Udemy (NASDAQ:UDMY) Rating Lowered to “Buy” at Wall Street Zen

Udemy (NASDAQ:UDMY) was downgraded by stock analysts at Wall Street Zen from a “strong-buy” rating to a “buy” rating in a note issued to investors on Saturday.

UDMY has been the topic of a number of other research reports. Weiss Ratings restated a “sell (e+)” rating on shares of Udemy in a report on Wednesday, October 8th. Needham & Company LLC reissued a “buy” rating and set a $11.00 price objective on shares of Udemy in a research note on Thursday, October 30th. Zacks Research upgraded shares of Udemy from a “hold” rating to a “strong-buy” rating in a report on Thursday, October 30th. KeyCorp lowered their target price on shares of Udemy from $11.00 to $9.00 and set an “overweight” rating for the company in a report on Thursday, October 30th. Finally, Canaccord Genuity Group restated a “buy” rating and issued a $12.00 price target on shares of Udemy in a research note on Thursday, October 30th. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $9.67.

Udemy Stock Performance

Udemy stock opened at $5.07 on Friday. Udemy has a fifty-two week low of $4.86 and a fifty-two week high of $10.61. The stock’s 50 day simple moving average is $6.10 and its two-hundred day simple moving average is $6.72. The stock has a market cap of $741.41 million, a price-to-earnings ratio of -168.78 and a beta of 1.74.

Udemy (NASDAQ:UDMY) last announced its earnings results on Wednesday, October 29th. The company reported $0.13 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.10 by $0.03. Udemy had a positive return on equity of 2.11% and a negative net margin of 0.47%.The firm had revenue of $195.68 million during the quarter, compared to analyst estimates of $193.09 million. During the same quarter in the prior year, the company earned $0.07 EPS. The business’s 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. On average, analysts predict that Udemy will post -0.09 earnings per share for the current year.

Udemy announced that its board has approved a share buyback plan on Wednesday, September 10th that permits the company to buyback $50.00 million in outstanding shares. This buyback authorization permits the company to reacquire up to 5% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s leadership believes its stock is undervalued.

Insiders Place Their Bets

In related news, CFO Sarah Blanchard sold 25,000 shares of the company’s stock in a transaction that occurred on Monday, September 15th. The stock was sold at an average price of $7.08, for a total value of $177,000.00. Following the transaction, the chief financial officer directly owned 1,287,953 shares of the company’s stock, valued at approximately $9,118,707.24. This represents a 1.90% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 2.10% of the stock is currently owned by insiders.

Institutional Trading of Udemy

Institutional investors and hedge funds have recently modified their holdings of the business. Osaic Holdings Inc. bought a new position in shares of Udemy during the second quarter valued at $56,000. State of Alaska Department of Revenue bought a new position in Udemy during the 3rd quarter valued at about $56,000. New York State Teachers Retirement System purchased a new stake in shares of Udemy during the 2nd quarter valued at about $58,000. CIBC Bancorp USA Inc. bought a new stake in shares of Udemy in the third quarter worth approximately $73,000. Finally, Hsbc Holdings PLC purchased a new position in shares of Udemy during the first quarter valued at 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.