Overview of Baillie Gifford (Trades, Portfolio)'s Recent Transaction

On November 29, 2024, Baillie Gifford (Trades, Portfolio), a renowned investment management firm, executed a significant transaction involving Coursera Inc (NYSE: COUR). The firm reduced its holdings by 11,956,674 shares at a trade price of $7.95 per share. This transaction resulted in Baillie Gifford (Trades, Portfolio) holding 9,123,294 shares of Coursera, which now represents 0.05% of the firm's portfolio. The reduction reflects a strategic decision to adjust the firm's exposure to Coursera, a company that has been a part of its investment strategy.

Baillie Gifford (Trades, Portfolio): A Century of Investment Excellence

Baillie Gifford (Trades, Portfolio), established over a century ago, is a partnership-driven investment management firm known for its long-term, bottom-up investment approach. The firm focuses on identifying companies with the potential for sustainable growth, leveraging a rigorous process of fundamental analysis and proprietary research. Baillie Gifford (Trades, Portfolio) manages assets for some of the world's largest professional investors, with a diverse client base spanning the US, Canada, Europe, and Asia. The firm's top holdings include Amazon.com Inc (AMZN, Financial), MercadoLibre Inc (MELI, Financial), and NVIDIA Corp (NVDA, Financial), reflecting its emphasis on technology and consumer cyclical sectors.

Coursera Inc: A Leader in Online Education

Coursera Inc, a prominent online learning platform, connects learners, educators, and institutions to provide accessible and affordable educational content. The company operates through three segments: Consumer, Enterprise, and Degrees, with the Consumer segment being the primary revenue driver. As of February 12, 2025, Coursera has a market capitalization of $1.26 billion and a stock price of $7.97. Despite its innovative platform, Coursera faces challenges in profitability, as indicated by its negative return on equity (ROE) of -13.25% and return on assets (ROA) of -8.67%.

Impact of the Transaction on Baillie Gifford (Trades, Portfolio)'s Portfolio

The reduction in Coursera shares has adjusted Baillie Gifford (Trades, Portfolio)'s holdings in the company to 5.80% of the total shares. This strategic move reflects the firm's assessment of Coursera's current valuation and growth prospects. The transaction's impact on Baillie Gifford (Trades, Portfolio)'s portfolio is relatively minor, given the firm's extensive asset base of $130.14 billion. However, it underscores the firm's commitment to optimizing its investment strategy in response to market conditions and company performance.

Financial Metrics and Valuation of Coursera

Coursera's financial metrics reveal a mixed picture. The company's [GF Value](https://www.gurufocus.com/term/gf-value/COUR) of $15.65 suggests significant undervaluation, with the current stock price at $7.97, representing a price to GF Value ratio of 0.51. Despite this, Coursera's [GF Score](https://www.gurufocus.com/term/gf-score/COUR) of 69/100 indicates poor future performance potential. The company's [Financial Strength](https://www.gurufocus.com/term/rank-balancesheet/COUR) is ranked 8/10, but its [Profitability Rank](https://www.gurufocus.com/term/rank-profitability/COUR) is a low 3/10, highlighting ongoing challenges in achieving sustainable profitability.

Performance and Growth Indicators

Coursera's recent performance has been lackluster, with a year-to-date price change of -6.01%. Over the past three years, the company has achieved a revenue growth rate of 6.50%, but profitability remains elusive. The company's [Operating Margin](https://www.gurufocus.com/term/operating-margin/COUR) growth of 7.50% is a positive sign, yet the overall financial health is constrained by negative ROE and ROA figures. Coursera's [Altman Z score](https://www.gurufocus.com/term/zscore/COUR) of 2.09 suggests moderate financial distress, necessitating careful monitoring by investors.

Conclusion: Strategic Implications for Value Investors

Baillie Gifford (Trades, Portfolio)'s decision to reduce its stake in Coursera reflects a strategic reassessment of the company's valuation and growth potential. For value investors, Coursera presents a complex opportunity. While the stock is significantly undervalued according to its GF Value, the company's profitability challenges and modest growth indicators warrant cautious consideration. As the online education sector continues to evolve, Coursera's ability to capitalize on its platform and improve financial performance will be critical for future success.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.