Zacks Investment Research upgraded shares of Strategic Education (NASDAQ:STRA) from a sell rating to a hold rating in a research report report published on Tuesday.
According to Zacks, “Although shares of Strategic Education have outperformed its industry so far this year, its earnings estimates for 2018 and 2019 have also moved south in the past 30 days, limiting upside potential for the stock. Continuous decline in revenue per student due to tuition cuts and an unfavorable mix of students toward lower undergraduate tuition are causes of concern. Along with that, company is exposed to seasonal fluctuations and rising government interference which is likely to hamper company’s performance in near terms. However, on Aug 1, the company announced that Strayer Education, Inc. and Capella Education Company have completed the proposed merger deal to create SEI, a national leader in education innovation. The merger is expected to ensure student success, positive employment outcomes and be accretive to the company’s earnings.”
Other research analysts have also recently issued research reports about the stock. BidaskClub cut shares of Strategic Education from a strong-buy rating to a buy rating in a research note on Thursday, October 4th. ValuEngine upgraded shares of Strategic Education from a hold rating to a buy rating in a research note on Tuesday, October 2nd. Barrington Research reiterated a buy rating and issued a $160.00 target price on shares of Strategic Education in a research note on Monday, October 1st. BMO Capital Markets lifted their target price on shares of Strategic Education to $152.00 and gave the company an outperform rating in a research note on Friday, August 24th. Finally, Piper Jaffray Companies lifted their target price on shares of Strategic Education to $165.00 and gave the company an overweight rating in a research note on Thursday, August 2nd. One investment analyst has rated the stock with a hold rating and six have issued a buy rating to the company. The company has an average rating of Buy and an average target price of $144.40.
Strategic Education (NASDAQ:STRA) last posted its earnings results on Wednesday, August 1st. The health services provider reported $0.87 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.84 by $0.03. Strategic Education had a net margin of 3.14% and a return on equity of 18.39%. The company had revenue of $114.70 million during the quarter, compared to analysts’ expectations of $115.65 million. During the same quarter in the previous year, the company posted $0.92 earnings per share. Strategic Education’s quarterly revenue was up 1.8% compared to the same quarter last year. On average, sell-side analysts forecast that Strategic Education will post 4.48 EPS for the current fiscal year.
In related news, insider Robert S. Silberman sold 100,000 shares of the business’s stock in a transaction that occurred on Monday, August 6th. The shares were sold at an average price of $123.59, for a total value of $12,359,000.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director H James Dallas acquired 1,625 shares of the company’s stock in a transaction that occurred on Thursday, August 2nd. The stock was bought at an average price of $123.60 per share, with a total value of $200,850.00. The disclosure for this purchase can be found here. Insiders sold a total of 212,000 shares of company stock valued at $26,631,030 in the last 90 days. 3.70% of the stock is currently owned by corporate insiders.
A number of hedge funds have recently bought and sold shares of STRA. Bank of Montreal Can raised its position in shares of Strategic Education by 87.2% during the 3rd quarter. Bank of Montreal Can now owns 1,185 shares of the health services provider’s stock valued at $163,000 after acquiring an additional 552 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. bought a new stake in shares of Strategic Education during the 2nd quarter valued at $226,000. Crossmark Global Holdings Inc. bought a new stake in shares of Strategic Education during the 2nd quarter valued at $235,000. Yorktown Management & Research Co Inc bought a new stake in shares of Strategic Education during the 2nd quarter valued at $238,000. Finally, Commonwealth of Pennsylvania Public School Empls Retrmt SYS bought a new stake in shares of Strategic Education during the 2nd quarter valued at $257,000. Hedge funds and other institutional investors own 99.92% of the company’s stock.
Strategic Education Company Profile
Strategic Education, Inc, through its subsidiaries, provides a range of post-secondary education and other academic programs in the United States. The company operates Strayer University and Capella University that provide undergraduate and graduate degree programs in business administration, accounting, information technology, education, health services administration, nursing, public administration, and criminal justice to working adult students through its 74 physical campuses primarily located in the Mid-Atlantic and Southern regions, as well as through online.
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