The stock price of Udemy Inc (NASDAQ: UDMY) has jumped by 4.66 compared to previous close of 7.94. Despite this, the company has seen a gain of 5.59% in its stock price over the last five trading days. seekingalpha.com reported 2024-08-09 that Shares have fallen nearly 25% after Q2 earnings, where management lowered its full-year revenue guidance by $21 million. Margin guidance for this year remains unchanged, with management anticipating substantial margin improvements in the mid-term and aiming to achieve an adjusted EBITDA margin of 20% in 2027. Though I see limited downside given the company’s large net cash position and its expectation to reach profitability this year, the outlook for growth remains weak.
Is It Worth Investing in Udemy Inc (NASDAQ: UDMY) Right Now?
UDMY has 36-month beta value of 1.99. Analysts have mixed views on the stock, with 6 analysts rating it as a “buy,” 4 as “overweight,” 4 as “hold,” and 0 as “sell.”
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The public float for UDMY is 77.94M, and currently, short sellers hold a 10.63% ratio of that float. The average trading volume of UDMY on September 20, 2024 was 972.42K shares.
UDMY’s Market Performance
The stock of Udemy Inc (UDMY) has seen a 5.59% increase in the past week, with a 5.86% rise in the past month, and a 4.01% gain in the past quarter. The volatility ratio for the week is 3.14%, and the volatility levels for the past 30 days are at 3.56% for UDMY. The simple moving average for the last 20 days is 3.53% for UDMY’s stock, with a simple moving average of -21.19% for the last 200 days.
Analysts’ Opinion of UDMY
Many brokerage firms have already submitted their reports for UDMY stocks, with Canaccord Genuity repeating the rating for UDMY by listing it as a “Buy.” The predicted price for UDMY in the upcoming period, according to Canaccord Genuity is $12 based on the research report published on August 08, 2024 of the current year 2024.
BofA Securities, on the other hand, stated in their research note that they expect to see UDMY reach a price target of $8.50. The rating they have provided for UDMY stocks is “Neutral” according to the report published on August 01st, 2024.
BofA Securities gave a rating of “Buy” to UDMY, setting the target price at $13 in the report published on October 19th of the previous year.
UDMY Trading at 3.43% from the 50-Day Moving Average
After a stumble in the market that brought UDMY to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -48.09% of loss for the given period.
Volatility was left at 3.56%, however, over the last 30 days, the volatility rate increased by 3.14%, as shares surge +0.85% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +2.34% upper at present.
During the last 5 trading sessions, UDMY rose by +5.59%, which changed the moving average for the period of 200-days by -43.85% in comparison to the 20-day moving average, which settled at $8.03. In addition, Udemy Inc saw -43.58% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at UDMY starting from VELAYUDHAN PILLAI VENUGOPAL, who proposed sale 20,027 shares at the price of $8.16 back on Sep 05 ’24. After this action, VELAYUDHAN PILLAI VENUGOPAL now owns shares of Udemy Inc, valued at $163,479 using the latest closing price.
VELAYUDHAN PILLAI VENUGOPAL, the Officer of Udemy Inc, proposed sale 28,207 shares at $8.38 during a trade that took place back on Aug 30 ’24, which means that VELAYUDHAN PILLAI VENUGOPAL is holding shares at $236,304 based on the most recent closing price.
Stock Fundamentals for UDMY
Current profitability levels for the company are sitting at:
- -0.12 for the present operating margin
- 0.6 for the gross margin
The net margin for Udemy Inc stands at -0.11. The total capital return value is set at -0.36. Equity return is now at value -29.78, with -12.51 for asset returns.
Based on Udemy Inc (UDMY), the company’s capital structure generated 0.05 points at debt to capital in total, while cash flow to debt ratio is standing at 4.13. The debt to equity ratio resting at 0.05. The interest coverage ratio of the stock is -369.89.
Currently, EBITDA for the company is -87.04 million with net debt to EBITDA at 4.63. When we switch over and look at the enterprise to sales, we see a ratio of 1.29. The receivables turnover for the company is 9.33for trailing twelve months and the total asset turnover is 1.14. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.28.
Conclusion
To put it simply, Udemy Inc (UDMY) has had a mixed performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
