Coursera (NYSE:COUR) Trading 8.3% Higher Following Better-Than-Expected Earnings

Coursera, Inc. (NYSE:COUR) shares rose 8.3% during trading on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $6.22 and last traded at $6.3350. Approximately 5,344,659 shares changed hands during mid-day trading, a decline of 9% from the average daily volume of 5,869,623 shares. The stock had previously closed at $5.85.

The company reported $0.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.11 by $0.06. Coursera had a negative net margin of 15.39% and a negative return on equity of 2.08%. The company had revenue of $298.60 million during the quarter, compared to the consensus estimate of $298.65 million. During the same quarter in the prior year, the firm earned $0.12 earnings per share. The firm’s revenue was up 59.6% compared to the same quarter last year.

Coursera declared that its Board of Directors has authorized a share buyback program on Monday, May 18th that authorizes the company to repurchase $500.00 million in shares. This repurchase authorization authorizes the company to purchase up to 55.9% of its shares through open market purchases. Shares repurchase programs are often an indication that the company’s management believes its shares are undervalued.

More Coursera News

Here are the key news stories impacting Coursera this week:

• Positive Sentiment: Coursera reported second-quarter adjusted earnings of $0.17 per share, above the $0.11 analyst consensus and up from $0.12 a year earlier. Revenue increased 59.6% year over year to $298.6 million, broadly in line with the $298.65 million consensus. Coursera Q2 earnings results
• Positive Sentiment: Management projected third-quarter revenue of $364 million to $372 million, compared with the $366.5 million consensus, and maintained full-year revenue guidance of approximately $1.2 billion. Coursera also expects about a 14% adjusted EBITDA margin in 2026 and at least $85 million in run-rate synergies by year-end. Coursera EBITDA margin and synergy outlook
• Positive Sentiment: Coursera invested $100 million in LearnVector, an artificial-intelligence startup led by its chairman Andrew Ng, receiving roughly a one-third stake. The deal could strengthen Coursera’s AI and reskilling offerings, although it also increases execution and investment risk. Coursera invests in LearnVector
• Neutral Sentiment: Zacks upgraded COUR to Rank #1, or “Strong Buy,” citing improving earnings prospects. However, this quantitative upgrade has been overshadowed by investor concerns about the quality and composition of reported growth. Zacks upgrades Coursera
• Negative Sentiment: The primary pressure on the stock is Coursera’s lower second-quarter core revenue, which prompted a sharp post-earnings selloff. The near-consensus total revenue figure and earnings beat were not enough to offset concerns about underlying growth momentum. Coursera slides on lower core revenue

Wall Street Analyst Weigh In

A number of analysts have recently commented on COUR shares. JPMorgan Chase & Co. cut their price target on Coursera from $10.00 to $8.00 and set an “overweight” rating on the stock in a report on Friday, April 24th. Bank of America cut their target price on Coursera from $8.00 to $7.00 and set a “neutral” rating on the stock in a research note on Tuesday, June 30th. Telsey Advisory Group decreased their price target on shares of Coursera from $14.00 to $10.00 and set an “outperform” rating for the company in a research note on Friday, April 24th. Wall Street Zen downgraded Coursera from a “buy” rating to a “hold” rating in a research note on Saturday, July 25th. Finally, Zacks Research upgraded Coursera from a “hold” rating to a “strong-buy” rating in a research note on Friday, July 24th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, two have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, Coursera currently has an average rating of “Moderate Buy” and a consensus price target of $8.50.

Insider Activity

In other Coursera news, major shareholder Insight Holdings Group, Llc sold 1,466,372 shares of the firm’s stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $5.24, for a total transaction of $7,683,789.28. Following the completion of the sale, the insider directly owned 419,784 shares in the company, valued at $2,199,668.16. This trade represents a 77.74% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, SVP Alan B. Cardenas sold 9,139 shares of the business’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $5.52, for a total value of $50,447.28. Following the sale, the senior vice president owned 255,934 shares of the company’s stock, valued at approximately $1,412,755.68. This represents a 3.45% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 2,009,139 shares of company stock valued at $10,643,180 in the last ninety days. 16.30% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Coursera

Large investors have recently made changes to their positions in the company. Aster Capital Management DIFC Ltd bought a new stake in Coursera in the 4th quarter valued at $25,000. Quarry LP lifted its holdings in shares of Coursera by 619.9% during the third quarter. Quarry LP now owns 4,024 shares of the company’s stock worth $47,000 after buying an additional 3,465 shares in the last quarter. Caitong International Asset Management Co. Ltd boosted its position in shares of Coursera by 224.1% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 4,939 shares of the company’s stock valued at $36,000 after acquiring an additional 3,415 shares during the period. Clearstead Trust LLC acquired a new position in shares of Coursera in the fourth quarter valued at about $39,000. Finally, Optiver Holding B.V. bought a new position in Coursera during the first quarter worth about $31,000. Institutional investors own 89.55% of the company’s stock.

Coursera Trading Down 14.3%

The firm has a market cap of $896.62 million, a price-to-earnings ratio of -7.90, a PEG ratio of 2.49 and a beta of 1.23. The firm’s 50 day simple moving average is $5.55 and its two-hundred day simple moving average is $5.85.

Coursera Company Profile

Coursera, Inc (NYSE:COUR) operates a leading online learning platform that delivers courses, specializations, professional certificates and fully accredited degree programs in collaboration with top universities and industry partners. Founded in 2012 by Stanford University professors Andrew Ng and Daphne Koller, Coursera’s mission is to provide universal access to world-class education and bridge skill gaps in a rapidly evolving job market.

The platform features more than 6,000 offerings created by over 275 academic institutions and corporate entities, spanning fields such as data science, business, technology, health care and the arts.