Strategic Education Inc. (NASDAQ:STRA) Stock Now Rated "Hold" by Wall Street Analysts

Key Points

• Analyst consensus is “Hold”: Three of five analysts rate Strategic Education shares a hold, while two recommend buying. The average 12-month price target is $96.67 versus the reported share price of $82.39.
• Institutional ownership is substantial: Institutions and hedge funds own 93.27% of the stock, with BlackRock initiating an approximately $291.2 million position and several other investors increasing their stakes.
• Quarterly results fell slightly short of expectations: Strategic Education reported $1.76 in EPS and $321.6 million in revenue, missing estimates of $1.80 and $327.55 million, respectively, though revenue increased 4.9% year over year. The company also pays a $0.60 quarterly dividend, equivalent to a 2.9% yield.

Shares of Strategic Education Inc. (NASDAQ:STRA - Get Free Report) have received an average rating of "Hold" from the five ratings firms that are presently covering the stock, MarketBeat reports. Three analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. The average 1-year target price among analysts that have updated their coverage on the stock in the last year is $96.67.

A number of analysts recently weighed in on the stock. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Strategic Education in a research report on Friday, July 17th. Barrington Research set a $105.00 price objective on Strategic Education in a research report on Wednesday, July 29th. Truist Financial boosted their price objective on Strategic Education from $80.00 to $90.00 and gave the stock a "hold" rating in a research note on Thursday, July 30th. Wall Street Zen raised Strategic Education from a "hold" rating to a "buy" rating in a research report on Saturday, August 1st. Finally, BMO Capital Markets decreased their target price on Strategic Education from $100.00 to $95.00 and set an "outperform" rating for the company in a research report on Monday.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in STRA. BlackRock Inc. purchased a new position in shares of Strategic Education during the 2nd quarter valued at approximately $291,189,000. Dimensional Fund Advisors LP grew its position in shares of Strategic Education by 0.5% during the first quarter. Dimensional Fund Advisors LP now owns 1,458,740 shares of the health services provider's stock worth $121,017,000 after buying an additional 7,346 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its stake in shares of Strategic Education by 30.6% in the first quarter. Arrowstreet Capital Limited Partnership now owns 454,509 shares of the health services provider's stock worth $37,706,000 after buying an additional 106,487 shares during the last quarter. Algert Global LLC increased its stake in shares of Strategic Education by 26.6% in the second quarter. Algert Global LLC now owns 275,342 shares of the health services provider's stock worth $21,097,000 after buying an additional 57,824 shares during the last quarter. Finally, Bank of New York Mellon Corp acquired a new stake in Strategic Education in the second quarter valued at $16,778,000. 93.27% of the stock is owned by institutional investors and hedge funds.

Strategic Education Stock Performance

NASDAQ STRA opened at $82.39 on Friday. Strategic Education has a one year low of $69.70 and a one year high of $89.73. The company's 50 day moving average price is $81.40 and its 200 day moving average price is $80.31. The firm has a market capitalization of $1.83 billion, a price-to-earnings ratio of 13.73, a PEG ratio of 0.76 and a beta of 0.47.

Strategic Education (NASDAQ:STRA - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The health services provider reported $1.76 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.80 by ($0.04). Strategic Education had a return on equity of 8.98% and a net margin of 10.46%. The business had revenue of $321.60 million for the quarter, compared to analysts' expectations of $327.55 million. During the same quarter in the prior year, the firm earned $1.54 earnings per share. Strategic Education's quarterly revenue was up 4.9% compared to the same quarter last year. Sell-side analysts forecast that Strategic Education will post 7.23 EPS for the current fiscal year.

Strategic Education Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, September 14th. Shareholders of record on Friday, September 4th were given a $0.60 dividend. The ex-dividend date of this dividend was Friday, September 4th. This represents a $2.40 annualized dividend and a yield of 2.9%. Strategic Education's dividend payout ratio (DPR) is 40.00%.

About Strategic Education

Strategic Education, Inc is a postsecondary education company that provides career-focused academic programs and education services in the United States. The company operates primarily through Strayer University and Capella University, serving working adults and other students through online learning, physical campuses and flexible academic formats.

Strayer University offers undergraduate and graduate degree programs, professional certificates and other career-oriented courses in areas such as business, information technology, healthcare, criminal justice and education.

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