Strategic Education (NASDAQ:STRA) Stock Gets Downgrade from Zacks Research

Strategic Education (NASDAQ:STRA) was downgraded by Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued on Monday, Zacks reports.

Several other equities research analysts have also recently commented on STRA. Weiss Ratings cut shares of Strategic Education from a “hold (c+)” rating to a “hold (c)” rating in a research report on Wednesday, October 28th. Truist Financial upped their target price on shares of Strategic Education from $80.00 to $90.00 and gave the stock a “hold” rating in a research note on Thursday, July 30th. Wall Street Zen cut Strategic Education from a “buy” rating to a “hold” rating in a report on Saturday. BMO Capital Markets downgraded Strategic Education from an “outperform” rating to a “market perform” rating and dropped their price target for the company from $95.00 to $66.00 in a research note on Friday. Finally, Barrington Research lowered Strategic Education from an “outperform” rating to a “hold” rating in a report on Friday, November 6th. Five research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Reduce” and an average price target of $87.00.

Strategic Education Stock Performance

NASDAQ STRA opened at $54.59 on Monday. The stock has a market cap of $1.19 billion, a price-to-earnings ratio of 321.12, a PEG ratio of 0.73 and a beta of 0.51. The business has a 50 day simple moving average of $77.73 and a 200 day simple moving average of $79.71. Strategic Education has a 52-week low of $50.70 and a 52-week high of $89.73.

Strategic Education (NASDAQ:STRA) last announced its quarterly earnings results on Thursday, November 5th. The health services provider reported $1.72 earnings per share for the quarter, missing analysts’ consensus estimates of $1.95 by ($0.23). The company had revenue of $325.07 million during the quarter, compared to the consensus estimate of $326.55 million. Strategic Education had a net margin of 0.74% and a return on equity of 9.13%. The business’s quarterly revenue was up 1.6% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.64 EPS. On average, analysts predict that Strategic Education will post 7.25 EPS for the current year.

Insider Transactions at Strategic Education

In related news, Director Michael Thawley bought 950 shares of the company’s stock in a transaction that occurred on Friday, November 6th. The shares were acquired at an average price of $51.42 per share, for a total transaction of $48,849.00. Following the completion of the acquisition, the director owned 13,104 shares of the company’s stock, valued at approximately $673,807.68. The trade was a 7.82% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director William J. Slocum purchased 1,000 shares of Strategic Education stock in a transaction that occurred on Friday, November 6th. The shares were bought at an average cost of $52.00 per share, with a total value of $52,000.00. Following the completion of the transaction, the director directly owned 8,815 shares of the company’s stock, valued at approximately $458,380. The trade was a 12.80% increase in their position. The SEC filing for this purchase provides additional information. Over the last 90 days, insiders have bought 3,140 shares of company stock valued at $163,118. Company insiders own 3.60% of the company’s stock.

Institutional Investors Weigh In On Strategic Education

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Hsbc Holdings PLC acquired a new stake in shares of Strategic Education in the 2nd quarter valued at approximately $1,594,000. Bank of America Corp DE bought a new stake in Strategic Education during the second quarter worth $6,974,000. BlackRock Inc. bought a new position in shares of Strategic Education in the 2nd quarter valued at about $291,189,000. PDT Partners LLC bought a new position in shares of Strategic Education in the 2nd quarter valued at about $3,521,000. Finally, Empowered Funds LLC acquired a new position in shares of Strategic Education during the 2nd quarter worth about $6,107,000. Institutional investors own 93.27% of the company’s stock.

Key Strategic Education News

Here are the key news stories impacting Strategic Education this week:

• Positive Sentiment: Two directors bought shares in several transactions from November 6–10. Michael Thawley purchased 1,890 shares and William Slocum 1,250 shares, for a combined investment of roughly $163,000. Insider buying can suggest confidence, though it is not a guarantee of improved performance. SEC filing for Thawley purchases SEC filing for Slocum purchases
• Neutral Sentiment: A report described a large increase in short interest but listed short interest and days to cover as zero, figures that conflict with that description. The data therefore offers no clear directional signal.
• Negative Sentiment: Wall Street Zen lowered STRA from “Buy” to “Hold,” adding to cautious analyst sentiment. The company also recently missed quarterly EPS expectations ($1.72 versus $1.95); shares are well below their 50- and 200-day moving averages and near their 52-week low, reflecting continued weakness. Wall Street Zen rating change

Strategic Education Company Profile

Strategic Education, Inc. is an education services company that provides postsecondary programs and workforce-focused learning services. Its U.S. institutions include Strayer University and Capella University, which offer undergraduate and graduate programs in fields such as business, technology, health care and education through online and campus-based instruction. Outside the United States, the company operates Torrens University Australia and other education institutions serving students in Australia and New Zealand.