Coursera announces $500M share buyback program
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 10 2024
0mins
Source: SeekingAlpha
Coursera's stock fell by 6.63% as it crossed below the 5-day SMA amid broader market declines, with the Nasdaq-100 down 0.68% and the S&P 500 down 0.71%.
Despite the stock's decline, Coursera's board has approved a $500 million share buyback program aimed at enhancing shareholder value and leveraging existing cash flow. The buyback will be funded through existing cash balances and operational cash flow, reflecting the company's financial strength and confidence in future growth. Additionally, Coursera reaffirmed its revenue outlook for 2026, projecting between $805 million and $815 million, and targeting approximately $115 million in cost synergies post-Udemy merger.
The buyback program is expected to bolster investor confidence and may provide support for the stock price in the long term, despite the current market challenges.
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Analyst Views on COUR
Wall Street analysts forecast COUR stock price to rise
13 Analyst Rating
8 Buy
5 Hold
0 Sell
Moderate Buy
Current: 5.310
Low
9.00
Averages
12.10
High
14.00
Current: 5.310
Low
9.00
Averages
12.10
High
14.00
About COUR
Coursera, Inc. operates a global online learning platform that connects an ecosystem of learners, content creators, organizations, and institutions. The platform offers educational content, credentials, and learning tools to support skills development and career advancement. Its segments include Consumer and Enterprise. The Consumer segment focuses on attracting learners via branded content, institutional partnerships, and digital marketing, supported by personalized discovery and localized recommendations. The Enterprise segment engages employers, academic institutions, and government organizations through a direct sales team, as well as data-driven insights derived from activity on the Consumer platform. It partners with over 375 content creators, including universities and industry organizations, to create and distribute educational content. It offers a range of learning products to meet diverse educational and professional development needs, including accredited degree programs.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Coursera Approves $500M Share Buyback Program
- Buyback Program Approval: Coursera's board has approved a share repurchase program allowing the company to buy back up to $500 million of its common stock, aimed at enhancing shareholder value and leveraging existing cash flow.
- Funding Sources Clear: The buyback is expected to be funded through existing cash balances and operational cash flow, demonstrating the company's financial robustness and confidence in future growth.
- Positive Stock Reaction: Following the announcement of the buyback program, Coursera's shares rose by 5.3%, reflecting a positive market response to the company's strategic initiatives and increased investor confidence.
- Optimistic Future Outlook: Coursera reaffirmed its revenue outlook for 2026 to be between $805 million and $815 million, while targeting approximately $115 million in run-rate cost synergies within 24 months post-Udemy merger, further solidifying its market position.
See More
Analysis of Coursera Stock Investment Prospects
- Valuation Appeal: Coursera's current share price of $6.35 and a P/E ratio of 14.43 indicate that its valuation in the ed-tech sector is undervalued, despite the market significantly discounting its medium-term earnings potential, suggesting a rebound opportunity.
- Fundamental Improvement: The company is experiencing accelerating revenue growth, positive cash flow, and improving margins, indicating a clearer path to profitability, with intrinsic value estimates around $11.45 per share, implying substantial upside potential.
- Technical Recovery: Technical indicators show that the stock's RSI is beginning to recover, with the Money Flow Index crossing above 50, suggesting that buyers are gradually re-entering the market, which may signal a trend reversal and boost investor confidence.
- AI-Driven Growth: Coursera benefits from surging global demand for generative AI and data science courses, as management shifts focus towards high-quality, scalable revenue streams, further enhancing its market competitiveness and financial stability.
See More
Investigation into Coursera Investor Claims
- Financial Performance Disclosure: Coursera reported Q1 2026 revenue of $195.7 million, a 9% year-over-year increase, yet the overall revenue outlook remains at $805 million to $815 million, with enterprise performance falling short of long-term expectations, indicating weak market demand.
- Enterprise Growth Struggles: The company disclosed enterprise revenue of $66.2 million, up 7% year-over-year, but the growth rate lags behind consumer business, reflecting ongoing pressure on enterprise demand and retention, which could impact future profitability.
- Stock Price Decline Impact: Following the disappointing performance, Coursera's stock price dropped, resulting in investor losses and prompting Johnson Fistel to investigate whether the company complied with federal securities laws to protect investor rights.
- Law Firm Involvement: Johnson Fistel is representing investors in investigating potential claims, emphasizing its expertise and success in securities class actions, having recovered approximately $90.725 million for clients in the past, showcasing its capability in advocating for investor rights.
See More
Coursera Shares Plunge 17% as Analysts Cut Price Targets
- Significant Stock Drop: Coursera's shares plummeted 17% this week, marking its worst performance in 20 months, reflecting investor disappointment over the company's Q2 guidance, which has led to a notable decline in market confidence.
- Guidance Misses Expectations: The company’s Q2 revenue guidance of $196 to $200 million slightly fell short of analyst expectations of $198 to $200 million, while the FY26 guidance was updated to $805 million to $815 million, below the anticipated $815 million, indicating uncertainty in future growth.
- Divergent Analyst Ratings: According to Koyfin, among 13 analysts, 7 rated the stock as ‘buy’, 4 as ‘hold’, and 2 as ‘sell’, highlighting a significant divergence in market sentiment regarding Coursera's future performance.
- Weak Consumer Revenue Growth: RBC Capital lowered its price target to $7, noting that consumer revenue growth missed consensus estimates, and while enterprise revenue exceeded expectations, it still faces challenges in a mixed demand environment across customer segments and regions.
See More
Coursera Shares Plunge 11.6% Following Q1 Earnings Miss
- Significant Stock Decline: Coursera's stock fell 11.6% on Friday, contrasting with the S&P 500's 0.8% gain and the Nasdaq's 1.6% rise, indicating a negative market reaction to its earnings report, resulting in a year-to-date decline of approximately 28%.
- Earnings Report Analysis: The company reported non-GAAP earnings of $0.07 per share on sales of $195.7 million for Q1, surpassing sales expectations by about $0.6 million, yet falling short of earnings expectations by $0.01, raising concerns about its pricing power amid potential disruptions from artificial intelligence.
- Market Reaction and Outlook: Despite the disappointing Q1 results, Coursera reaffirmed its guidance for annual sales between $805 million and $815 million, and achieving the midpoint would indicate a growth of roughly 7% over last year's $757 million, reflecting the stability of its customer base.
- Investor Sentiment and Opportunities: While the stock has significantly declined, analysts suggest that investors may be overreacting to the earnings report, as Coursera still has opportunities to leverage AI to adapt to competitive changes, potentially leading to a recovery in growth.
See More
Midday Market Moves: Notable Stock Fluctuations
- Comcast Downgrade: Comcast's stock fell nearly 8% after Deutsche Bank downgraded its rating from Buy to Hold, with analysts indicating that while there is visibility into sustainable revenue and EBITDA growth, they do not expect multiple expansion, highlighting challenges in a stable but non-growing business environment.
- HCA Healthcare Decline: HCA Healthcare's stock dropped over 7% due to a milder flu season resulting in fewer patient admissions, and although the company narrowly beat analyst profit estimates, investors are concerned about declining patient demand as Affordable Care Act subsidies phase out.
- Organon Surge: Organon's stock spiked 22% following a report from The Economic Times that Sun Pharma plans to submit a $13 billion offer for the U.S.-based company, which could significantly enhance Organon's market value and investor confidence.
- Intel Earnings Beat: Intel reported first-quarter earnings of 29 cents per share on revenue of $13.58 billion, both exceeding Wall Street expectations, leading to a stock rally of over 23%, indicating a strong recovery momentum in the semiconductor market that may boost overall industry investment enthusiasm.
See More
Coursera Approves $500M Share Buyback Program
- Buyback Program Approval: Coursera's board has approved a share repurchase program allowing the company to buy back up to $500 million of its common stock, aimed at enhancing shareholder value and leveraging existing cash flow.
- Funding Sources Clear: The buyback is expected to be funded through existing cash balances and operational cash flow, demonstrating the company's financial robustness and confidence in future growth.
- Positive Stock Reaction: Following the announcement of the buyback program, Coursera's shares rose by 5.3%, reflecting a positive market response to the company's strategic initiatives and increased investor confidence.
- Optimistic Future Outlook: Coursera reaffirmed its revenue outlook for 2026 to be between $805 million and $815 million, while targeting approximately $115 million in run-rate cost synergies within 24 months post-Udemy merger, further solidifying its market position.
See More
Analysis of Coursera Stock Investment Prospects
- Valuation Appeal: Coursera's current share price of $6.35 and a P/E ratio of 14.43 indicate that its valuation in the ed-tech sector is undervalued, despite the market significantly discounting its medium-term earnings potential, suggesting a rebound opportunity.
- Fundamental Improvement: The company is experiencing accelerating revenue growth, positive cash flow, and improving margins, indicating a clearer path to profitability, with intrinsic value estimates around $11.45 per share, implying substantial upside potential.
- Technical Recovery: Technical indicators show that the stock's RSI is beginning to recover, with the Money Flow Index crossing above 50, suggesting that buyers are gradually re-entering the market, which may signal a trend reversal and boost investor confidence.
- AI-Driven Growth: Coursera benefits from surging global demand for generative AI and data science courses, as management shifts focus towards high-quality, scalable revenue streams, further enhancing its market competitiveness and financial stability.
See More
Investigation into Coursera Investor Claims
- Financial Performance Disclosure: Coursera reported Q1 2026 revenue of $195.7 million, a 9% year-over-year increase, yet the overall revenue outlook remains at $805 million to $815 million, with enterprise performance falling short of long-term expectations, indicating weak market demand.
- Enterprise Growth Struggles: The company disclosed enterprise revenue of $66.2 million, up 7% year-over-year, but the growth rate lags behind consumer business, reflecting ongoing pressure on enterprise demand and retention, which could impact future profitability.
- Stock Price Decline Impact: Following the disappointing performance, Coursera's stock price dropped, resulting in investor losses and prompting Johnson Fistel to investigate whether the company complied with federal securities laws to protect investor rights.
- Law Firm Involvement: Johnson Fistel is representing investors in investigating potential claims, emphasizing its expertise and success in securities class actions, having recovered approximately $90.725 million for clients in the past, showcasing its capability in advocating for investor rights.
See More
Coursera Shares Plunge 17% as Analysts Cut Price Targets
- Significant Stock Drop: Coursera's shares plummeted 17% this week, marking its worst performance in 20 months, reflecting investor disappointment over the company's Q2 guidance, which has led to a notable decline in market confidence.
- Guidance Misses Expectations: The company’s Q2 revenue guidance of $196 to $200 million slightly fell short of analyst expectations of $198 to $200 million, while the FY26 guidance was updated to $805 million to $815 million, below the anticipated $815 million, indicating uncertainty in future growth.
- Divergent Analyst Ratings: According to Koyfin, among 13 analysts, 7 rated the stock as ‘buy’, 4 as ‘hold’, and 2 as ‘sell’, highlighting a significant divergence in market sentiment regarding Coursera's future performance.
- Weak Consumer Revenue Growth: RBC Capital lowered its price target to $7, noting that consumer revenue growth missed consensus estimates, and while enterprise revenue exceeded expectations, it still faces challenges in a mixed demand environment across customer segments and regions.
See More
Coursera Shares Plunge 11.6% Following Q1 Earnings Miss
- Significant Stock Decline: Coursera's stock fell 11.6% on Friday, contrasting with the S&P 500's 0.8% gain and the Nasdaq's 1.6% rise, indicating a negative market reaction to its earnings report, resulting in a year-to-date decline of approximately 28%.
- Earnings Report Analysis: The company reported non-GAAP earnings of $0.07 per share on sales of $195.7 million for Q1, surpassing sales expectations by about $0.6 million, yet falling short of earnings expectations by $0.01, raising concerns about its pricing power amid potential disruptions from artificial intelligence.
- Market Reaction and Outlook: Despite the disappointing Q1 results, Coursera reaffirmed its guidance for annual sales between $805 million and $815 million, and achieving the midpoint would indicate a growth of roughly 7% over last year's $757 million, reflecting the stability of its customer base.
- Investor Sentiment and Opportunities: While the stock has significantly declined, analysts suggest that investors may be overreacting to the earnings report, as Coursera still has opportunities to leverage AI to adapt to competitive changes, potentially leading to a recovery in growth.
See More
Midday Market Moves: Notable Stock Fluctuations
- Comcast Downgrade: Comcast's stock fell nearly 8% after Deutsche Bank downgraded its rating from Buy to Hold, with analysts indicating that while there is visibility into sustainable revenue and EBITDA growth, they do not expect multiple expansion, highlighting challenges in a stable but non-growing business environment.
- HCA Healthcare Decline: HCA Healthcare's stock dropped over 7% due to a milder flu season resulting in fewer patient admissions, and although the company narrowly beat analyst profit estimates, investors are concerned about declining patient demand as Affordable Care Act subsidies phase out.
- Organon Surge: Organon's stock spiked 22% following a report from The Economic Times that Sun Pharma plans to submit a $13 billion offer for the U.S.-based company, which could significantly enhance Organon's market value and investor confidence.
- Intel Earnings Beat: Intel reported first-quarter earnings of 29 cents per share on revenue of $13.58 billion, both exceeding Wall Street expectations, leading to a stock rally of over 23%, indicating a strong recovery momentum in the semiconductor market that may boost overall industry investment enthusiasm.
See More
