Morgan Stanley Downgrades Udemy (NASDAQ:UDMY) to Underweight

Udemy (NASDAQ:UDMY) was downgraded by equities research analysts at Morgan Stanley from an “equal weight” rating to an “underweight” rating in a note issued to investors on Friday, FinViz reports. They currently have a $7.50 price objective on the stock, down from their previous price objective of $10.00. Morgan Stanley’s target price suggests a potential downside of 7.75% from the company’s current price.

Other analysts have also issued research reports about the company. Needham & Company LLC reiterated a “buy” rating and set a $15.00 price objective on shares of Udemy in a report on Thursday, August 1st. Truist Financial dropped their price target on Udemy from $15.00 to $10.00 and set a “buy” rating on the stock in a research note on Friday, August 2nd. Robert W. Baird decreased their price objective on shares of Udemy from $13.00 to $11.00 and set an “outperform” rating for the company in a research report on Thursday, August 1st. Canaccord Genuity Group started coverage on shares of Udemy in a research report on Thursday, August 8th. They set a “buy” rating and a $12.00 target price on the stock. Finally, Canaccord Genuity Group started coverage on shares of Udemy in a report on Thursday, August 8th. They issued a “buy” rating and a $12.00 price target for the company. One research analyst has rated the stock with a sell rating, four have issued a hold rating, six have given a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $11.92.

Udemy Trading Up 1.2 %

Shares of Udemy stock opened at $8.13 on Friday. Udemy has a 12 month low of $6.67 and a 12 month high of $16.01. The stock’s fifty day moving average price is $7.99 and its 200-day moving average price is $9.03. The firm has a market cap of $1.22 billion, a P/E ratio of -15.34 and a beta of 1.99.

Udemy (NASDAQ:UDMY) last posted its earnings results on Wednesday, July 31st. The company reported ($0.20) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.13) by ($0.07). Udemy had a negative net margin of 11.39% and a negative return on equity of 26.62%. The company had revenue of $194.36 million during the quarter, compared to analysts’ expectations of $194.17 million. Analysts forecast that Udemy will post -0.52 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Eren Bali sold 15,000 shares of the company’s stock in a transaction dated Friday, July 26th. The stock was sold at an average price of $9.10, for a total value of $136,500.00. Following the sale, the director now owns 1,639,477 shares in the company, valued at $14,919,240.70. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. In other news, Director Eren Bali sold 15,000 shares of Udemy stock in a transaction that occurred on Friday, July 26th. The shares were sold at an average price of $9.10, for a total transaction of $136,500.00. Following the completion of the transaction, the director now directly owns 1,639,477 shares of the company’s stock, valued at approximately $14,919,240.70. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CFO Sarah Blanchard sold 45,000 shares of the company’s stock in a transaction dated Wednesday, August 21st. The stock was sold at an average price of $8.05, for a total transaction of $362,250.00. Following the completion of the transaction, the chief financial officer now owns 1,001,761 shares of the company’s stock, valued at approximately $8,064,176.05. The disclosure for this sale can be found here. In the last three months, insiders have sold 62,000 shares of company stock valued at $514,430. Company insiders own 3.20% of the company’s stock.

Hedge Funds Weigh In On Udemy

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Sea Cliff Partners Management LP acquired a new position in shares of Udemy during the 4th quarter worth about $25,661,000. Silvercrest Asset Management Group LLC acquired a new position in shares of Udemy during the first quarter valued at approximately $8,109,000. Invenomic Capital Management LP lifted its position in shares of Udemy by 22.9% in the first quarter. Invenomic Capital Management LP now owns 2,747,453 shares of the company’s stock valued at $30,167,000 after acquiring an additional 512,618 shares in the last quarter. Vanguard Group Inc. boosted its stake in shares of Udemy by 5.6% in the fourth quarter. Vanguard Group Inc. now owns 9,355,870 shares of the company’s stock worth $137,812,000 after acquiring an additional 495,380 shares during the last quarter. Finally, Industry Ventures L.L.C. purchased a new stake in shares of Udemy during the second quarter worth approximately $3,452,000. 79.48% of the stock is owned by hedge funds and other institutional investors.

Udemy Company Profile

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.