Strategic Education (NASDAQ:STRA) Stock Bumped Down to Strong Sell by Zacks Research

Zacks Research cut shares of Strategic Education (NASDAQ:STRA) from a hold rating to a strong sell rating in a research note published on Monday morning,Zacks reports.

A number of other analysts also recently issued reports on STRA. BMO Capital Markets downgraded Strategic Education from an “outperform” rating to a “market perform” rating and reduced their price objective for the stock from $95.00 to $66.00 in a research note on Friday. Wall Street Zen downgraded Strategic Education from a “buy” rating to a “hold” rating in a research report on Saturday. Truist Financial raised their target price on shares of Strategic Education from $80.00 to $90.00 and gave the company a “hold” rating in a report on Thursday, July 30th. 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. Finally, Barrington Research cut shares of Strategic Education from an “outperform” rating to a “hold” rating in a research report on Friday, November 6th. Five analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Reduce” and an average price target of $87.00.

Strategic Education Trading Up 3.1%

Shares of STRA stock opened at $54.59 on Monday. Strategic Education has a 12-month low of $50.70 and a 12-month high of $89.73. The stock’s 50-day moving average price is $77.73 and its 200-day moving average price is $79.71. The stock has a market capitalization of $1.19 billion, a price-to-earnings ratio of 321.12, a price-to-earnings-growth ratio of 0.73 and a beta of 0.51.

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

Strategic Education Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, December 7th. Investors of record on Monday, November 30th will be given a $0.60 dividend. The ex-dividend date is Monday, November 30th. This represents a $2.40 dividend on an annualized basis and a yield of 4.4%. Strategic Education’s dividend payout ratio (DPR) is currently 1,411.76%.

Insider Buying and Selling at Strategic Education

In other news, Director William J. Slocum bought 1,000 shares of Strategic Education stock in a transaction dated Friday, November 6th. The shares were acquired at an average price of $52.00 per share, with a total value of $52,000.00. Following the completion of the purchase, the director owned 8,815 shares in the company, valued at $458,380. The trade was a 12.80% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Michael Thawley bought 950 shares of the stock in a transaction dated Friday, November 6th. The stock was purchased at an average price of $51.42 per share, with a total value of $48,849.00. Following the acquisition, the director directly owned 13,104 shares in the company, valued at approximately $673,807.68. The trade was a 7.82% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have acquired 3,140 shares of company stock valued at $163,118 over the last ninety days. 3.60% of the stock is owned by insiders.

Institutional Trading of Strategic Education

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Focus Advisor Solutions LLC lifted its stake in 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 worth $345,000 after purchasing an additional 1,663 shares during the last quarter. Hudson Portfolio Management LLC grew 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 last quarter. Public Sector Pension Investment Board grew 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 last quarter. Global Retirement Partners LLC raised its holdings in shares of Strategic Education by 16,250.0% in the third quarter. Global Retirement Partners LLC now owns 6,540 shares of the health services provider’s stock worth $508,000 after buying an additional 6,500 shares during the period. Finally, Edgestream Partners L.P. purchased a new stake in shares of Strategic Education in the third quarter worth approximately $256,000. 93.27% of the stock is owned by hedge funds and other institutional investors.

Strategic Education News Summary

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

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.