Weiss Ratings Reaffirms Sell (E+) Rating for Udemy (NASDAQ:UDMY)

Key Points

• Weiss Ratings has reaffirmed a "Sell (E+)" rating for Udemy (NASDAQ:UDMY), indicating continued concerns over the stock's performance.
• Despite the sell rating, some analysts have issued more optimistic views, with Cantor Fitzgerald raising Udemy's price target from $9.00 to $10.00 and Wall Street Zen upgrading to a "strong-buy" rating.
• Udemy recently initiated a $50 million stock repurchase plan, suggesting the board believes the stock is currently undervalued amid a backdrop of mixed analyst ratings.

Udemy (NASDAQ:UDMY - Get Free Report)'s stock had its "sell (e+)" rating reaffirmed by research analysts at Weiss Ratings in a research report issued to clients and investors on Wednesday,Weiss Ratings reports.

A number of other equities research analysts have also recently weighed in on UDMY. Cantor Fitzgerald raised their price target on Udemy from $9.00 to $10.00 and gave the company an "overweight" rating in a report on Thursday, July 31st. Wall Street Zen raised Udemy from a "buy" rating to a "strong-buy" rating in a research report on Saturday, August 2nd. Needham & Company LLC restated a "buy" rating and issued a $11.00 target price on shares of Udemy in a research note on Thursday, July 31st. Finally, Zacks Research lowered shares of Udemy from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, September 2nd. Five research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $9.75.

Udemy Price Performance

NASDAQ UDMY traded up $0.16 during trading on Wednesday, reaching $6.63. 2,880,857 shares of the company's stock traded hands, compared to its average volume of 1,930,148. Udemy has a 12-month low of $5.68 and a 12-month high of $10.61. The company's 50 day simple moving average is $6.98 and its two-hundred day simple moving average is $6.99. The firm has a market cap of $996.75 million, a price-to-earnings ratio of -31.57 and a beta of 1.76.

Udemy (NASDAQ:UDMY - Get Free Report) last posted its earnings results on Wednesday, July 30th. The company reported $0.16 EPS for the quarter, beating analysts' consensus estimates of $0.12 by $0.04. The company had revenue of $199.88 million for the quarter, compared to analysts' expectations of $196.74 million. Udemy had a negative net margin of 3.85% and a negative return on equity of 5.19%. Udemy's revenue for the quarter was up 2.8% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.04) earnings per share. Udemy has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. Research analysts expect that Udemy will post -0.09 earnings per share for the current fiscal year.

Udemy declared that its Board of Directors has initiated a stock repurchase plan on Wednesday, September 10th that permits the company to repurchase $50.00 million in outstanding shares. This repurchase authorization permits the company to repurchase up to 5% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's board believes its stock is undervalued.

Insider Transactions at Udemy

In other Udemy news, CFO Sarah Blanchard sold 25,000 shares of the stock in a transaction that occurred on Monday, September 15th. The shares were sold at an average price of $7.08, for a total value of $177,000.00. Following the completion of the sale, the chief financial officer owned 1,287,953 shares of the company's stock, valued at $9,118,707.24. This trade represents a 1.90% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 2.10% of the company's stock.

Hedge Funds Weigh In On Udemy

A number of large investors have recently made changes to their positions in UDMY. GAMMA Investing LLC boosted its holdings 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 acquiring an additional 5,890 shares in the last quarter. Osaic Holdings Inc. bought a new position in Udemy in the 2nd quarter valued at $56,000. New York State Teachers Retirement System bought a new stake in Udemy in the 2nd quarter valued at about $58,000. Prudential Financial Inc. bought a new position in Udemy in the 2nd quarter worth about $79,000. Finally, Hsbc Holdings PLC bought a new stake in Udemy in the 1st quarter worth approximately $82,000. Institutional investors own 79.48% of the company's stock.

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.

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