Stride (NYSE:LRN) Stock Rating Raised to Strong-Buy at Zacks Research

Key Points

• Zacks Research upgraded Stride from “hold” to “strong buy,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $106.25.
• Stride exceeded quarterly expectations, reporting $1.37 in EPS versus the $1.07 estimate and revenue of $639.38 million versus $612.25 million expected; revenue increased 3% year over year.
• Insiders purchased 154,988 shares worth approximately $12.24 million in the past quarter, including a director’s $7.45 million purchase, while institutional investors own 98.24% of the stock.

Stride (NYSE:LRN - Get Free Report) was upgraded by analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research report issued on Wednesday, Zacks reports.

A number of other equities research analysts have also recently commented on the stock. Barrington Research reduced their target price on shares of Stride from $125.00 to $115.00 and set an "outperform" rating for the company in a research report on Friday, October 23rd. Weiss Ratings raised shares of Stride from a "hold (c)" rating to a "hold (c+)" rating in a research note on Friday, October 16th. BMO Capital Markets lowered their price target on shares of Stride from $93.00 to $90.00 and set a "market perform" rating on the stock in a research report on Monday, October 5th. Finally, William Blair cut shares of Stride from an "outperform" rating to a "market perform" rating in a research note on Thursday, July 30th. 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 stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $106.25.

Stride Stock Performance

NYSE LRN opened at $80.53 on Wednesday. The company has a market cap of $3.39 billion, a PE ratio of 11.11, a price-to-earnings-growth ratio of 0.44 and a beta of 0.14. The stock's 50 day simple moving average is $81.55 and its 200-day simple moving average is $85.70. Stride has a 1-year low of $60.61 and a 1-year high of $103.67. The company has a debt-to-equity ratio of 0.06, a current ratio of 2.56 and a quick ratio of 2.53.

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 analysts' consensus estimates of $1.07 by $0.30. The firm had revenue of $639.38 million for the quarter, compared to analyst estimates of $612.25 million. Stride had a return on equity of 22.06% and a net margin of 13.18%. The business's revenue was up 3.0% on a year-over-year basis. During the same period in the previous year, the company posted $1.40 earnings per share. As a group, equities research analysts anticipate that Stride will post 9.04 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Dylan Haggart bought 95,008 shares of the company's stock in a transaction on Monday, October 26th. The stock was bought at an average cost of $78.44 per share, for a total transaction of $7,452,427.52. Following the acquisition, the director directly owned 1,898,911 shares in the company, valued at $148,950,578.84. This represents a 5.27% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Insiders acquired a total of 154,988 shares of company stock worth $12,240,185 over the last quarter. Insiders own 3.00% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. MGO One Seven LLC purchased a new stake in Stride in the 3rd quarter valued at about $225,000. VIRGINIA RETIREMENT SYSTEMS ET Al boosted its stake in Stride by 2.8% during the third quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 29,610 shares of the company's stock worth $2,309,000 after buying an additional 800 shares during the period. John Boyer Inc. purchased a new position in Stride during the third quarter worth about $67,000. Signaturefd LLC boosted its stake in Stride by 157.2% during the third quarter. Signaturefd LLC now owns 1,219 shares of the company's stock worth $95,000 after buying an additional 745 shares during the period. Finally, Sterling Capital Management LLC increased its position in shares of Stride by 1,119.3% during the third quarter. Sterling Capital Management LLC now owns 4,609 shares of the company's stock valued at $359,000 after acquiring an additional 4,231 shares during the last quarter. Hedge funds and other institutional investors own 98.24% of the company's stock.

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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