Udemy (NASDAQ:UDMY) Trading Down 5.4% – Should You Sell?

Shares of Udemy, Inc. (NASDAQ:UDMY) were down 5.4% during trading on Friday . The company traded as low as $7.84 and last traded at $7.84. Approximately 234,303 shares were traded during trading, a decline of 73% from the average daily volume of 881,662 shares. The stock had previously closed at $8.29.

Analysts Set New Price Targets

A number of research firms recently weighed in on UDMY. Cantor Fitzgerald reduced their price objective on shares of Udemy from $18.00 to $11.00 and set an “overweight” rating for the company in a research note on Wednesday, October 30th. Scotiabank began coverage on Udemy in a research note on Thursday, December 5th. They set a “sector outperform” rating and a $10.00 price objective on the stock. Morgan Stanley lowered Udemy from an “equal weight” rating to an “underweight” rating and reduced their target price for the company from $10.00 to $7.50 in a report on Friday, September 27th. Finally, Needham & Company LLC lowered their price target on shares of Udemy from $15.00 to $11.00 and set a “buy” rating on the stock in a report on Wednesday, October 30th. One analyst has rated the stock with a sell rating, four have assigned a hold rating and eight have issued a buy rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $10.92.

Udemy Price Performance

The firm’s 50-day moving average is $8.11 and its 200-day moving average is $8.15.

Udemy (NASDAQ:UDMY) last posted its quarterly earnings data on Tuesday, October 29th. The company reported $0.07 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.01 by $0.06. The firm had revenue of $195.42 million during the quarter, compared to analysts’ expectations of $192.69 million. Udemy had a negative return on equity of 29.36% and a negative net margin of 12.33%. The company’s revenue for the quarter was up 5.8% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.10) EPS. As a group, analysts predict that Udemy, Inc. will post -0.47 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Gregory Scott Brown sold 10,000 shares of the stock in a transaction on Friday, December 6th. The shares were sold at an average price of $8.71, for a total transaction of $87,100.00. Following the transaction, the chief executive officer now owns 1,183,086 shares of the company’s stock, valued at approximately $10,304,679.06. This trade represents a 0.84 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CTO Eren Bali sold 35,518 shares of the business’s stock in a transaction on Wednesday, November 6th. The stock was sold at an average price of $9.00, for a total transaction of $319,662.00. Following the completion of the sale, the chief technology officer now directly owns 2,225,532 shares of the company’s stock, valued at $20,029,788. This represents a 1.57 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 55,518 shares of company stock valued at $491,762. 3.20% of the stock is currently owned by corporate insiders.

Institutional Trading of Udemy

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Sea Cliff Partners Management LP grew its holdings in shares of Udemy by 27.9% in the second quarter. Sea Cliff Partners Management LP now owns 3,725,865 shares of the company’s stock worth $32,154,000 after purchasing an additional 811,702 shares during the last quarter. Geode Capital Management LLC boosted its position in Udemy by 0.3% during the 3rd quarter. Geode Capital Management LLC now owns 2,216,868 shares of the company’s stock valued at $16,497,000 after buying an additional 5,972 shares during the period. State Street Corp grew its holdings in Udemy by 0.8% in the 3rd quarter. State Street Corp now owns 1,934,473 shares of the company’s stock worth $14,392,000 after acquiring an additional 15,339 shares during the last quarter. FMR LLC increased its position in shares of Udemy by 2.8% in the third quarter. FMR LLC now owns 1,330,073 shares of the company’s stock valued at $9,896,000 after acquiring an additional 36,380 shares during the period. Finally, Royce & Associates LP raised its stake in shares of Udemy by 1.1% during the third quarter. Royce & Associates LP now owns 944,059 shares of the company’s stock valued at $7,024,000 after acquiring an additional 10,650 shares during the last quarter. 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.