Udemy (NASDAQ:UDMY) Stock Price Down 6.3% - Here's Why

Udemy, Inc. (NASDAQ:UDMY - Get Free Report) shares traded down 6.3% during mid-day trading on Wednesday . The company traded as low as $8.77 and last traded at $8.58. 361,899 shares were traded during mid-day trading, a decline of 59% from the average session volume of 884,215 shares. The stock had previously closed at $9.16.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the company. Morgan Stanley upped their price objective on Udemy from $7.50 to $9.00 and gave the stock an "underweight" rating in a report on Thursday, February 20th. Canaccord Genuity Group boosted their target price on Udemy from $12.00 to $14.00 and gave the company a "buy" rating in a research note on Friday, February 14th. Scotiabank initiated coverage on Udemy in a research note on Thursday, December 5th. They issued a "sector outperform" rating and a $10.00 target price for the company. Needham & Company LLC reissued a "buy" rating and issued a $11.00 target price on shares of Udemy in a research note on Wednesday. Finally, William Blair lowered Udemy from an "outperform" rating to a "market perform" rating in a research note on Wednesday. One investment analyst has rated the stock with a sell rating, three have given a hold rating and eight have given a buy rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $10.95.

Udemy Stock Performance

The business has a 50-day simple moving average of $8.57 and a 200 day simple moving average of $8.23. The firm has a market cap of $1.21 billion, a P/E ratio of -14.39 and a beta of 1.76.

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Udemy (NASDAQ:UDMY - Get Free Report) last announced its earnings results on Thursday, February 13th. The company reported ($0.03) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.07 by ($0.10). Udemy had a negative return on equity of 27.93% and a negative net margin of 10.84%. The firm had revenue of $199.94 million during the quarter, compared to the consensus estimate of $194.70 million. On average, research analysts expect that Udemy, Inc. will post -0.09 EPS for the current year.

Insider Transactions at Udemy

In related news, CTO Eren Bali sold 69,482 shares of the company's stock in a transaction that occurred on Friday, February 14th. The stock was sold at an average price of $9.00, for a total value of $625,338.00. Following the sale, the chief technology officer now owns 2,156,050 shares in the company, valued at $19,404,450. This represents a 3.12 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, major shareholder Ltd Naspers sold 3,200,000 shares of the company's stock in a transaction that occurred on Tuesday, January 21st. The stock was sold at an average price of $7.84, for a total value of $25,088,000.00. Following the completion of the sale, the insider now owns 13,920,840 shares in the company, valued at $109,139,385.60. The trade was a 18.69 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 3,294,322 shares of company stock valued at $25,953,218. Corporate insiders own 3.20% of the company's stock.

Institutional Trading of Udemy

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Barclays PLC grew its stake in shares of Udemy by 360.6% in the 3rd quarter. Barclays PLC now owns 155,719 shares of the company's stock worth $1,158,000 after buying an additional 121,911 shares during the last quarter. Verition Fund Management LLC purchased a new stake in shares of Udemy in the 3rd quarter worth approximately $1,630,000. SBI Securities Co. Ltd. purchased a new stake in Udemy during the 4th quarter valued at $31,000. Algert Global LLC boosted its stake in Udemy by 45.0% during the 3rd quarter. Algert Global LLC now owns 346,062 shares of the company's stock valued at $2,575,000 after purchasing an additional 107,390 shares during the last quarter. Finally, JPMorgan Chase & Co. boosted its stake in Udemy by 26.2% during the 3rd quarter. JPMorgan Chase & Co. now owns 198,387 shares of the company's stock valued at $1,476,000 after purchasing an additional 41,145 shares during the last quarter. Hedge funds and other institutional investors own 79.48% of the company's stock.

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.