Udemy (NASDAQ:UDMY) Cut to “Hold” at Canaccord Genuity Group

Canaccord Genuity Group downgraded shares of Udemy (NASDAQ:UDMY) from a buy rating to a hold rating in a research report report published on Wednesday morning, Marketbeat reports. The brokerage currently has $7.00 target price on the stock, down from their previous target price of $12.00.

UDMY has been the subject of a number of other reports. Needham & Company LLC reissued a “buy” rating and set a $11.00 price target on shares of Udemy in a research report on Thursday, October 30th. Zacks Research lowered shares of Udemy from a “strong-buy” rating to a “hold” rating in a report on Friday, November 28th. KeyCorp reissued an “overweight” rating on shares of Udemy in a research report on Thursday, December 11th. Weiss Ratings restated a “sell (e+)” rating on shares of Udemy in a research note on Wednesday, October 8th. Finally, Wall Street Zen upgraded Udemy from a “buy” rating to a “strong-buy” rating in a research note on Sunday, December 7th. Four analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Udemy has an average rating of “Hold” and a consensus target price of $9.00.

Udemy Stock Down 5.2%

NASDAQ UDMY opened at $5.97 on Wednesday. The firm has a market capitalization of $873.89 million, a PE ratio of -198.93 and a beta of 1.74. The stock’s 50 day moving average is $5.67 and its 200 day moving average is $6.55. Udemy has a twelve month low of $4.86 and a twelve month high of $10.61.

Udemy (NASDAQ:UDMY) last posted its quarterly earnings data on Wednesday, October 29th. The company reported $0.13 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.10 by $0.03. Udemy had a positive return on equity of 2.11% and a negative net margin of 0.47%.The business had revenue of $195.68 million during the quarter, compared to the consensus estimate of $193.09 million. During the same quarter in the prior year, the company earned $0.07 earnings per share. The firm’s quarterly revenue was up .1% compared to the same quarter last year. On average, research analysts anticipate that Udemy will post -0.09 earnings per share for the current year.

Udemy declared that its Board of Directors has authorized a share buyback plan on Wednesday, September 10th that authorizes the company to buyback $50.00 million in outstanding shares. This buyback authorization authorizes the company to buy up to 5% of its stock through open market purchases. Stock buyback plans are usually 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 business’s stock in a transaction on Monday, December 15th. The shares were sold at an average price of $5.25, for a total transaction of $131,250.00. Following the completion of the sale, the chief financial officer directly owned 1,208,046 shares in the company, valued at approximately $6,342,241.50. The trade was a 2.03% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 2.10% of the company’s stock.

Institutional Trading of Udemy

Large investors have recently modified their holdings of the company. Janney Montgomery Scott LLC purchased a new stake in Udemy in the second quarter worth about $340,000. Connor Clark & Lunn Investment Management Ltd. grew its stake in shares of Udemy by 109.1% during the 2nd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 504,823 shares of the company’s stock valued at $3,549,000 after acquiring an additional 263,358 shares during the period. Campbell & CO Investment Adviser LLC bought a new position in shares of Udemy during the 2nd quarter valued at approximately $668,000. Y Intercept Hong Kong Ltd increased its holdings in Udemy by 203.7% in the 2nd quarter. Y Intercept Hong Kong Ltd now owns 344,388 shares of the company’s stock worth $2,421,000 after acquiring an additional 230,994 shares in the last quarter. Finally, Assenagon Asset Management S.A. raised its stake in Udemy by 70.8% during 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 during the period. Institutional investors own 79.48% of the company’s stock.

Key Stores Impacting Udemy

Here are the key news stories impacting Udemy this week:

• Positive Sentiment: Strategic scale and AI focus — The combination is being framed as a move to create a global, AI‑driven upskilling leader with broader enterprise offerings and complementary course catalogs, which could drive cross‑sell and revenue expansion. Coursera, Udemy announce $2.5bn merger agreement
• Positive Sentiment: Potential operational synergies — Analysts and industry writeups highlight cost and product synergies as well as a stronger enterprise sales footprint that could improve monetization over time. Coursera’s Acquisition Of Udemy Strengthens Its Enterprise Base
• Neutral Sentiment: Deal structure is all‑stock (0.800 Coursera shares per Udemy share) — the outcome for Udemy holders depends on Coursera’s post‑deal performance and the combined company’s ability to deliver on AI roadmap. This reduces cash certainty but preserves upside if COUR shares rerate. Coursera and Udemy Join Forces in $2.5 Billion Strategic Merger
• Neutral Sentiment: Market skepticism about execution and AI timing — commentary notes AI urgency is driving the deal, but execution risk and integration complexity are nontrivial. Coursera Acquiring Udemy
• Negative Sentiment: Investor litigation risk — law firm Kahn Swick & Foti announced an investigation into whether the sale price and process are adequate, which can delay deal closing, create disclosure/earnings risk, or lead to litigation. Udemy Investor Alert By The Former Attorney General Of Louisiana
• Negative Sentiment: Analyst downgrade — Canaccord cut Udemy to “Hold,” signaling reduced near‑term conviction and adding selling pressure. Udemy Rating Lowered to “Hold” at Canaccord Genuity Group

Udemy Company Profile

Udemy, Inc (NASDAQ: UDMY) operates a leading online learning marketplace that connects learners and instructors across a wide range of subject areas. The company’s platform hosts thousands of self-paced video courses covering technology, business, personal development, creative arts and more. Individual learners can purchase courses on demand, while instructors receive revenue share for teaching content to a global audience.

In addition to its consumer-facing marketplace, Udemy provides enterprise learning solutions under the Udemy for Business brand.