Strategic Education (NASDAQ:STRA) Shares Gap Down After Earnings Miss

Strategic Education Inc. (NASDAQ:STRA) gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $83.62, but opened at $74.82. Strategic Education shares last traded at $73.7250, with a volume of 114,166 shares.

The health services provider reported $1.42 EPS for the quarter, missing analysts’ consensus estimates of $1.75 by ($0.33). The business had revenue of $305.93 million during the quarter, compared to analysts’ expectations of $329.81 million. Strategic Education had a net margin of 9.98% and a return on equity of 8.75%. Strategic Education’s revenue for the quarter was up .8% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.30 EPS.

Strategic Education Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, March 16th. Stockholders of record on Monday, March 9th were paid a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date of this dividend was Monday, March 9th. Strategic Education’s payout ratio is 44.28%.

Analyst Upgrades and Downgrades

STRA has been the subject of a number of research analyst reports. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Strategic Education in a research report on Tuesday. Barrington Research reissued an “outperform” rating and issued a $105.00 target price on shares of Strategic Education in a research report on Monday, January 26th. Truist Financial cut Strategic Education from a “buy” rating to a “hold” rating and decreased their price target for the stock from $95.00 to $85.00 in a research note on Tuesday, March 24th. Wall Street Zen raised Strategic Education from a “buy” rating to a “strong-buy” rating in a research note on Saturday, April 18th. Finally, Zacks Research upgraded Strategic Education from a “hold” rating to a “strong-buy” rating in a report on Monday, March 2nd. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, Strategic Education presently has a consensus rating of “Moderate Buy” and an average price target of $92.67.

Insider Buying and Selling at Strategic Education

In other Strategic Education news, General Counsel Lizette Benedi Herraiz sold 7,598 shares of the business’s stock in a transaction on Friday, March 13th. The shares were sold at an average price of $79.97, for a total value of $607,612.06. Following the completion of the transaction, the general counsel owned 58,562 shares in the company, valued at $4,683,203.14. The trade was a 11.48% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CFO Daniel Wayne Jackson sold 13,000 shares of the stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $82.37, for a total value of $1,070,810.00. Following the completion of the sale, the chief financial officer owned 100,096 shares in the company, valued at approximately $8,244,907.52. The trade was a 11.49% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 62,420 shares of company stock worth $4,843,218. 3.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Strategic Education

A number of institutional investors and hedge funds have recently made changes to their positions in STRA. Blue Trust Inc. acquired a new stake in Strategic Education in the third quarter valued at approximately $25,000. Allworth Financial LP increased its position in shares of Strategic Education by 88.5% in the 3rd quarter. Allworth Financial LP now owns 294 shares of the health services provider’s stock valued at $25,000 after purchasing an additional 138 shares during the last quarter. Hantz Financial Services Inc. raised its holdings in shares of Strategic Education by 154.2% in the 4th quarter. Hantz Financial Services Inc. now owns 333 shares of the health services provider’s stock valued at $27,000 after purchasing an additional 202 shares in the last quarter. Osaic Holdings Inc. lifted its position in shares of Strategic Education by 85.2% during the 2nd quarter. Osaic Holdings Inc. now owns 387 shares of the health services provider’s stock worth $33,000 after purchasing an additional 178 shares during the last quarter. Finally, Sankala Group LLC acquired a new position in shares of Strategic Education during the fourth quarter worth $37,000. 93.27% of the stock is owned by institutional investors and hedge funds.

Strategic Education Price Performance

The stock has a market cap of $1.66 billion, a price-to-earnings ratio of 13.51, a P/E/G ratio of 0.80 and a beta of 0.53. The business’s 50 day moving average is $80.72 and its 200 day moving average is $80.70.

Strategic Education Company Profile

Strategic Education, Inc is a publicly traded higher education services holding company headquartered in Herndon, Virginia. Through its primary operating subsidiaries, Strayer University and Capella University, the company delivers degree programs and professional development opportunities to working adults. Its offerings span undergraduate and graduate degrees, certificates, continuing education, and workforce training in fields such as business, technology, health services, education, and public administration.

Strayer University, with a network of physical campuses across the United States complemented by an online platform, provides associate’s through doctoral degrees designed to accommodate non-traditional students.