Strategic Education (NASDAQ:STRA) Rating Lowered to “Strong Sell” at Zacks Research

by · The Markets Daily

Strategic Education (NASDAQ:STRA – Get Free Report) was downgraded by analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued on Monday, Zacks reports.

A number of other equities analysts have also recently issued reports on STRA. Barrington Research cut shares of Strategic Education from an “outperform” rating to a “hold” rating in a research report on Friday, November 6th. Wall Street Zen lowered shares of Strategic Education from a “buy” rating to a “hold” rating in a research report on Saturday. Truist Financial raised their price objective 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. BMO Capital Markets cut shares of Strategic Education from an “outperform” rating to a “market perform” rating and dropped their price objective for the stock from $95.00 to $66.00 in a research note on Friday. Finally, William Blair downgraded Strategic Education to a “market perform” rating in a research report on Friday. Five equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Reduce” and an average price target of $87.00.

Read Our Latest Report on STRA

Strategic Education Stock Up 3.1%

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

Strategic Education (NASDAQ:STRA – Get Free Report) last released its quarterly earnings data on Thursday, November 5th. The health services provider reported $1.72 EPS for the quarter, missing the consensus estimate of $1.95 by ($0.23). The business had revenue of $325.07 million during the quarter, compared to analysts’ expectations of $326.55 million. Strategic Education had a return on equity of 9.13% and a net margin of 0.74%. Strategic Education’s quarterly revenue was up 1.6% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.64 earnings per share. As a group, equities analysts anticipate that Strategic Education will post 7.25 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Michael Thawley bought 940 shares of the business’s stock in a transaction that occurred on Tuesday, November 10th. The stock was purchased at an average price of $52.68 per share, with a total value of $49,519.20. Following the purchase, the director owned 14,044 shares of the company’s stock, valued at $739,837.92. This trade represents a 7.17% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through this link. Also, Director William J. Slocum bought 1,000 shares of Strategic Education stock in a transaction on Friday, November 6th. The stock was purchased at an average price of $52.00 per share, for a total transaction of $52,000.00. Following the completion of the acquisition, the director owned 8,815 shares in the company, valued at $458,380. This represents a 12.80% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last ninety days, insiders have purchased 3,140 shares of company stock worth $163,118. Corporate insiders own 3.60% of the company’s stock.

Institutional Investors Weigh In On Strategic Education

Hedge funds and other institutional investors have recently modified their holdings of the company. Focus Advisor Solutions LLC raised its position in shares of Strategic Education by 59.8% in the third quarter. Focus Advisor Solutions LLC now owns 4,443 shares of the health services provider’s stock valued at $345,000 after buying an additional 1,663 shares during the last quarter. Hudson Portfolio Management LLC lifted its stake in shares of Strategic Education by 35.5% during the third quarter. Hudson Portfolio Management LLC now owns 3,830 shares of the health services provider’s stock valued at $297,000 after buying an additional 1,003 shares during the period. Public Sector Pension Investment Board lifted its stake in shares of Strategic Education by 10.8% during the third quarter. Public Sector Pension Investment Board now owns 263,439 shares of the health services provider’s stock valued at $21,863,000 after buying an additional 25,658 shares during the period. Global Retirement Partners LLC lifted its stake in shares of Strategic Education by 16,250.0% during the third quarter. Global Retirement Partners LLC now owns 6,540 shares of the health services provider’s stock valued at $508,000 after buying an additional 6,500 shares during the period. Finally, Edgestream Partners L.P. acquired a new stake in Strategic Education during the third quarter worth approximately $256,000. 93.27% of the stock is currently owned by hedge funds and other institutional investors.

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

About Strategic Education

(Get Free Report)

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.

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