement System acquired a new position in shares of Udemy during the 2nd quarter valued at $58,000. Finally, State of Wyoming acquired a new position in shares of Udemy during the 4th quarter valued at $59,000. 79.48% of the stock is currently owned by institutional investors and hedge funds.

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.