Stride (NYSE:LRN) Stock Rating Raised to "Buy" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Stride from “Hold” to “Buy.” Analysts overall rate the stock “Moderate Buy,” with an average price target of $106.25.
• Stride beat quarterly estimates, reporting EPS of $1.37 versus $1.07 expected and revenue of $639.38 million versus $612.25 million; revenue rose 3% year over year.
• Company directors made substantial purchases in early November, and insiders bought 405,045 shares worth about $31.5 million over the past quarter.

Stride (NYSE:LRN - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a report issued on Saturday, Wall Street Zen reports.

Several other research analysts have also recently weighed in on the company. BMO Capital Markets lowered their target price on Stride from $93.00 to $90.00 and set a "market perform" rating on the stock in a report on Monday, October 5th. Barrington Research cut their price objective on Stride from $125.00 to $115.00 and set an "outperform" rating on the stock in a research note on Friday, October 23rd. Weiss Ratings raised shares of Stride from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, October 16th. William Blair cut Stride from an "outperform" rating to a "market perform" rating in a report on Thursday, July 30th. Finally, Zacks Research raised shares of Stride from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, October 28th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, Stride presently has a consensus rating of "Moderate Buy" and an average price target of $106.25.

Stride Price Performance

Shares of NYSE LRN opened at $75.09 on Friday. The firm has a market cap of $3.16 billion, a P/E ratio of 10.36, a price-to-earnings-growth ratio of 0.42 and a beta of 0.16. The business's 50 day moving average is $80.56 and its 200-day moving average is $85.91. The company has a current ratio of 2.56, a quick ratio of 2.53 and a debt-to-equity ratio of 0.06. Stride has a 1-year low of $60.61 and a 1-year high of $103.67.

Stride (NYSE:LRN - Get Free Report) last issued its quarterly earnings results on Tuesday, October 20th. The company reported $1.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.07 by $0.30. Stride had a net margin of 13.18% and a return on equity of 22.06%. The company had revenue of $639.38 million during the quarter, compared to analyst estimates of $612.25 million. During the same quarter last year, the business posted $1.40 EPS. Stride's quarterly revenue was up 3.0% compared to the same quarter last year. Equities research analysts predict that Stride will post 9.04 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Brian A. Shepherd acquired 12,000 shares of the firm's stock in a transaction that occurred on Monday, November 2nd. The stock was purchased at an average price of $76.69 per share, with a total value of $920,280.00. Following the purchase, the director owned 13,094 shares of the company's stock, valued at approximately $1,004,178.86. This trade represents a 1,096.89% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Dylan G. Haggart bought 137,500 shares of Stride stock in a transaction dated Monday, November 2nd. The shares were bought at an average price of $77.12 per share, for a total transaction of $10,604,000.00. Following the completion of the transaction, the director directly owned 2,091,403 shares of the company's stock, valued at $161,288,999.36. This represents a 7.04% increase in their position. The SEC filing for this purchase provides additional information. Over the last quarter, insiders purchased 405,045 shares of company stock valued at $31,483,496. 3.00% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Stride

Institutional investors and hedge funds have recently bought and sold shares of the stock. Jupiter Topco LLC purchased a new stake in Stride in the second quarter valued at approximately $199,715,000. Janus Henderson Group PLC raised its stake in shares of Stride by 61.0% in the 1st quarter. Janus Henderson Group PLC now owns 2,277,279 shares of the company's stock valued at $200,799,000 after purchasing an additional 862,849 shares in the last quarter. Dimensional Fund Advisors LP increased its holdings in shares of Stride by 5.5% during the first quarter. Dimensional Fund Advisors LP now owns 1,750,646 shares of the company's stock valued at $154,339,000 after purchasing an additional 90,851 shares during the period. Aberdeen Group plc bought a new stake in Stride in the 3rd quarter valued at $135,610,000. Finally, Principal Financial Group Inc. raised its position in shares of Stride by 40.8% in the 1st quarter. Principal Financial Group Inc. now owns 1,034,047 shares of the company's stock valued at $91,172,000 after acquiring an additional 299,756 shares during the period. 98.24% of the stock is owned by hedge funds and other institutional investors.

About Stride

Stride, Inc is an education technology company that provides online and blended learning programs for K-12 students. The company partners with public school districts, charter schools and other education organizations to deliver digital curricula, instructional software, teaching support and student services. Its offerings are designed to support full-time virtual schools, supplemental courses and traditional schools incorporating online learning.

Stride also provides career-focused education through programs that combine academic instruction with career exploration, technical training and industry-aligned learning opportunities.

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