Udemy (NASDAQ:UDMY) Hits New 12-Month Low After Analyst Downgrade

Udemy, Inc. (NASDAQ:UDMY)’s stock price hit a new 52-week low during mid-day trading on Thursday after KeyCorp lowered their price target on the stock from $11.00 to $9.00. KeyCorp currently has an overweight rating on the stock. Udemy traded as low as $5.63 and last traded at $5.8450, with a volume of 876569 shares traded. The stock had previously closed at $6.38.

UDMY has been the subject of a number of other reports. Wall Street Zen upgraded Udemy from a “buy” rating to a “strong-buy” rating in a research note on Saturday, August 2nd. Weiss Ratings reiterated a “sell (e+)” rating on shares of Udemy in a research report on Wednesday, October 8th. Cantor Fitzgerald upped their price target on shares of Udemy from $9.00 to $10.00 and gave the stock an “overweight” rating in a research report on Thursday, July 31st. Zacks Research lowered Udemy from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, September 2nd. Finally, Needham & Company LLC reissued a “buy” rating and set a $11.00 price target on shares of Udemy in a report on Thursday. Six analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $9.67.

Insider Activity at Udemy

In other Udemy news, CFO Sarah Blanchard sold 25,000 shares of the stock in a transaction dated Monday, September 15th. The shares were sold at an average price of $7.08, for a total transaction of $177,000.00. Following the completion of the transaction, the chief financial officer owned 1,287,953 shares of the company’s stock, valued at $9,118,707.24. This represents a 1.90% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 2.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On Udemy

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. State of Alaska Department of Revenue bought a new position in Udemy during the third quarter valued at approximately $56,000. Osaic Holdings Inc. bought a new position in shares of Udemy during the 2nd quarter valued at approximately $56,000. New York State Teachers Retirement System bought a new position in shares of Udemy during the 2nd quarter valued at approximately $58,000. Prudential Financial Inc. bought a new position in shares of Udemy during the 2nd quarter valued at approximately $79,000. Finally, Hsbc Holdings PLC bought a new position in shares of Udemy during the 1st quarter valued at approximately $82,000. 79.48% of the stock is owned by institutional investors.

Udemy Price Performance

The company’s 50-day simple moving average is $6.86 and its 200 day simple moving average is $6.92. The firm has a market cap of $846.41 million, a P/E ratio of -187.60 and a beta of 1.76.

Udemy (NASDAQ:UDMY) last released its quarterly earnings data on Wednesday, October 29th. The company reported $0.13 EPS for the quarter, beating the consensus estimate of $0.10 by $0.03. Udemy had a negative net margin of 0.47% and a positive return on equity of 2.13%. The business had revenue of $195.68 million during the quarter, compared to analyst estimates of $193.09 million. During the same quarter last year, the business earned $0.07 earnings per share. Udemy’s quarterly revenue was up .1% compared to the same quarter last year. Udemy has set its FY 2025 guidance at EPS. Q4 2025 guidance at EPS. Analysts anticipate that Udemy, Inc. will post -0.09 EPS for the current fiscal year.

Udemy declared that its Board of Directors has approved a share buyback plan on Wednesday, September 10th that allows the company to repurchase $50.00 million in shares. This repurchase authorization allows the company to buy up to 5% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s management believes its shares are undervalued.

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.