Wall Street Zen Upgrades Coursera (NYSE:COUR) to "Buy"

Key Points

• Wall Street Zen upgraded Coursera from “hold” to “buy,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $8.50.
• Coursera reported quarterly EPS of $0.17 versus the $0.10 consensus estimate and revenue of $298.6 million, up 59.6% year over year.
• Despite strong headline results, investors remain concerned about weaker core enterprise revenue, Udemy integration risks and the company’s $100 million LearnVector investment; Coursera has also authorized a $500 million share-repurchase plan.

Coursera (NYSE:COUR - Get Free Report) was upgraded by stock analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a report issued on Sunday.

COUR has been the topic of a number of other reports. Telsey Advisory Group dropped their price objective on shares of Coursera from $14.00 to $10.00 and set an "outperform" rating on the stock in a report on Friday, April 24th. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $7.00 price target on shares of Coursera in a research report on Wednesday, June 24th. Bank of America dropped their price target on Coursera from $8.00 to $7.00 and set a "neutral" rating on the stock in a research note on Tuesday, June 30th. Weiss Ratings upgraded Coursera from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Tuesday. Finally, Zacks Research raised Coursera from a "hold" rating to a "strong-buy" rating in a report on Friday, July 24th. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $8.50.

Coursera Price Performance

Shares of NYSE:COUR opened at $5.28 on Friday. The business's 50-day moving average is $5.55 and its 200 day moving average is $5.85. Coursera has a 1 year low of $5.00 and a 1 year high of $12.93. The firm has a market capitalization of $894.57 million, a P/E ratio of -7.88, a P/E/G ratio of 2.14 and a beta of 1.23.

Coursera (NYSE:COUR - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The company reported $0.17 earnings per share for the quarter, topping analysts' consensus estimates of $0.10 by $0.07. Coursera had a negative return on equity of 2.08% and a negative net margin of 15.39%.The business had revenue of $298.60 million for the quarter, compared to analyst estimates of $293.61 million. During the same quarter in the previous year, the firm earned $0.12 earnings per share. The company's revenue was up 59.6% on a year-over-year basis. On average, analysts expect that Coursera will post 0.06 EPS for the current year.

Coursera declared that its Board of Directors has authorized a stock repurchase plan on Monday, May 18th that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the company to purchase up to 55.9% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's management believes its shares are undervalued.

Insider Activity at Coursera

In related news, major shareholder Insight Holdings Group, Llc sold 1,466,372 shares of the firm's stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $5.24, for a total transaction of $7,683,789.28. Following the sale, the insider owned 419,784 shares in the company, valued at approximately $2,199,668.16. This trade represents a 77.74% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, SVP Alan B. Cardenas sold 9,139 shares of Coursera stock in a transaction on Monday, May 18th. The shares were sold at an average price of $5.52, for a total transaction of $50,447.28. Following the completion of the transaction, the senior vice president directly owned 255,934 shares of the company's stock, valued at $1,412,755.68. The trade was a 3.45% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 2,009,139 shares of company stock valued at $10,643,180. Insiders own 16.30% of the company's stock.

Hedge Funds Weigh In On Coursera

Several institutional investors and hedge funds have recently modified their holdings of the business. Arkfeld Wealth Strategies L.L.C. purchased a new stake in Coursera during the 2nd quarter worth approximately $97,000. Versant Capital Management Inc lifted its position in shares of Coursera by 63.2% in the second quarter. Versant Capital Management Inc now owns 5,555 shares of the company's stock valued at $31,000 after acquiring an additional 2,152 shares in the last quarter. Pacer Advisors Inc. boosted its stake in shares of Coursera by 19.6% in the first quarter. Pacer Advisors Inc. now owns 509,956 shares of the company's stock worth $2,968,000 after acquiring an additional 83,603 shares during the last quarter. Optiver Holding B.V. acquired a new stake in shares of Coursera in the first quarter worth approximately $31,000. Finally, Edgestream Partners L.P. increased its position in shares of Coursera by 5.1% during the first quarter. Edgestream Partners L.P. now owns 50,568 shares of the company's stock worth $294,000 after purchasing an additional 2,435 shares in the last quarter. Hedge funds and other institutional investors own 89.55% of the company's stock.

Coursera News Summary

Here are the key news stories impacting Coursera this week:

• Positive Sentiment: Coursera reported second-quarter adjusted earnings of $0.17 per share, above the $0.11 consensus estimate, while revenue reached approximately $298.6 million and increased 59.6% year over year. The results also exceeded some revenue expectations. Coursera Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Management expects roughly a 14% adjusted EBITDA margin in 2026 and at least $85 million in annualized run-rate synergies by year-end, supporting the potential for improved profitability following its Udemy combination. Coursera EBITDA Margin and Synergies
• Positive Sentiment: Coursera announced a $100 million investment in LearnVector for an approximately one-third stake, potentially expanding its artificial-intelligence and learning technology capabilities. Zacks also upgraded COUR to a Rank #1, or Strong Buy, citing improving earnings prospects. Coursera Invests in LearnVector
• Neutral Sentiment: Analysts view the quarter as a defining test of Coursera’s growth strategy: strong reported growth and cost synergies must be sustained while the company integrates Udemy and expands its AI offerings. Coursera Faces a Defining Growth Test
• Negative Sentiment: The primary reason for the selloff was lower second-quarter core revenue and investor concern that enterprise customers are pulling back. This raised questions about the quality and durability of growth, even though headline revenue and EPS were strong. Coursera Slides on Lower Second-Quarter Core Revenue
• Negative Sentiment: Coursera shares fell sharply after the results, with bearish commentary highlighting enterprise customer weakness and uncertainty surrounding the post-Udemy outlook. The $100 million LearnVector investment may also increase near-term execution and capital-allocation risk. Coursera Plunges After Q2 Results

Coursera Company Profile

Coursera, Inc NYSE: COUR operates a leading online learning platform that delivers courses, specializations, professional certificates and fully accredited degree programs in collaboration with top universities and industry partners. Founded in 2012 by Stanford University professors Andrew Ng and Daphne Koller, Coursera's mission is to provide universal access to world-class education and bridge skill gaps in a rapidly evolving job market.

The platform features more than 6,000 offerings created by over 275 academic institutions and corporate entities, spanning fields such as data science, business, technology, health care and the arts.

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