Udemy (NASDAQ:UDMY) Shares Gap Up - Here's Why

Udemy, Inc. (NASDAQ:UDMY - Get Free Report) shares gapped up prior to trading on Wednesday . The stock had previously closed at $8.46, but opened at $8.95. Udemy shares last traded at $8.08, with a volume of 132,249 shares trading hands.

Analysts Set New Price Targets

UDMY has been the topic of a number of recent analyst reports. Canaccord Genuity Group started coverage on shares of Udemy in a report on Thursday, August 8th. They issued a "buy" rating and a $12.00 price target on the stock. Truist Financial lowered their target price on shares of Udemy from $15.00 to $10.00 and set a "buy" rating for the company in a research note on Friday, August 2nd. Needham & Company LLC decreased their price objective on Udemy from $15.00 to $11.00 and set a "buy" rating for the company in a report on Wednesday. KeyCorp dropped their target price on Udemy from $14.00 to $13.00 and set an "overweight" rating on the stock in a research note on Monday, July 22nd. Finally, Morgan Stanley cut Udemy from an "equal weight" rating to an "underweight" rating and decreased their price target for the company from $10.00 to $7.50 in a research note on Friday, September 27th. One research analyst has rated the stock with a sell rating, four have assigned a hold rating and seven have issued a buy rating to the company's stock. According to data from MarketBeat.com, Udemy has a consensus rating of "Moderate Buy" and an average target price of $11.00.

Udemy Stock Performance

The stock has a market cap of $1.23 billion, a PE ratio of -14.51 and a beta of 1.97. The company has a 50 day moving average of $7.96 and a two-hundred day moving average of $8.51.

Udemy (NASDAQ:UDMY - Get Free Report) last posted its quarterly earnings data on Wednesday, July 31st. The company reported ($0.20) EPS for the quarter, missing analysts' consensus estimates of ($0.13) by ($0.07). Udemy had a negative net margin of 11.39% and a negative return on equity of 26.62%. The business had revenue of $194.36 million during the quarter, compared to analysts' expectations of $194.17 million. As a group, equities research analysts anticipate that Udemy, Inc. will post -0.52 EPS for the current year.

Insider Buying and Selling

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

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Ariadne Wealth Management LP purchased a new stake in shares of Udemy during the second quarter worth $67,000. Quest Partners LLC grew its stake in Udemy by 6,957.5% during the 2nd quarter. Quest Partners LLC now owns 8,963 shares of the company's stock valued at $77,000 after acquiring an additional 8,836 shares in the last quarter. Natixis raised its holdings in Udemy by 60.8% in the 1st quarter. Natixis now owns 8,967 shares of the company's stock valued at $99,000 after acquiring an additional 3,391 shares during the last quarter. XTX Topco Ltd purchased a new position in Udemy in the 2nd quarter worth approximately $93,000. Finally, Principal Financial Group Inc. lifted its stake 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 purchasing an additional 1,904 shares in the last quarter. 79.48% of the stock is owned by institutional investors and hedge funds.

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.