Morgan Stanley has recently reduced Udemy Inc (UDMY) stock rating, as announced on September 27, 2024, according to Finviz. Earlier, on August 8, 2024, Canaccord Genuity had initiated the stock to Buy, setting a price target of $12. BofA Securities also reduced Neutral rating with a price target of $8.50. Additionally, BofA Securities resumed Buy rating on October 19, 2023, with a target price of $13. Piper Sandler analysts, in their report published on July 18, 2022, also reduced Neutral rating and set a price target of $13 for Udemy Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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Udemy Inc (UDMY) Stock Trading Recap
On Monday, Udemy Inc (UDMY) stock saw a decline, ending the day at $7.44 which represents a decrease of $-0.21 or -2.75% from the prior close of $7.65. The stock opened at $7.51 and touched a low of $7.44 during the day, reaching a high of $7.82. The volume of shares traded was 1.09 million exceeding the average volume of 0.96 million.
UDMY Stock Performance and Moving Averages
In recent trading, Udemy Inc (UDMY) stock price has shown some volatility, fluctuating -7.81% over the last five trades and -9.71% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -31.68%, and it has plunged by -12.47% in the previous three months. Currently, UDMY is trading at -7.15%, -6.75%, and -27.82% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, UDMY, a Consumer Defensive sector stock, is trading -53.53% below its 52-week high but remains 11.54% above its 52-week low. The Average True Range (ATR) (14 days) of 0.31 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Udemy Inc’s Profitability and Valuation Ratios
Udemy Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of -12.47% and a profit margin of -11.39%, with a gross margin of -31.68%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Udemy Inc’s market capitalization stands at $1.12 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The forward P/E ratio, which uses projected earnings for the next financial year, is 24.2. Additionally, the Price-to-Sales Ratio is 1.46, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 3.85, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 48.15% of Udemy Inc (UDMY)’s shares, while financial institutions hold 42.55%.
Notable insider trades include Blanchard Sarah, Chief Financial Officer at Udemy Inc (UDMY), who sold 45000 shares on Aug 21 ’24, at $8.05 each, totaling $0.36 million. On Jul 26 ’24, Bali Eren, Director, sold 15000 shares for $9.1 each, amounting to $0.14 million. Additionally, on Jun 12 ’24, Bali Eren sold 14600 shares at $9.06 each, generating $0.13 million.
