Udemy, Inc. (NASDAQ:UDMY) Sees Significant Decrease in Short Interest

Udemy, Inc. (NASDAQ:UDMY) was the target of a large drop in short interest during the month of February. As of February 28th, there was short interest totalling 5,040,000 shares, a drop of 16.1% from the February 13th total of 6,010,000 shares. Based on an average daily volume of 1,010,000 shares, the short-interest ratio is currently 5.0 days. Currently, 6.4% of the shares of the company are short sold.

Insider Activity at Udemy

In other Udemy news, major shareholder Ltd Naspers sold 3,200,000 shares of the stock in a transaction dated Tuesday, January 21st. The shares were sold at an average price of $7.84, for a total value of $25,088,000.00. Following the transaction, the insider now directly owns 13,920,840 shares of the company’s stock, valued at $109,139,385.60. This represents a 18.69 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CTO Eren Bali sold 69,482 shares of the stock in a transaction dated Friday, February 14th. The shares were sold at an average price of $9.00, for a total transaction of $625,338.00. Following the completion of the transaction, the chief technology officer now directly owns 2,156,050 shares in the company, valued at approximately $19,404,450. This represents a 3.12 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 3,304,322 shares of company stock worth $26,033,418. Insiders own 3.20% of the company’s stock.

Institutional Trading of Udemy

A number of hedge funds have recently added to or reduced their stakes in UDMY. Point72 DIFC Ltd acquired a new stake in Udemy in the third quarter valued at approximately $30,000. SBI Securities Co. Ltd. acquired a new stake in Udemy in the fourth quarter valued at approximately $31,000. Quarry LP acquired a new stake in Udemy in the fourth quarter valued at approximately $34,000. Vega Investment Solutions acquired a new position in shares of Udemy during the fourth quarter worth $46,000. Finally, Nisa Investment Advisors LLC lifted its holdings in shares of Udemy by 496.7% during the fourth quarter. Nisa Investment Advisors LLC now owns 7,220 shares of the company’s stock worth $59,000 after purchasing an additional 6,010 shares during the period. Institutional investors and hedge funds own 79.48% of the company’s stock.

Udemy Price Performance

Shares of NASDAQ:UDMY opened at $8.42 on Wednesday. The company’s 50 day simple moving average is $8.56 and its 200 day simple moving average is $8.24. The stock has a market capitalization of $1.24 billion, a price-to-earnings ratio of -14.77 and a beta of 1.76. Udemy has a 1 year low of $6.67 and a 1 year high of $11.60.

Udemy (NASDAQ:UDMY) last issued its earnings results on Thursday, February 13th. The company reported ($0.03) earnings per share for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.10). Udemy had a negative net margin of 10.84% and a negative return on equity of 27.93%. The company had revenue of $199.94 million during the quarter, compared to analyst estimates of $194.70 million. As a group, analysts anticipate that Udemy will post -0.09 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several research analysts have weighed in on UDMY shares. William Blair cut shares of Udemy from an “outperform” rating to a “market perform” rating in a report on Wednesday, March 12th. Scotiabank assumed coverage on shares of Udemy in a report on Thursday, December 5th. They set a “sector outperform” rating and a $10.00 target price on the stock. Needham & Company LLC reaffirmed a “buy” rating and set a $11.00 target price on shares of Udemy in a report on Wednesday, March 12th. Morgan Stanley raised their target price on shares of Udemy from $7.50 to $9.00 and gave the stock an “underweight” rating in a report on Thursday, February 20th. Finally, Canaccord Genuity Group raised their target price on shares of Udemy from $12.00 to $14.00 and gave the stock a “buy” rating in a report on Friday, February 14th. One research analyst has rated the stock with a sell rating, three have assigned a hold rating and eight have issued a buy 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 $10.95.

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.