Udemy (NASDAQ:UDMY) Hits New 1-Year Low Following Analyst Downgrade

Udemy, Inc. (NASDAQ:UDMY)’s share price hit a new 52-week low during mid-day trading on Thursday after Bank of America downgraded the stock from a buy rating to a neutral rating. Bank of America now has a $8.50 price target on the stock. Udemy traded as low as $6.92 and last traded at $7.74, with a volume of 542067 shares. The stock had previously closed at $9.24.

Several other brokerages have also recently weighed in on UDMY. Robert W. Baird decreased their price target on Udemy from $13.00 to $11.00 and set an “outperform” rating for the company in a research note on Thursday. Needham & Company LLC restated a “buy” rating and issued a $15.00 target price on shares of Udemy in a research note on Friday, May 3rd. Jefferies Financial Group lowered their price objective on shares of Udemy from $14.00 to $11.00 and set a “hold” rating on the stock in a report on Monday, April 29th. KeyCorp dropped their target price on Udemy from $14.00 to $13.00 and set an “overweight” rating on the stock in a report on Monday, July 22nd. Finally, Morgan Stanley dropped their price target on shares of Udemy from $15.00 to $13.00 and set an “equal weight” rating on the stock in a research report on Friday, April 19th. Five analysts have rated the stock with a hold rating and five have given a buy rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $13.15.

Insiders Place Their Bets

In related news, CTO Venu Venugopal sold 7,086 shares of the company’s stock in a transaction that occurred on Friday, May 17th. The stock was sold at an average price of $9.89, for a total value of $70,080.54. Following the transaction, the chief technology officer now owns 429,927 shares in the company, valued at $4,251,978.03. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. In related news, CTO Venu Venugopal sold 7,086 shares of Udemy stock in a transaction dated Friday, May 17th. The stock was sold at an average price of $9.89, for a total value of $70,080.54. Following the completion of the sale, the chief technology officer now owns 429,927 shares of the company’s stock, valued at approximately $4,251,978.03. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Gregory Scott Brown sold 10,000 shares of the company’s stock in a transaction dated Friday, June 28th. The shares were sold at an average price of $8.50, for a total transaction of $85,000.00. Following the sale, the chief executive officer now directly owns 1,273,406 shares in the company, valued at $10,823,951. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 79,486 shares of company stock valued at $740,941. Company insiders own 3.20% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of UDMY. Daiwa Securities Group Inc. lifted its position in shares of Udemy by 261.1% during the fourth quarter. Daiwa Securities Group Inc. now owns 4,730 shares of the company’s stock worth $70,000 after acquiring an additional 3,420 shares in the last quarter. RIA Advisory Group LLC bought a new stake in shares of Udemy during the 4th quarter valued at $76,000. Natixis raised its stake in shares of Udemy by 60.8% during the 1st quarter. Natixis now owns 8,967 shares of the company’s stock valued at $99,000 after purchasing an additional 3,391 shares during the period. Principal Financial Group Inc. lifted its holdings in Udemy by 18.8% during the 1st quarter. Principal Financial Group Inc. now owns 12,053 shares of the company’s stock worth $132,000 after purchasing an additional 1,904 shares in the last quarter. Finally, ProShare Advisors LLC boosted its stake in Udemy by 10.7% in the 1st quarter. ProShare Advisors LLC now owns 16,109 shares of the company’s stock worth $177,000 after purchasing an additional 1,553 shares during the period. 79.48% of the stock is owned by institutional investors.

Udemy Trading Down 16.9 %

The stock has a fifty day simple moving average of $8.57 and a two-hundred day simple moving average of $10.39. The firm has a market cap of $1.18 billion, a PE ratio of -14.49 and a beta of 2.00.

Udemy (NASDAQ:UDMY) last released its quarterly earnings data on Thursday, May 2nd. The company reported ($0.11) EPS for the quarter, beating analysts’ consensus estimates of ($0.13) by $0.02. The company had revenue of $196.85 million during the quarter, compared to analyst estimates of $194.83 million. Udemy had a negative net margin of 10.82% and a negative return on equity of 23.10%. As a group, sell-side analysts predict that Udemy, Inc. will post -0.45 earnings per share for the current fiscal year.

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.