Strategic Education (NASDAQ:STRA) Downgraded by Wall Street Zen to “Hold”

Wall Street Zen cut shares of Strategic Education (NASDAQ:STRA) from a buy rating to a hold rating in a research report released on Saturday morning,Wall Street Zen reports.

Several other equities research analysts have also commented on the stock. William Blair lowered shares of Strategic Education to a “market perform” rating in a research note on Friday. BMO Capital Markets downgraded Strategic Education from an “outperform” rating to a “market perform” rating and cut their target price for the stock from $95.00 to $66.00 in a research note on Friday. Barrington Research lowered Strategic Education from an “outperform” rating to a “hold” rating in a report on Friday. Truist Financial increased their price target on Strategic Education from $80.00 to $90.00 and gave the company a “hold” rating in a research report on Thursday, July 30th. Finally, Weiss Ratings lowered Strategic Education from a “hold (c+)” rating to a “hold (c)” rating in a report on Wednesday, October 28th. Six equities research analysts have rated the stock with a Hold rating. Based on data from MarketBeat, Strategic Education presently has a consensus rating of “Hold” and a consensus price target of $87.00.

Strategic Education Stock Performance

Shares of STRA opened at $52.20 on Friday. The firm has a market capitalization of $1.16 billion, a P/E ratio of 307.06, a P/E/G ratio of 0.48 and a beta of 0.51. The stock has a 50 day moving average price of $78.93 and a two-hundred day moving average price of $80.04. Strategic Education has a 52 week low of $51.01 and a 52 week high of $89.73.

Strategic Education (NASDAQ:STRA) last released 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). Strategic Education had a net margin of 0.74% and a return on equity of 9.13%. The firm had revenue of $325.07 million for the quarter, compared to the consensus estimate of $326.55 million. During the same period in the previous year, the business earned $1.64 earnings per share. The firm’s revenue for the quarter was up 1.6% on a year-over-year basis. On average, equities analysts forecast that Strategic Education will post 7.23 earnings per share for the current year.

Strategic Education Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, December 7th. Shareholders of record on Monday, November 30th will be paid a $0.60 dividend. The ex-dividend date is Monday, November 30th. This represents a $2.40 annualized dividend and a dividend yield of 4.6%. Strategic Education’s payout ratio is presently 40.00%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Lazard Asset Management LLC boosted its holdings in Strategic Education by 0.9% in the first quarter. Lazard Asset Management LLC now owns 23,741 shares of the health services provider’s stock valued at $1,970,000 after purchasing an additional 207 shares during the last quarter. Allworth Financial LP raised its stake in shares of Strategic Education by 52.4% during the 2nd quarter. Allworth Financial LP now owns 640 shares of the health services provider’s stock valued at $49,000 after buying an additional 220 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in shares of Strategic Education by 0.6% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 40,489 shares of the health services provider’s stock valued at $3,102,000 after buying an additional 227 shares during the last quarter. Axiom Investment Management LLC purchased a new position in shares of Strategic Education during the 1st quarter valued at about $25,000. Finally, MSH Capital Advisors LLC lifted its holdings in shares of Strategic Education by 2.8% in the 3rd quarter. MSH Capital Advisors LLC now owns 11,413 shares of the health services provider’s stock valued at $886,000 after buying an additional 309 shares during the period. Institutional investors own 93.27% of the company’s stock.

More Strategic Education News

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

• Positive Sentiment: Strategic Education declared a quarterly dividend of $0.60 per share, equivalent to $2.40 annually and a reported yield of 4.5%. The ex-dividend date is November 30, and payment is scheduled for December 7.
• Neutral Sentiment: Third-quarter revenue rose 1.6% year over year to $325.1 million, supported by Education Technology Services and higher U.S. Higher Education revenue per student, but was slightly below analyst expectations. Strategic Education Q3 results
• Negative Sentiment: Adjusted expectations were not met: Q3 EPS of $1.72 fell short of consensus estimates around $1.92–$1.95. Coverage also highlighted a $134 million Torrens writedown, a significant drag on the results and a likely source of investor concern. Strategic Education Q3 earnings and writedown
• Negative Sentiment: Barrington Research lowered its rating on STRA from “outperform” to “market perform,” signaling less optimism about the shares. Barrington Research ratings
• Negative Sentiment: Ademi LLP said it is investigating potential securities-fraud claims involving the company. This is an investigation announcement, not a finding of wrongdoing, but it adds a legal and reputational uncertainty for investors. Ademi LLP investigation announcement

Strategic Education Company Profile

Strategic Education, Inc (NASDAQ: STRA) is an education services company that provides postsecondary programs through Strayer University and Capella University. Its institutions serve working adults and other nontraditional students through online and campus-based learning options.

Strayer University offers undergraduate and graduate degree programs, professional certificates and other career-focused educational programs in areas such as business, information technology, health services and criminal justice.