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

Key Points

• Zacks Research downgraded Strategic Education from “Hold” to “Strong Sell.” Analyst sentiment is cautious overall, with MarketBeat reporting an average “Reduce” rating and a $87 consensus price target.
• The company reported quarterly EPS of $1.72, below the $1.95 consensus estimate, and revenue of $325.07 million, also slightly under expectations. Revenue nevertheless increased 1.6% year over year.
• Two directors made stock purchases in early November, investing a combined roughly $101,000 in the transactions detailed in the article; insiders bought about $163,000 of shares over the past 90 days.

Strategic Education (NASDAQ:STRA - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a note issued to investors on Monday, Zacks reports.

STRA has been the topic of a number of other reports. Barrington Research downgraded shares of Strategic Education from an "outperform" rating to a "hold" rating in a research report on Friday, November 6th. Wall Street Zen cut shares of Strategic Education from a "buy" rating to a "hold" rating in a research report on Saturday. Truist Financial increased their price objective 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 note on Wednesday, October 28th. Finally, BMO Capital Markets cut shares of Strategic Education from an "outperform" rating to a "market perform" rating and reduced their price objective for the company from $95.00 to $66.00 in a research note on Friday. Five investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Reduce" and a consensus target price of $87.00.

Strategic Education Stock Up 3.1%

Shares of STRA 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 firm has a market capitalization of $1.19 billion, a PE ratio of 321.12, a price-to-earnings-growth ratio of 0.73 and a beta of 0.51. The stock's fifty day simple moving average is $77.73 and its 200-day simple moving average is $79.71.

Strategic Education (NASDAQ:STRA - Get Free Report) last posted its quarterly earnings results on Thursday, November 5th. The health services provider reported $1.72 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.95 by ($0.23). The firm 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 0.74% and a return on equity of 9.13%. Strategic Education's revenue was up 1.6% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.64 EPS. Analysts anticipate that Strategic Education will post 7.25 EPS for the current year.

Insider Activity

In related news, Director William J. Slocum bought 1,000 shares of the firm's stock in a transaction dated Friday, November 6th. The stock was bought at an average cost of $52.00 per share, for a total transaction of $52,000.00. Following the transaction, the director owned 8,815 shares of the company's stock, valued at $458,380. This represents a 12.80% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Michael Thawley purchased 950 shares of the stock in a transaction dated Friday, November 6th. The stock was bought at an average cost of $51.42 per share, with a total value of $48,849.00. Following the completion of the purchase, the director owned 13,104 shares in the company, valued at $673,807.68. The trade was a 7.82% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have bought a total of 3,140 shares of company stock valued at $163,118 over the last 90 days. Corporate insiders own 3.60% of the company's stock.

Institutional Investors Weigh In On Strategic Education

Large investors have recently bought and sold shares of the company. Hsbc Holdings PLC acquired a new position in shares of Strategic Education in the 2nd quarter valued at $1,594,000. Bank of America Corp DE acquired a new stake in Strategic Education during the 2nd quarter worth $6,974,000. BlackRock Inc. acquired a new stake in Strategic Education during the 2nd quarter worth $291,189,000. PDT Partners LLC acquired a new stake in Strategic Education during the 2nd quarter worth $3,521,000. Finally, Empowered Funds LLC bought a new position in Strategic Education during the second quarter worth about $6,107,000. Institutional investors own 93.27% of the company's stock.

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.

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