Udemy (NASDAQ:UDMY) Shares Gap Down - Should You Sell?

Udemy, Inc. (NASDAQ:UDMY - Get Free Report) 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

A number of equities research analysts recently commented on UDMY shares. Scotiabank started coverage on Udemy in a report on Thursday, December 5th. They issued a "sector outperform" rating and a $10.00 price objective for the company. Cantor Fitzgerald dropped their price objective on Udemy from $18.00 to $11.00 and set an "overweight" rating for the company in a report on Wednesday, October 30th. Needham & Company LLC reiterated a "buy" rating and issued a $11.00 price objective on shares of Udemy in a report on Friday. Finally, Morgan Stanley downgraded 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 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. Based on data from MarketBeat.com, Udemy presently has an average rating of "Moderate Buy" and a consensus target price of $10.92.

Udemy Trading Down 7.5 %

The company has a 50 day moving average price of $8.20 and a 200 day moving average price of $8.09. The company has a market capitalization of $1.14 billion, a P/E ratio of -12.41 and a beta of 1.87.

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

Insider Activity at Udemy

In other Udemy news, CEO Gregory Scott Brown sold 10,000 shares of Udemy stock in a transaction on Tuesday, October 29th. The stock was sold at an average price of $8.50, for a total value of $85,000.00. Following the completion of the transaction, the chief executive officer now directly owns 1,203,727 shares of the company's stock, valued at $10,231,679.50. The trade was a 0.82 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CTO Eren Bali sold 35,518 shares of Udemy 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 directly owns 2,225,532 shares of the company's stock, valued at $20,029,788. This represents a 1.57 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 55,518 shares of company stock worth $491,762 in the last ninety days. 3.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On Udemy

A number of institutional investors have recently modified their holdings of the business. SG Americas Securities LLC raised its holdings in shares of Udemy by 22.2% during the 4th quarter. SG Americas Securities LLC now owns 29,674 shares of the company's stock worth $244,000 after buying an additional 5,384 shares in the last quarter. Nisa Investment Advisors LLC raised its holdings in shares of Udemy by 496.7% during the 4th quarter. Nisa Investment Advisors LLC now owns 7,220 shares of the company's stock worth $59,000 after buying an additional 6,010 shares in the last quarter. Mirador Capital Partners LP acquired a new position in shares of Udemy during the 4th quarter worth $148,000. JPMorgan Chase & Co. raised its holdings in shares of Udemy by 26.2% during the 3rd quarter. JPMorgan Chase & Co. now owns 198,387 shares of the company's stock worth $1,476,000 after buying an additional 41,145 shares in the last quarter. Finally, Barclays PLC raised its holdings in shares of Udemy by 360.6% during 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 in the last quarter. Institutional investors and hedge funds 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.