Laureate Education (NASDAQ:LAUR) Stock Now Rated "Moderate Buy" by Sell-Side Brokerages

Key Points

• Laureate Education has a “Moderate Buy” consensus rating from seven analysts, with three buys, one strong buy, two holds and one sell. The average 12-month price target is $40.90, above the reported share price of $36.01.
• The company exceeded quarterly expectations, reporting $0.52 EPS and $485.1 million in revenue, while revenue increased 21.2% year over year. Analysts currently forecast full-year EPS of $2.12.
• Institutional investors own 96.27% of the stock, while insiders have recently sold shares, including a director’s $15.5 million sale. LAUR traded within a 12-month range of $24.98 to $40.92.

Laureate Education (NASDAQ:LAUR - Get Free Report) has earned an average recommendation of "Moderate Buy" from the seven brokerages that are presently covering the company, Marketbeat Ratings reports. One analyst has rated the stock with a sell rating, two have assigned a hold rating, three have given a buy rating and one has issued a strong buy rating on the company. The average 12-month target price among brokerages that have issued ratings on the stock in the last year is $40.90.

Several research analysts have commented on the stock. Barrington Research started coverage on shares of Laureate Education in a research note on Thursday, July 23rd. They set an "outperform" rating and a $45.00 price target on the stock. Morgan Stanley increased their target price on shares of Laureate Education from $34.50 to $36.50 and gave the company an "underweight" rating in a report on Thursday, October 15th. JPMorgan Chase & Co. cut shares of Laureate Education from an "overweight" rating to a "neutral" rating and set a $41.00 target price on the stock. in a research report on Monday, August 3rd. Finally, Weiss Ratings raised shares of Laureate Education from a "buy (b+)" rating to a "buy (a)" rating in a research note on Tuesday, October 13th.

Insiders Place Their Bets

In related news, Director Ian Snow sold 427,019 shares of the company's stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $36.26, for a total transaction of $15,483,708.94. Following the completion of the transaction, the director owned 1,646,324 shares in the company, valued at $59,695,708.24. This represents a 20.60% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. In the last three months, insiders sold 521,229 shares of company stock valued at $19,103,350. Company insiders own 1.50% of the company's stock.

Institutional Trading of Laureate Education

A number of hedge funds and other institutional investors have recently modified their holdings of LAUR. Ninety One UK Ltd boosted its stake in Laureate Education by 34.5% in the 3rd quarter. Ninety One UK Ltd now owns 3,842,476 shares of the company's stock worth $146,629,000 after purchasing an additional 984,671 shares in the last quarter. Principal Financial Group Inc. grew its holdings in shares of Laureate Education by 736.0% in the first quarter. Principal Financial Group Inc. now owns 726,646 shares of the company's stock worth $25,316,000 after acquiring an additional 639,726 shares during the period. Neumeier Poma Investment Counsel LLC purchased a new stake in shares of Laureate Education during the 2nd quarter valued at about $19,142,456. Bank of New York Mellon Corp grew its position in Laureate Education by 39.8% during the first quarter. Bank of New York Mellon Corp now owns 1,155,090 shares of the company's stock valued at $40,243,000 after buying an additional 328,609 shares during the period. Finally, Renaissance Technologies LLC raised its position in Laureate Education by 26.0% in the first quarter. Renaissance Technologies LLC now owns 751,400 shares of the company's stock worth $26,179,000 after acquiring an additional 155,200 shares during the period. 96.27% of the stock is owned by hedge funds and other institutional investors.

Laureate Education Price Performance

Shares of NASDAQ:LAUR opened at $36.01 on Friday. The company has a 50 day moving average of $37.67 and a 200 day moving average of $35.61. The stock has a market cap of $4.96 billion, a P/E ratio of 16.15, a P/E/G ratio of 1.14 and a beta of 0.41. Laureate Education has a 12 month low of $24.98 and a 12 month high of $40.92. The company has a current ratio of 0.71, a quick ratio of 0.71 and a debt-to-equity ratio of 0.14.

Laureate Education (NASDAQ:LAUR - Get Free Report) last released its quarterly earnings results on Thursday, October 29th. The company reported $0.52 earnings per share for the quarter, beating the consensus estimate of $0.48 by $0.04. Laureate Education had a return on equity of 23.54% and a net margin of 17.57%. The firm had revenue of $485.09 million for the quarter, compared to analysts' expectations of $480.16 million. During the same quarter last year, the firm posted $0.23 EPS. The company's revenue was up 21.2% compared to the same quarter last year. As a group, sell-side analysts forecast that Laureate Education will post 2.12 EPS for the current fiscal year.

More Laureate Education News

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

• Positive Sentiment: Quarterly results exceeded expectations. Revenue rose 21% year over year to $485.1 million, topping the $480.2 million consensus estimate, while adjusted EPS increased to $0.52 versus expectations of $0.48. Laureate Education Q3 earnings and revenues top estimates
• Positive Sentiment: Profitability and enrollment trends strengthened. Net income nearly tripled to $101.2 million from $34.4 million, adjusted EBITDA climbed to $146.8 million from $94.8 million, new enrollments increased 9%, and total enrollment rose 6%. Laureate Education third-quarter financial results
• Positive Sentiment: Shareholder returns received a boost. Laureate increased its share-repurchase authorization by $150 million, leaving approximately $225.2 million available for buybacks. Repurchases could support per-share earnings and provide demand for LAUR shares. Laureate increases share repurchase authorization
• Neutral Sentiment: Full-year guidance was reaffirmed. Management continues to expect 2026 revenue of $1.920 billion to $1.930 billion. The outlook remains intact, although the absence of a guidance increase may have disappointed investors following the earnings beat. Laureate reaffirms fiscal 2026 guidance
• Negative Sentiment: Market reaction was muted despite the strong quarter. Investors may have been looking for an outlook upgrade or additional upside to estimates; consequently, the stock decreased as the results were assessed against elevated expectations.

About Laureate Education

Laureate Education, Inc is a higher education company that operates a network of universities and other learning institutions. Its institutions provide undergraduate and graduate degree programs, professional education, and online and hybrid learning options across fields such as business, health sciences, engineering, technology, and the social sciences.

The company currently serves students primarily in Mexico and Peru. Its Mexican institutions include Universidad del Valle de México (UVM) and Universidad Tecnológica de México (UNITEC), while its Peruvian institutions include Universidad Peruana de Ciencias Aplicadas (UPC) and Universidad Privada del Norte (UPN).

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