Stock Analysis
Some Udemy, Inc. (NASDAQ:UDMY) shareholders may be a little concerned to see that the Chief Financial Officer, Sarah Blanchard, recently sold a substantial US$2.5m worth of stock at a price of US$12.13 per share. That's a big disposal, and it decreased their holding size by 42%, which is notable but not too bad.
View our latest analysis for Udemy
In fact, the recent sale by Sarah Blanchard was the biggest sale of Udemy shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$11.05. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Insiders in Udemy didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.8% of Udemy shares, worth about US$28m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 1 warning sign with Udemy and understanding it should be part of your investment process.
But note: Udemy may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
What are the risks and opportunities for Udemy?
NasdaqGS:UDMY
Udemy
Udemy, Inc. operates a marketplace platform for teaching and learning skills in the United States and internationally.
Rewards
Trading at 65.1% below our estimate of its fair value
Earnings are forecast to grow 41.1% per year
Revenue grew by 22.2% over the past year
Risks
Significant insider selling over the past 3 months
Share Price
Market Cap
1Y Return
Further research on
Udemy
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Udemy, Inc. operates a marketplace platform for teaching and learning skills in the United States and internationally.
The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.
Read more about these checks in the individual report sections or in our analysis model.
Excellent balance sheet with reasonable growth potential.
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