Udemy (NASDAQ:UDMY) Hits New 12-Month Low – Should You Sell?

Shares of Udemy, Inc. (NASDAQ:UDMY) hit a new 52-week low during trading on Monday . The company traded as low as $5.00 and last traded at $5.0150, with a volume of 1065178 shares changing hands. The stock had previously closed at $5.18.

Wall Street Analyst Weigh In

Several research analysts have weighed in on UDMY shares. Needham & Company LLC reiterated a “buy” rating and issued a $11.00 price target on shares of Udemy 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. Cantor Fitzgerald lifted their target price on Udemy from $9.00 to $10.00 and gave the company an “overweight” rating in a research report on Thursday, July 31st. KeyCorp cut their price target on Udemy from $11.00 to $9.00 and set an “overweight” rating for the company in a report on Thursday, October 30th. Finally, Wall Street Zen upgraded Udemy from a “buy” rating to a “strong-buy” rating in a research report on Saturday, August 2nd. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $9.67.

Udemy Stock Performance

The firm’s fifty day moving average is $6.52 and its two-hundred day moving average is $6.84. The company has a market cap of $720.17 million, a P/E ratio of -163.95 and a beta of 1.74.

Udemy (NASDAQ:UDMY) last released its earnings results on Wednesday, October 29th. The company reported $0.13 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.10 by $0.03. The firm had revenue of $195.68 million during the quarter, compared to analysts’ expectations of $193.09 million. Udemy had a positive return on equity of 2.11% and a negative net margin of 0.47%.The firm’s revenue was up .1% on a year-over-year basis. During the same quarter last year, the business posted $0.07 earnings per share. Udemy has set its FY 2025 guidance at EPS. Q4 2025 guidance at EPS. On average, equities research analysts expect that Udemy, Inc. will post -0.09 EPS for the current year.

Udemy declared that its Board of Directors has authorized a share buyback program on Wednesday, September 10th that authorizes the company to buyback $50.00 million in shares. This buyback authorization authorizes the company to buy up to 5% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s board believes its shares are undervalued.

Insider Transactions at Udemy

In other Udemy news, CFO Sarah Blanchard sold 25,000 shares of the business’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 sale, the chief financial officer owned 1,287,953 shares in the company, valued at $9,118,707.24. The trade was a 1.90% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 2.10% of the company’s stock.

Institutional Investors Weigh In On Udemy

Several large investors have recently made changes to their positions in the company. Westerly Capital Management LLC purchased a new stake in shares of Udemy in the third quarter worth about $15,878,000. Sherbrooke Park Advisers LLC increased its stake in Udemy by 99.1% in the 3rd quarter. Sherbrooke Park Advisers LLC now owns 25,584 shares of the company’s stock worth $179,000 after acquiring an additional 12,736 shares during the last quarter. Qube Research & Technologies Ltd purchased a new stake in shares of Udemy during the 3rd quarter worth approximately $241,000. Prelude Capital Management LLC bought a new position in shares of Udemy during the 3rd quarter valued at approximately $79,000. Finally, Mercer Global Advisors Inc. ADV bought a new position in shares of Udemy during the 3rd quarter valued at approximately $164,000. 79.48% of the stock is owned by institutional investors.

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.