Udemy (NASDAQ:UDMY) Shares Gap Down – Here’s Why

Udemy, Inc. (NASDAQ:UDMY)’s share price gapped down before the market opened on Friday . The stock had previously closed at $8.18, but opened at $8.00. Udemy shares last traded at $7.99, with a volume of 107,484 shares.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the company. Morgan Stanley lowered Udemy from an “equal weight” rating to an “underweight” rating and reduced their price objective for the stock from $10.00 to $7.50 in a research note on Friday, September 27th. KeyCorp reduced their price target on shares of Udemy from $14.00 to $13.00 and set an “overweight” rating on the stock in a research report on Monday, July 22nd. Canaccord Genuity Group began coverage on shares of Udemy in a research report on Thursday, August 8th. They issued a “buy” rating and a $12.00 price objective for the company. Needham & Company LLC reaffirmed a “buy” rating and issued a $15.00 target price on shares of Udemy in a research note on Thursday, August 1st. Finally, Robert W. Baird decreased their price target on shares of Udemy from $13.00 to $11.00 and set an “outperform” rating on the stock in a research note on Thursday, August 1st. One research analyst has rated the stock with a sell rating, four have issued a hold rating, six have given a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $11.92.

Udemy Stock Performance

The stock has a market capitalization of $1.19 billion, a P/E ratio of -14.35 and a beta of 1.97. The business has a fifty day simple moving average of $7.93 and a 200-day simple moving average of $8.58.

Udemy (NASDAQ:UDMY) last issued its earnings results on Wednesday, July 31st. The company reported ($0.20) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.13) by ($0.07). Udemy had a negative return on equity of 26.62% and a negative net margin of 11.39%. The company had revenue of $194.36 million for the quarter, compared to the consensus estimate of $194.17 million. On average, sell-side analysts anticipate that Udemy, Inc. will post -0.52 earnings per share for the current year.

Insider Transactions at Udemy

In related news, CFO Sarah Blanchard sold 45,000 shares of Udemy stock in a transaction that occurred on Wednesday, August 21st. The stock was sold at an average price of $8.05, for a total transaction of $362,250.00. Following the transaction, the chief financial officer now owns 1,001,761 shares of the company’s stock, valued at $8,064,176.05. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 3.20% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Udemy

Several institutional investors and hedge funds have recently bought and sold shares of UDMY. Ariadne Wealth Management LP purchased a new position in Udemy during the 2nd quarter valued at about $67,000. Quest Partners LLC raised its stake in shares of Udemy by 6,957.5% during the second quarter. Quest Partners LLC now owns 8,963 shares of the company’s stock worth $77,000 after acquiring an additional 8,836 shares in the last quarter. Natixis lifted its stake in Udemy by 60.8% in the first quarter. Natixis now owns 8,967 shares of the company’s stock worth $99,000 after purchasing an additional 3,391 shares during the last quarter. XTX Topco Ltd purchased a new stake in Udemy during the 2nd quarter valued at about $93,000. Finally, Principal Financial Group Inc. grew its holdings in Udemy by 18.8% in the 1st quarter. Principal Financial Group Inc. now owns 12,053 shares of the company’s stock worth $132,000 after acquiring an additional 1,904 shares during the last quarter. 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.