Zacks Investment Research Upgrades Capella Education (CPLA) to Buy

Capella Education (NASDAQ:CPLA) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Wednesday. The firm currently has a $98.00 price objective on the stock. Zacks Investment Research‘s price objective would indicate a potential upside of 9.74% from the stock’s previous close.

According to Zacks, “Capella’s first-quarter earnings surpassed the Zacks Consensus Estimate, while revenues missed the same. The bottom line increased 27.7% year over year. Revenues improved a meager 0.2% year over year. Capella University’s total active enrollment fell 1.6% and new enrollment grew 1.8% on a year-over-year basis. Importantly, Strayer Education and Capella agreed to merge in a deal valued at $1.9 billion on Oct 30. The companies will combine in an all-stock deal of equal transactions, expected to close in the third quarter of 2018. Post completion, Capella’s shareholders will own approximately 48% of the combined entity on a fully-diluted basis. The merger is likely to ensure student success and positive employment outcomes.”

CPLA has been the subject of a number of other research reports. BMO Capital Markets lowered their price objective on shares of Capella Education from $98.00 to $83.00 and set an “outperform” rating for the company in a research report on Friday, March 2nd. TheStreet cut shares of Capella Education from a “b” rating to a “c+” rating in a research report on Thursday, March 1st. BidaskClub cut shares of Capella Education from a “buy” rating to a “hold” rating in a research report on Saturday, April 28th. Barrington Research restated a “hold” rating on shares of Capella Education in a research report on Monday, March 5th. Finally, First Analysis upgraded shares of Capella Education from an “equal weight” rating to an “overweight” rating and upped their price objective for the company from $92.00 to $98.00 in a research report on Sunday, March 4th. One research analyst has rated the stock with a sell rating, two have issued a hold rating and four have assigned a buy rating to the stock. The stock has an average rating of “Hold” and an average target price of $97.25.

Shares of Capella Education opened at $89.30 on Wednesday, Marketbeat reports. The firm has a market cap of $1.03 billion, a price-to-earnings ratio of 23.90, a price-to-earnings-growth ratio of 2.00 and a beta of 0.36. Capella Education has a 52 week low of $88.40 and a 52 week high of $88.65.

Capella Education (NASDAQ:CPLA) last released its quarterly earnings data on Wednesday, May 2nd. The company reported $1.20 EPS for the quarter, beating the Zacks’ consensus estimate of $1.17 by $0.03. Capella Education had a net margin of 5.92% and a return on equity of 19.78%. The business had revenue of $112.00 million during the quarter, compared to analysts’ expectations of $112.92 million. During the same quarter in the prior year, the company earned $0.94 EPS. The firm’s quarterly revenue was up .2% on a year-over-year basis. equities research analysts forecast that Capella Education will post 4.4 earnings per share for the current fiscal year.

A number of hedge funds have recently added to or reduced their stakes in CPLA. Schwab Charles Investment Management Inc. increased its holdings in Capella Education by 2.9% during the 4th quarter. Schwab Charles Investment Management Inc. now owns 97,232 shares of the company’s stock worth $7,526,000 after purchasing an additional 2,764 shares in the last quarter. American Capital Management Inc. boosted its stake in shares of Capella Education by 6.6% during the 4th quarter. American Capital Management Inc. now owns 49,215 shares of the company’s stock worth $3,809,000 after buying an additional 3,045 shares during the last quarter. Assenagon Asset Management S.A. acquired a new position in shares of Capella Education during the 4th quarter worth about $3,930,000. Dupont Capital Management Corp acquired a new position in shares of Capella Education during the 4th quarter worth about $1,695,000. Finally, Teacher Retirement System of Texas acquired a new position in shares of Capella Education during the 4th quarter worth about $309,000. Hedge funds and other institutional investors own 94.26% of the company’s stock.

About Capella Education

Capella Education Company, through its subsidiaries, provides online postsecondary education and job-ready skills services in the United States. Its Post-Secondary segment offers various doctoral, master's, and bachelor's programs primarily for working adults in public service leadership, nursing and health sciences, psychology, business and technology, counseling and human services, and education markets; and courses that are eligible for transfer into credit at approximately 2,000 colleges and universities.

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