Udemy Inc. (NASDAQ: UDMY) stock fell -1.00% on Monday to $9.87 against a previous-day closing price of $9.97. With 0.79 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.53 million shares. During the session, the Education & Training Services company that operates in wider Consumer Defensive sector, reached to the highest price of $10.01 whereas the lowest price it dropped to was $9.76. The 52-week range on UDMY shows that it touched its highest point at $17.26 and its lowest point at $8.17 during that stretch. It currently has a 1-year price target of $13.93. Beta for the stock currently stands at 1.80.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of UDMY was down-trending over the past week, with a drop of -1.10%, but this was down by -3.89% over a month. Three-month performance dropped to -6.97% while six-month performance rose 11.02%. The stock lost -33.98% in the past year, while it has lost -6.45% so far this year. A look at the trailing 12-month EPS for UDMY yields -1.18 with Next year EPS estimates of 0.02. For the next quarter, that number is -0.02. This implies an EPS growth rate of -89.90% for this year and 116.70% for next year.
Float and Shares Shorts:
At present, 148.07 million UDMY shares are outstanding with a float of 138.72 million shares on hand for trading. On Aug 30, 2023, short shares totaled 3.41 million, which was 2.26% higher than short shares on Jul 30, 2023. In addition to Mr. Gregory Scott Brown as the firm’s Pres, CEO & Director, Ms. Sarah Walter Blanchard serves as its Chief Financial Officer.
Through their ownership of 79.42% of UDMY’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 35.20% of UDMY, in contrast to 18.29% held by mutual funds. Shares owned by individuals account for 11.27%. As the largest shareholder in UDMY with 6.54% of the stake, Caledonia holds 9,838,021 shares worth 9,838,021. A second-largest stockholder of UDMY, The Vanguard Group, Inc., holds 7,225,525 shares, controlling over 4.81% of the firm’s shares. Greenvale Capital LLP is the third largest shareholder in UDMY, holding 6,450,000 shares or 4.29% stake. With a 1.58% stake in UDMY, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 2,370,324 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 1.40% of UDMY stock, is the second-largest Mutual Fund holder. It holds 2,107,468 shares valued at 21.83 million. iShares Russell 2000 ETF holds 1.28% of the stake in UDMY, owning 1,922,454 shares worth 19.92 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, UDMY reported revenue of $153.11M and operating income of -$28.53M. The EBITDA in the recently reported quarter was -$23.29M and diluted EPS was -$0.21.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for UDMY since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With UDMY analysts setting a high price target of $22.00 and a low target of $10.00, the average target price over the next 12 months is $13.58. Based on these targets, UDMY could surge 122.9% to reach the target high and rise by 1.32% to reach the target low. Reaching the average price target will result in a growth of 37.59% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded UDMY stock several times over the past three months with 8 Buys and 2 Sells. In these transactions, 1,226,430 shares were bought while 30,000 shares were sold. The number of buy transactions has increased to 28 while that of sell transactions has risen to 51 over the past year. The total number of shares bought during that period was 2,614,200 while 1,043,154 shares were sold.