Udemy (NASDAQ:UDMY) Trading Down 11.6% - Here's What Happened

Udemy, Inc. (NASDAQ:UDMY - Get Free Report) shares dropped 11.6% during mid-day trading on Monday . The stock traded as low as $5.84 and last traded at $5.88. Approximately 113,528 shares traded hands during mid-day trading, a decline of 88% from the average daily volume of 936,454 shares. The stock had previously closed at $6.65.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on UDMY. Truist Financial reissued a "hold" rating and set a $7.00 price objective (down from $10.00) on shares of Udemy in a research report on Monday, April 7th. Morgan Stanley increased their price objective on shares of Udemy from $7.50 to $9.00 and gave the company an "underweight" rating in a research report on Thursday, February 20th. William Blair cut shares of Udemy from an "outperform" rating to a "market perform" rating in a research report on Wednesday, March 12th. Needham & Company LLC reaffirmed a "buy" rating and set a $11.00 price target on shares of Udemy in a report on Wednesday, March 12th. Finally, Canaccord Genuity Group raised their target price on Udemy from $12.00 to $14.00 and gave the stock a "buy" rating in a research report on Friday, February 14th. One analyst has rated the stock with a sell rating, four have given a hold rating and seven have assigned a buy rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $10.68.

Udemy Stock Down 3.2 %

The business's fifty day moving average price is $8.35 and its 200 day moving average price is $8.15. The firm has a market capitalization of $905.76 million, a PE ratio of -10.70 and a beta of 1.81.

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

Insider Transactions at Udemy

In related news, CTO Eren Bali sold 10,000 shares of the company's stock in a transaction on Friday, March 14th. The stock was sold at an average price of $8.02, for a total transaction of $80,200.00. Following the transaction, the chief technology officer now owns 2,146,050 shares of the company's stock, valued at $17,211,321. This represents a 0.46 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, major shareholder Ltd Naspers sold 3,200,000 shares of the firm's 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 trade represents a 18.69 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 3,305,168 shares of company stock worth $26,040,186. Company insiders own 3.20% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in UDMY. Federated Hermes Inc. increased its stake in Udemy by 1,985.5% in the 4th quarter. Federated Hermes Inc. now owns 1,372,593 shares of the company's stock valued at $11,296,000 after purchasing an additional 1,306,778 shares in the last quarter. Millennium Management LLC purchased a new position in Udemy during the 4th quarter valued at about $5,911,000. Arrowstreet Capital Limited Partnership acquired a new position in Udemy during the fourth quarter worth about $4,119,000. Jacobs Levy Equity Management Inc. raised its position in shares of Udemy by 97.3% during the 4th quarter. Jacobs Levy Equity Management Inc. now owns 628,510 shares of the company's stock worth $5,173,000 after purchasing an additional 310,003 shares during the last quarter. Finally, Quantinno Capital Management LP purchased a new position in Udemy in the 4th quarter valued at about $2,350,000. 79.48% of the stock is owned by hedge funds and other institutional investors.

Udemy Company Profile

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.