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

Udemy, Inc. (NASDAQ:UDMY)’s share price gapped down prior to trading on Tuesday . The stock had previously closed at $8.45, but opened at $7.91. Udemy shares last traded at $7.85, with a volume of 322,620 shares changing hands.

Analyst Ratings Changes

Several brokerages have weighed in on UDMY. Morgan Stanley lowered shares of Udemy from an “equal weight” rating to an “underweight” rating and lowered their target price for the stock from $10.00 to $7.50 in a research report on Friday, September 27th. Needham & Company LLC restated a “buy” rating and set a $11.00 target price on shares of Udemy in a report on Friday. Scotiabank initiated coverage on shares of Udemy in a report on Thursday, December 5th. They issued a “sector outperform” rating and a $10.00 price target on the stock. Finally, Cantor Fitzgerald reduced their target price on Udemy from $18.00 to $11.00 and set an “overweight” rating on the stock in a research note on Wednesday, October 30th. One equities research analyst has rated the stock with a sell rating, four have given a hold rating and eight have assigned a buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $10.92.

Udemy Price Performance

The stock has a market cap of $1.15 billion, a PE ratio of -12.52 and a beta of 1.87. The business has a 50 day simple moving average of $8.20 and a 200 day simple moving average of $8.09.

Udemy (NASDAQ:UDMY) last posted its quarterly earnings data on Tuesday, October 29th. The company reported $0.07 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.01 by $0.06. Udemy had a negative net margin of 12.33% and a negative return on equity of 29.36%. The business had revenue of $195.42 million during the quarter, compared to the consensus estimate of $192.69 million. During the same period in the prior year, the firm earned ($0.10) EPS. Udemy’s quarterly revenue was up 5.8% compared to the same quarter last year. As a group, sell-side analysts forecast that Udemy, Inc. will post -0.47 earnings per share for the current fiscal year.

Insider Activity

In other news, CTO Eren Bali sold 35,518 shares of the business’s stock in a transaction on Wednesday, November 6th. The shares were sold at an average price of $9.00, for a total value of $319,662.00. Following the completion of the transaction, the chief technology officer now owns 2,225,532 shares of the company’s stock, valued at $20,029,788. The trade was a 1.57 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Gregory Scott Brown sold 10,000 shares of the company’s stock in a transaction dated Tuesday, October 29th. The stock was sold at an average price of $8.50, for a total value of $85,000.00. Following the transaction, the chief executive officer now directly owns 1,203,727 shares of the company’s stock, valued at $10,231,679.50. This represents a 0.82 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 55,518 shares of company stock worth $491,762. Corporate insiders own 3.20% of the company’s stock.

Institutional Investors Weigh In On Udemy

Large investors have recently made changes to their positions in the stock. Rhumbline Advisers lifted its position in shares of Udemy by 9.7% during the 2nd quarter. Rhumbline Advisers now owns 131,847 shares of the company’s stock worth $1,138,000 after buying an additional 11,699 shares during the last quarter. Dimensional Fund Advisors LP increased its position in shares of Udemy by 278.0% during the second quarter. Dimensional Fund Advisors LP now owns 86,005 shares of the company’s stock valued at $741,000 after buying an additional 63,251 shares during the period. Renaissance Technologies LLC bought a new position in Udemy in the 2nd quarter valued at $133,000. XTX Topco Ltd bought a new position in shares of Udemy in the second quarter worth $93,000. Finally, ProShare Advisors LLC raised its position in shares of Udemy by 49.1% in the second quarter. ProShare Advisors LLC now owns 24,018 shares of the company’s stock worth $207,000 after buying an additional 7,909 shares in the last quarter. Institutional investors and hedge funds own 79.48% of the company’s stock.

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.