Udemy (NASDAQ:UDMY) Shares Down 3.6% – Time to Sell?

Udemy, Inc. (NASDAQ:UDMY) shares were down 3.6% on Friday . The company traded as low as $6.15 and last traded at $6.0730. Approximately 316,380 shares were traded during mid-day trading, a decline of 81% from the average daily volume of 1,647,685 shares. The stock had previously closed at $6.30.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the stock. Wall Street Zen upgraded shares of Udemy from a “buy” rating to a “strong-buy” rating in a report on Sunday, December 7th. KeyCorp reaffirmed an “overweight” rating on shares of Udemy in a research report on Thursday, December 11th. Zacks Research downgraded Udemy from a “strong-buy” rating to a “hold” rating in a report on Friday, November 28th. Needham & Company LLC reissued a “buy” rating and issued a $11.00 target price on shares of Udemy in a research note on Thursday, October 30th. Finally, Canaccord Genuity Group downgraded Udemy from a “buy” rating to a “hold” rating and reduced their price target for the company from $12.00 to $7.00 in a report on Wednesday. Four research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Udemy presently has a consensus rating of “Hold” and an average target price of $9.00.

Udemy Stock Performance

The stock has a fifty day simple moving average of $5.68 and a 200 day simple moving average of $6.56. The firm has a market cap of $876.08 million, a P/E ratio of -199.43 and a beta of 1.74.

Udemy (NASDAQ:UDMY) last released its quarterly earnings data on Wednesday, October 29th. The company reported $0.13 EPS for the quarter, beating the consensus estimate of $0.10 by $0.03. Udemy had a positive return on equity of 2.11% and a negative net margin of 0.47%.The company had revenue of $195.68 million for the quarter, compared to analysts’ expectations of $193.09 million. During the same period last year, the firm posted $0.07 earnings per share. Udemy’s revenue was up .1% compared to the same quarter last year. Research analysts predict that Udemy, Inc. will post -0.09 earnings per share for the current year.

Udemy announced that its Board of Directors has initiated a stock buyback program on Wednesday, September 10th that authorizes the company to repurchase $50.00 million in outstanding shares. This repurchase authorization authorizes the company to buy up to 5% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s management believes its stock is undervalued.

Insiders Place Their Bets

In other news, CFO Sarah Blanchard sold 25,000 shares of the stock in a transaction on Monday, December 15th. The stock was sold at an average price of $5.25, for a total transaction of $131,250.00. Following the transaction, the chief financial officer directly owned 1,208,046 shares of the company’s stock, valued at $6,342,241.50. This represents a 2.03% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Corporate insiders own 2.10% of the company’s stock.

Institutional Trading of Udemy

A number of hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. boosted its position in Udemy by 3.8% in the third quarter. Vanguard Group Inc. now owns 11,895,585 shares of the company’s stock worth $83,388,000 after purchasing an additional 436,984 shares during the last quarter. Assenagon Asset Management S.A. lifted its stake in shares of Udemy by 70.8% in the 3rd quarter. Assenagon Asset Management S.A. now owns 4,474,417 shares of the company’s stock worth $31,366,000 after purchasing an additional 1,854,550 shares during the period. Geode Capital Management LLC boosted its holdings in shares of Udemy by 3.7% in the second quarter. Geode Capital Management LLC now owns 2,313,651 shares of the company’s stock worth $16,267,000 after buying an additional 81,599 shares during the last quarter. Westerly Capital Management LLC bought a new stake in Udemy during the third quarter valued at approximately $15,878,000. Finally, UBS Group AG grew its position in Udemy by 56.8% during the third quarter. UBS Group AG now owns 1,786,371 shares of the company’s stock valued at $12,522,000 after buying an additional 646,755 shares during the period. Hedge funds and other institutional investors own 79.48% of the company’s stock.

Udemy Company Profile

Udemy, Inc (NASDAQ: UDMY) operates a leading online learning marketplace that connects learners and instructors across a wide range of subject areas. The company’s platform hosts thousands of self-paced video courses covering technology, business, personal development, creative arts and more. Individual learners can purchase courses on demand, while instructors receive revenue share for teaching content to a global audience.

In addition to its consumer-facing marketplace, Udemy provides enterprise learning solutions under the Udemy for Business brand.