Udemy (NASDAQ:UDMY) Shares Gap Down - Here's What Happened

Udemy, Inc. (NASDAQ:UDMY - Get Free Report)'s stock 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 traded.

Wall Street Analysts Forecast Growth

UDMY has been the topic of several recent research reports. Needham & Company LLC restated a "buy" rating and set a $11.00 price target on shares of Udemy in a report on Friday, January 17th. Cantor Fitzgerald cut their target price on shares of Udemy from $18.00 to $11.00 and set an "overweight" rating on the stock in a research note on Wednesday, October 30th. Scotiabank started coverage on shares of Udemy in a research note on Thursday, December 5th. They issued a "sector outperform" rating and a $10.00 price target for the company. Finally, Morgan Stanley lowered shares of Udemy from an "equal weight" rating to an "underweight" rating and cut their price target for the stock from $10.00 to $7.50 in a research note on Friday, September 27th. One investment analyst has rated the stock with a sell rating, four have given a hold rating and eight have issued a buy rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $10.92.

Udemy Trading Up 0.7 %

The stock's 50 day moving average price is $8.16 and its two-hundred day moving average price is $8.09. The firm has a market capitalization of $1.09 billion, a price-to-earnings ratio of -11.89 and a beta of 1.87.

Udemy (NASDAQ:UDMY - Get Free Report) last posted its quarterly earnings results on Tuesday, October 29th. The company reported $0.07 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 company had revenue of $195.42 million during the quarter, compared to the consensus estimate of $192.69 million. During the same period last year, the firm earned ($0.10) EPS. The company's revenue for the quarter was up 5.8% on a year-over-year basis. On average, sell-side analysts forecast that Udemy, Inc. will post -0.47 earnings per share for the current fiscal year.

Insider Transactions at Udemy

In other Udemy news, CEO Gregory Scott Brown sold 10,000 shares of the stock in a transaction on Tuesday, October 29th. The stock was sold at an average price of $8.50, for a total transaction of $85,000.00. Following the transaction, the chief executive officer now owns 1,203,727 shares of the company's stock, valued at $10,231,679.50. This represents a 0.82 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, major shareholder Ltd Naspers sold 3,200,000 shares of Udemy stock in a transaction on Tuesday, January 21st. The shares were 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 directly owns 13,920,840 shares of the company's stock, valued at approximately $109,139,385.60. This represents a 18.69 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 3,255,518 shares of company stock valued at $25,579,762 in the last ninety days. Corporate insiders own 3.20% of the company's stock.

Institutional Investors Weigh In On Udemy

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Point72 DIFC Ltd purchased a new stake in shares of Udemy during the 3rd quarter worth about $30,000. Nisa Investment Advisors LLC lifted its position in Udemy by 496.7% during the fourth quarter. Nisa Investment Advisors LLC now owns 7,220 shares of the company's stock valued at $59,000 after buying an additional 6,010 shares in the last quarter. Ariadne Wealth Management LP acquired a new stake in shares of Udemy in the second quarter worth $67,000. Victory Capital Management Inc. purchased a new position in shares of Udemy in the 3rd quarter valued at $75,000. Finally, Falcon Wealth Planning acquired a new position in shares of Udemy during the 4th quarter valued at $85,000. 79.48% of the stock is currently 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.

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