Udemy (NASDAQ:UDMY) Stock Price Down 4.4% Following Insider Selling

Udemy, Inc. (NASDAQ:UDMY)’s stock price dropped 4.4% on Wednesday following insider selling activity. The stock traded as low as $7.46 and last traded at $7.48. Approximately 421,268 shares were traded during mid-day trading, a decline of 35% from the average daily volume of 649,887 shares. The stock had previously closed at $7.82.

Specifically, major shareholder Ltd Naspers sold 3,200,000 shares of the company’s stock in a transaction dated 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 transaction, the insider now directly owns 13,920,840 shares in the company, valued at $109,139,385.60. This represents a 18.69 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink.

Analyst Upgrades and Downgrades

A number of research analysts have commented on UDMY shares. Needham & Company LLC reissued a “buy” rating and set a $11.00 target price on shares of Udemy in a research report on Friday, January 17th. Scotiabank began coverage on shares of Udemy in a research note on Thursday, December 5th. They set a “sector outperform” rating and a $10.00 price objective for the company. Morgan Stanley cut shares of Udemy from an “equal weight” rating to an “underweight” rating and dropped their price objective for the stock from $10.00 to $7.50 in a research note on Friday, September 27th. Finally, Cantor Fitzgerald dropped their target price on shares of Udemy from $18.00 to $11.00 and set an “overweight” rating on the stock in a research report on Wednesday, October 30th. One analyst has rated the stock with a sell rating, four have given a hold rating and eight have assigned a buy rating to the stock. According to MarketBeat.com, Udemy currently has a consensus rating of “Moderate Buy” and a consensus target price of $10.92.

Udemy Price Performance

The company’s 50 day simple moving average is $8.14 and its two-hundred day simple moving average is $8.07. The company has a market cap of $1.10 billion, a PE ratio of -11.97 and a beta of 1.87.

Udemy (NASDAQ:UDMY) last posted its quarterly earnings results on Tuesday, October 29th. The company reported $0.07 EPS for the quarter, topping the consensus estimate 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 business had revenue of $195.42 million during the quarter, compared to the consensus estimate of $192.69 million. During the same quarter in the previous year, the firm posted ($0.10) earnings per share. The company’s quarterly revenue was up 5.8% compared to the same quarter last year. Sell-side analysts expect that Udemy, Inc. will post -0.47 EPS for the current fiscal year.

Institutional Investors Weigh In On Udemy

Institutional investors have recently modified their holdings of the company. Sea Cliff Partners Management LP raised its stake in Udemy by 27.9% during the 2nd quarter. Sea Cliff Partners Management LP now owns 3,725,865 shares of the company’s stock worth $32,154,000 after acquiring an additional 811,702 shares in the last quarter. Geode Capital Management LLC increased its position in Udemy by 0.3% during the 3rd quarter. Geode Capital Management LLC now owns 2,216,868 shares of the company’s stock worth $16,497,000 after purchasing an additional 5,972 shares during the period. State Street Corp grew its holdings in Udemy by 0.8% during the third quarter. State Street Corp now owns 1,934,473 shares of the company’s stock worth $14,392,000 after acquiring an additional 15,339 shares during the period. FMR LLC increased its holdings in shares of Udemy by 2.8% in the 3rd quarter. FMR LLC now owns 1,330,073 shares of the company’s stock valued at $9,896,000 after purchasing an additional 36,380 shares in the last quarter. Finally, Royce & Associates LP increased its holdings in Udemy by 1.1% in the third quarter. Royce & Associates LP now owns 944,059 shares of the company’s stock valued at $7,024,000 after buying an additional 10,650 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.