Strategic Education (NASDAQ:STRA) Stock Moved Down to "Market Perform" by Barrington Research

Key Points

• Barrington Research downgraded Strategic Education from “outperform” to “market perform.” Other analysts also lowered ratings, while MarketBeat’s consensus remains “hold” with an $87 price target.
• Third-quarter revenue rose 1.6% year over year to $325.1 million, but earnings of $1.72 per share missed estimates; a reported $134 million Torrens writedown contributed to the shortfall.
• Shares fell $6.21 on Friday to $52.27. The company declared a $0.60 quarterly dividend, and Ademi LLP announced an investigation into potential securities-fraud claims—an investigation announcement, not a finding of wrongdoing.

Strategic Education (NASDAQ:STRA - Get Free Report) was downgraded by Barrington Research from an "outperform" rating to a "market perform" rating in a report issued on Friday, Benzinga reports.

STRA has been the subject of a number of other research reports. Wall Street Zen raised shares of Strategic Education from a "hold" rating to a "buy" rating in a research report on Saturday, August 1st. William Blair cut 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 decreased their target price for the stock from $95.00 to $66.00 in a research report on Friday. Weiss Ratings lowered Strategic Education from a "hold (c+)" rating to a "hold (c)" rating in a research note on Wednesday, October 28th. Finally, Truist Financial upped their price target on Strategic Education from $80.00 to $90.00 and gave the company a "hold" rating in a report on Thursday, July 30th. Six equities research analysts have rated the stock with a Hold rating. According to MarketBeat, Strategic Education currently has a consensus rating of "Hold" and a consensus price target of $87.00.

Strategic Education Price Performance

STRA stock traded down $6.21 on Friday, reaching $52.27. 401,219 shares of the company were exchanged, compared to its average volume of 288,790. Strategic Education has a 12 month low of $51.01 and a 12 month high of $89.73. The stock's fifty day moving average price is $79.60 and its 200 day moving average price is $80.19. The firm has a market capitalization of $1.16 billion, a PE ratio of 8.73, a PEG ratio of 0.69 and a beta of 0.51.

Strategic Education (NASDAQ:STRA - Get Free Report) last issued 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). The company had revenue of $325.07 million during the quarter, compared to the consensus estimate of $326.55 million. Strategic Education had a net margin of 10.46% and a return on equity of 8.98%. Strategic Education's revenue for the quarter was up 1.6% on a year-over-year basis. During the same period last year, the company earned $1.64 earnings per share. As a group, research analysts expect that Strategic Education will post 7.23 EPS for the current fiscal year.

Hedge Funds Weigh In On Strategic Education

A number of hedge funds have recently made changes to their positions in the business. Axiom Investment Management LLC acquired a new position in shares of Strategic Education in the 1st quarter worth approximately $25,000. Heritage Family Offices LLP bought a new stake in Strategic Education during the 3rd quarter worth approximately $25,000. Rockefeller Capital Management L.P. increased its holdings in Strategic Education by 305.3% during the 4th quarter. Rockefeller Capital Management L.P. now owns 616 shares of the health services provider's stock valued at $49,000 after purchasing an additional 464 shares in the last quarter. Allworth Financial LP acquired a new stake in Strategic Education during the 2nd quarter valued at $49,000. Finally, Public Employees Retirement System of Ohio bought a new position in Strategic Education in the 2nd quarter valued at $51,000. Institutional investors and hedge funds own 93.27% of the company's stock.

Key Stories Impacting Strategic Education

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

• Positive Sentiment: The company declared a quarterly dividend of $0.60 per share, or $2.40 annualized, representing an indicated yield of about 4.5%. Shareholders of record November 30 are scheduled to be paid December 7.
• Neutral Sentiment: Third-quarter revenue increased 1.6% year over year to $325.1 million, supported by Education Technology Services and higher U.S. higher-education revenue per student, but came in slightly below analysts’ expectations. Strategic Education Q3 2026 results
• Negative Sentiment: Adjusted context aside, reported Q3 earnings of $1.72 per share missed consensus estimates of roughly $1.92–$1.95. Coverage points to a $134 million Torrens writedown as a major factor in the earnings miss, weighing on sentiment. Strategic Education Q3 earnings and Torrens writedown
• Negative Sentiment: Ademi LLP said it is investigating potential securities-fraud claims against Strategic Education. The announcement is not a finding of wrongdoing, but it may add uncertainty for investors following the stock’s steep decline. 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.

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