Udemy (NASDAQ:UDMY) Shares Gap Down – Time to Sell?

Udemy, Inc. (NASDAQ:UDMY) shares gapped down prior to trading on Tuesday . The stock had previously closed at $8.45, but opened at $7.91. Udemy shares last traded at $7.85, with a volume of 322,620 shares traded.

Analyst Ratings Changes

A number of research firms recently commented on UDMY. Cantor Fitzgerald dropped their price target 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. Morgan Stanley lowered shares of Udemy from an “equal weight” rating to an “underweight” rating and lowered their target price for the company from $10.00 to $7.50 in a research note on Friday, September 27th. Needham & Company LLC reiterated a “buy” rating and set a $11.00 price objective on shares of Udemy in a report on Friday, January 17th. Finally, Scotiabank initiated coverage on Udemy in a report on Thursday, December 5th. They issued a “sector outperform” rating and a $10.00 price target for the company. One research analyst has rated the stock with a sell rating, four have issued a hold rating and eight have assigned a buy rating to the stock. According to data from MarketBeat.com, Udemy presently has an average rating of “Moderate Buy” and a consensus target price of $10.92.

Udemy Stock Performance

The business’s fifty day moving average price is $8.16 and its two-hundred day moving average price is $8.09. The firm has a market capitalization of $1.09 billion, a P/E ratio of -11.89 and a beta of 1.87.

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

Insider Activity at Udemy

In other Udemy news, major shareholder Ltd Naspers sold 3,200,000 shares of Udemy stock in a transaction that occurred on Tuesday, January 21st. The shares were sold at an average price of $7.84, for a total transaction of $25,088,000.00. Following the completion of the sale, the insider now directly owns 13,920,840 shares in the company, valued at approximately $109,139,385.60. The trade was a 18.69 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CEO Gregory Scott Brown sold 10,000 shares of the stock in a transaction on Tuesday, October 29th. The stock was sold at an average price of $8.50, for a total transaction of $85,000.00. Following the completion of the sale, the chief executive officer now owns 1,203,727 shares in the company, valued at $10,231,679.50. The trade was a 0.82 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 3,255,518 shares of company stock valued at $25,579,762 in the last ninety days. Corporate insiders own 3.20% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Point72 DIFC Ltd purchased a new stake in Udemy during the 3rd quarter worth approximately $30,000. Nisa Investment Advisors LLC raised its stake in Udemy by 496.7% in the 4th quarter. Nisa Investment Advisors LLC now owns 7,220 shares of the company’s stock valued at $59,000 after purchasing an additional 6,010 shares during the last quarter. Ariadne Wealth Management LP purchased a new position in Udemy in the 2nd quarter valued at $67,000. Victory Capital Management Inc. acquired a new stake in Udemy during the 3rd quarter worth $75,000. Finally, Falcon Wealth Planning acquired a new stake in shares of Udemy in the fourth quarter valued at about $85,000. Institutional investors and hedge funds own 79.48% of the company’s stock.

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.