Udemy (NASDAQ:UDMY) Hits New 12-Month Low – Should You Sell?

Udemy, Inc. (NASDAQ:UDMY)’s stock price hit a new 52-week low during trading on Monday . The company traded as low as $5.00 and last traded at $5.0150, with a volume of 1065178 shares. The stock had previously closed at $5.18.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the stock. Cantor Fitzgerald boosted their target price on shares of Udemy from $9.00 to $10.00 and gave the stock an “overweight” rating in a report on Thursday, July 31st. Canaccord Genuity Group reissued a “buy” rating and set a $12.00 price objective on shares of Udemy in a research note on Thursday, October 30th. Wall Street Zen raised Udemy from a “buy” rating to a “strong-buy” rating in a research note on Saturday, August 2nd. Needham & Company LLC reiterated a “buy” rating and issued a $11.00 target price on shares of Udemy in a report on Thursday, October 30th. Finally, Weiss Ratings reissued a “sell (e+)” rating on shares of Udemy in a research report on Wednesday, October 8th. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $9.67.

Udemy Trading Down 5.0%

The company has a market capitalization of $720.17 million, a PE ratio of -163.95 and a beta of 1.74. The stock’s 50-day moving average is $6.52 and its two-hundred day moving average is $6.84.

Udemy (NASDAQ:UDMY) last released its earnings results on Wednesday, October 29th. The company reported $0.13 EPS for the quarter, beating analysts’ consensus estimates of $0.10 by $0.03. The firm had revenue of $195.68 million for the quarter, compared to analysts’ expectations of $193.09 million. Udemy had a positive return on equity of 2.11% and a negative net margin of 0.47%.The company’s quarterly revenue was up .1% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.07 earnings per share. Udemy has set its FY 2025 guidance at EPS. Q4 2025 guidance at EPS. On average, equities research analysts forecast that Udemy, Inc. will post -0.09 EPS for the current fiscal year.

Udemy declared that its board has initiated a share buyback plan on Wednesday, September 10th that allows the company to buyback $50.00 million in shares. This buyback authorization allows the company to buy up to 5% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling

In other Udemy news, CFO Sarah Blanchard sold 25,000 shares of the stock in a transaction on Monday, September 15th. The stock was sold at an average price of $7.08, for a total value of $177,000.00. Following the sale, the chief financial officer owned 1,287,953 shares in the company, valued at $9,118,707.24. This trade represents a 1.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 2.10% of the stock is owned by company insiders.

Institutional Trading of Udemy

Large investors have recently made changes to their positions in the stock. Westerly Capital Management LLC purchased a new position in Udemy in the 3rd quarter worth about $15,878,000. Assenagon Asset Management S.A. grew its stake in Udemy by 70.8% in the 3rd quarter. Assenagon Asset Management S.A. now owns 4,474,417 shares of the company’s stock worth $31,366,000 after acquiring an additional 1,854,550 shares in the last quarter. Vanguard Group Inc. increased its position in shares of Udemy by 12.2% during the first quarter. Vanguard Group Inc. now owns 10,663,298 shares of the company’s stock worth $82,747,000 after acquiring an additional 1,156,006 shares during the period. UBS Group AG increased its position in shares of Udemy by 56.8% during the third quarter. UBS Group AG now owns 1,786,371 shares of the company’s stock worth $12,522,000 after acquiring an additional 646,755 shares during the period. Finally, JPMorgan Chase & Co. raised its stake in shares of Udemy by 455.2% during the second quarter. JPMorgan Chase & Co. now owns 703,957 shares of the company’s stock valued at $4,949,000 after acquiring an additional 577,155 shares in the last quarter. 79.48% of the stock is owned by hedge funds and other institutional investors.

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.