Wall Street Zen Downgrades Udemy (NASDAQ:UDMY) to Buy

Udemy (NASDAQ:UDMY) was downgraded by Wall Street Zen from a “strong-buy” rating to a “buy” rating in a report released on Saturday.

Several other analysts have also issued reports on the stock. Needham & Company LLC restated a “buy” rating and set a $11.00 target price on shares of Udemy in a research report on Thursday, October 30th. KeyCorp dropped their price target on shares of Udemy from $11.00 to $9.00 and set an “overweight” rating on the stock in a research note on Thursday, October 30th. Zacks Research raised shares of Udemy from a “hold” rating to a “strong-buy” rating in a research report on Thursday, October 30th. Weiss Ratings restated a “sell (e+)” rating on shares of Udemy in a research note on Wednesday, October 8th. Finally, Canaccord Genuity Group reiterated a “buy” rating and set a $12.00 target price on shares of Udemy in a research report on Thursday, October 30th. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Udemy currently has an average rating of “Moderate Buy” and a consensus price target of $9.67.

Udemy Stock Performance

UDMY 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 business’s 50-day moving average is $6.10 and its two-hundred day moving average is $6.72. The company 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 released its quarterly earnings results on Wednesday, October 29th. The company reported $0.13 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 business had revenue of $195.68 million during the quarter, compared to the consensus estimate of $193.09 million. During the same period in the previous year, the company posted $0.07 EPS. The business’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. Equities analysts predict that Udemy will post -0.09 earnings per share for the current year.

Udemy announced that its Board of Directors has approved a stock 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 repurchase up to 5% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling at Udemy

In related news, CFO Sarah Blanchard sold 25,000 shares of the company’s stock in a transaction 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 transaction, the chief financial officer 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 sale was disclosed in a filing with the SEC, which is accessible through this link. Company insiders own 2.10% of the company’s stock.

Institutional Investors Weigh In On Udemy

A number of institutional investors and hedge funds have recently bought and sold shares of UDMY. Westerly Capital Management LLC purchased a new position in shares of Udemy in the third quarter valued at about $15,878,000. Assenagon Asset Management S.A. raised its stake in Udemy by 70.8% during the 3rd quarter. Assenagon Asset Management S.A. now owns 4,474,417 shares of the company’s stock valued at $31,366,000 after purchasing an additional 1,854,550 shares during the period. Vanguard Group Inc. lifted its holdings in Udemy by 12.2% in the 1st quarter. Vanguard Group Inc. now owns 10,663,298 shares of the company’s stock worth $82,747,000 after purchasing an additional 1,156,006 shares in the last quarter. UBS Group AG boosted its stake in Udemy by 56.8% in the 3rd quarter. UBS Group AG now owns 1,786,371 shares of the company’s stock worth $12,522,000 after purchasing an additional 646,755 shares during the period. Finally, JPMorgan Chase & Co. grew its holdings in Udemy by 455.2% during the 2nd quarter. JPMorgan Chase & Co. now owns 703,957 shares of the company’s stock valued at $4,949,000 after buying an additional 577,155 shares in the last quarter. 79.48% of the stock is owned by 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.