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Coursera, Inc. (NYSE:COUR) director Andrew Y. Ng recently made significant changes to his holdings in the company, according to a new filing with the SEC. On March 19 and 20, Ng sold a total of 75,000 shares of Coursera, making more than $1 million from the sales.
The transactions were carried out according to a pre-arranged trading plan, known as the Rule 10b5-1 plan, which allows company insiders to sell shares at set times to avoid insider trading charges. The sales were executed at weighted average prices, with 50,000 shares sold on March 19 at prices between $14.065 and $14.315 and another 25,000 shares on March 20 at prices between $14.20 and $14.63.
Following the sales, Ng’s direct holdings in Coursera common stock fell to 7,058,074 shares. The total value of the shares sold on the first day was approximately $709,200, plus another $361,070 from transactions on the second day, for a grand total of over $1.07 million.
In addition to the share sale, Ng also exercised options to acquire 50,000 shares of Coursera common stock at a price of $1.68 per share, for a total transaction value of $84,000. These options were part of an initial grant of options to purchase 1,420,000 shares, which vests monthly over several years, contingent on continued employment with the company.
Ng’s recent transactions provide insight into the trading activities of Coursera insiders, which may be of interest to investors and market watchers. Shares of Coursera, a provider of online courses and degrees from top universities and companies, are publicly traded and followed by investors seeking to understand the dynamics of the educational technology market.
Investors and analysts often monitor insider transactions because they can provide signals about executives’ confidence in the company’s prospects. However, it is important to note that insider trading activities can be subject to different motivations and cannot always directly indicate the future performance of the company’s stock.
Insights on InvestingPro
In light of recent insider transactions at Coursera, Inc. (NYSE:COUR), investors may find it useful to consider several metrics and insights from InvestingPro. As director Andrew Y. Ng adjusts his stake in the company, the following data provides broader context of Coursera’s financial health and market performance.
InvestingPro data indicates that Coursera holds a market capitalization of approximately $2.26 billion, reflecting the market’s perceived value of the company. Despite the challenges, Coursera managed solid revenue growth of 21.39% over the trailing twelve months as of Q4 2023. This growth is a testament to the company’s ability to expand its online education offerings in a competitive market .
However, Coursera’s P/E ratio stands at -18.77, with an adjusted P/E ratio for the trailing twelve months as of Q4 2023 at -19.27, suggesting that investors are waiting for the the company turns its growth into sustainable profits. The company’s share price has seen significant volatility, dropping 27.89% over the past three months, but analysts remain optimistic, with seven of them revising their earnings estimates for the coming period upwards.
Two tips from InvestingPro that may be particularly relevant to investors are:
- Coursera’s balance sheet reflects a strong liquidity position, as it holds more cash than debt, providing the company with financial flexibility.
- Analysts expect Coursera to be profitable this year, which could be a turning point for the company’s financial performance.
For those interested in more in-depth analysis, there are additional InvestingPro tips, including insights into Coursera’s earnings growth expectations and stock price movements. To access these tips and more, visit https://www.investing.com/pro/COUR and use coupon code PRONEWS24 to get an additional 10% discount on the annual or biennial Pro and Pro+ subscription.
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