Coursera (NYSE:COUR) Trading 8.3% Higher After Better-Than-Expected Earnings

Coursera, Inc. (NYSE:COUR) shares were up 8.3% on Wednesday following a better than expected earnings announcement. The stock traded as high as $6.22 and last traded at $6.3350. Approximately 5,344,659 shares were traded during trading, a decline of 9% from the average daily volume of 5,869,623 shares. The stock had previously closed at $5.85.

The company reported $0.17 earnings per share for the quarter, topping the consensus estimate of $0.11 by $0.06. The business had revenue of $298.60 million for the quarter, compared to analyst estimates of $298.65 million. Coursera had a negative net margin of 15.39% and a negative return on equity of 2.08%. The firm’s quarterly revenue was up 59.6% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.12 EPS.

Coursera declared that its Board of Directors has approved a stock repurchase program on Monday, May 18th that allows the company to repurchase $500.00 million in outstanding shares. This repurchase authorization allows the company to repurchase up to 55.9% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s board of directors believes its shares are undervalued.

Key Headlines Impacting Coursera

Here are the key news stories impacting Coursera this week:

• Positive Sentiment: Coursera reported second-quarter adjusted earnings of $0.17 per share, above the $0.11 analyst consensus and up from $0.12 a year earlier. Revenue increased 59.6% year over year to $298.6 million, broadly in line with the $298.65 million consensus. Coursera Q2 earnings results
• Positive Sentiment: Management projected third-quarter revenue of $364 million to $372 million, compared with the $366.5 million consensus, and maintained full-year revenue guidance of approximately $1.2 billion. Coursera also expects about a 14% adjusted EBITDA margin in 2026 and at least $85 million in run-rate synergies by year-end. Coursera EBITDA margin and synergy outlook
• Positive Sentiment: Coursera invested $100 million in LearnVector, an artificial-intelligence startup led by its chairman Andrew Ng, receiving roughly a one-third stake. The deal could strengthen Coursera’s AI and reskilling offerings, although it also increases execution and investment risk. Coursera invests in LearnVector
• Neutral Sentiment: Zacks upgraded COUR to Rank #1, or “Strong Buy,” citing improving earnings prospects. However, this quantitative upgrade has been overshadowed by investor concerns about the quality and composition of reported growth. Zacks upgrades Coursera
• Negative Sentiment: The primary pressure on the stock is Coursera’s lower second-quarter core revenue, which prompted a sharp post-earnings selloff. The near-consensus total revenue figure and earnings beat were not enough to offset concerns about underlying growth momentum. Coursera slides on lower core revenue

Analysts Set New Price Targets

Several equities research analysts have weighed in on the stock. BMO Capital Markets restated an “outperform” rating on shares of Coursera in a research report on Thursday. Weiss Ratings raised Coursera from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Tuesday. JPMorgan Chase & Co. dropped their target price on Coursera from $10.00 to $8.00 and set an “overweight” rating for the company in a research report on Friday, April 24th. Needham & Company LLC reiterated a “buy” rating and issued a $10.00 price target on shares of Coursera in a report on Wednesday, June 24th. Finally, Bank of America dropped their price objective on Coursera from $8.00 to $7.00 and set a “neutral” rating for the company in a report on Tuesday, June 30th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $8.50.

Insider Buying and Selling at Coursera

In other news, major shareholder Insight Holdings Group, Llc sold 1,466,372 shares of the business’s stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $5.24, for a total value of $7,683,789.28. Following the completion of the transaction, the insider owned 419,784 shares of the company’s stock, valued at $2,199,668.16. The trade was a 77.74% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Alan B. Cardenas sold 9,139 shares of the company’s stock in a transaction on Monday, May 18th. The shares were sold at an average price of $5.52, for a total transaction of $50,447.28. Following the completion of the sale, the senior vice president owned 255,934 shares of the company’s stock, valued at approximately $1,412,755.68. This represents a 3.45% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 2,009,139 shares of company stock worth $10,643,180. Company insiders own 16.30% of the company’s stock.

Institutional Trading of Coursera

Several hedge funds have recently bought and sold shares of the stock. Baillie Gifford & Co. increased its position in shares of Coursera by 97.0% during the fourth quarter. Baillie Gifford & Co. now owns 14,590,942 shares of the company’s stock worth $107,389,000 after acquiring an additional 7,184,167 shares in the last quarter. Invenomic Capital Management LP increased its holdings in Coursera by 207.3% during the 4th quarter. Invenomic Capital Management LP now owns 906,224 shares of the company’s stock worth $6,670,000 after purchasing an additional 611,325 shares in the last quarter. Universal Beteiligungs und Servicegesellschaft mbH raised its stake in shares of Coursera by 58.2% in the 4th quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 1,084,567 shares of the company’s stock valued at $7,982,000 after purchasing an additional 398,920 shares during the period. Waterfront Wealth Inc. raised its stake in shares of Coursera by 98.0% in the 1st quarter. Waterfront Wealth Inc. now owns 364,339 shares of the company’s stock valued at $2,120,000 after purchasing an additional 180,374 shares during the period. Finally, OP Asset Management Ltd acquired a new stake in shares of Coursera in the 1st quarter valued at about $1,395,000. 89.55% of the stock is currently owned by institutional investors and hedge funds.

Coursera Stock Down 14.3%

The company has a market capitalization of $896.62 million, a P/E ratio of -7.90, a price-to-earnings-growth ratio of 2.49 and a beta of 1.23. The business has a fifty day moving average price of $5.55 and a 200 day moving average price of $5.85.

Coursera Company Profile

Coursera, Inc (NYSE:COUR) operates a leading online learning platform that delivers courses, specializations, professional certificates and fully accredited degree programs in collaboration with top universities and industry partners. Founded in 2012 by Stanford University professors Andrew Ng and Daphne Koller, Coursera’s mission is to provide universal access to world-class education and bridge skill gaps in a rapidly evolving job market.

The platform features more than 6,000 offerings created by over 275 academic institutions and corporate entities, spanning fields such as data science, business, technology, health care and the arts.