Jupiter Topco LLC Makes New $199.72 Million Investment in Stride, Inc. $LRN

Key Points

• Jupiter Topco LLC acquired 2.32 million Stride shares worth approximately $199.7 million, giving it a 5.57% stake in the company. Institutional investors collectively own 98.24% of Stride.
• Stride exceeded quarterly expectations, reporting $2.12 in EPS versus the $1.64 consensus estimate and revenue of $636.1 million, although revenue declined 2.7% year over year.
• Analyst sentiment remains cautious: Stride has a consensus “Hold” rating, with five analysts at Hold and two at Buy, and an average price target of $109.75 versus the stock’s reported $84.81 price.

Jupiter Topco LLC bought a new position in shares of Stride, Inc. (NYSE:LRN - Free Report) in the 2nd quarter, according to its most recent 13F filing with the SEC. The fund bought 2,315,672 shares of the company's stock, valued at approximately $199,715,000. Jupiter Topco LLC owned 5.57% of Stride at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently modified their holdings of the stock. Newbridge Financial Services Group Inc. acquired a new stake in Stride in the second quarter worth $25,000. Northwestern Mutual Wealth Management Co. grew its holdings in shares of Stride by 78.7% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 193 shares of the company's stock valued at $28,000 after buying an additional 85 shares during the period. Leonteq Securities AG acquired a new position in shares of Stride in the 4th quarter valued at $35,000. EverSource Wealth Advisors LLC increased its position in shares of Stride by 108.7% in the 1st quarter. EverSource Wealth Advisors LLC now owns 432 shares of the company's stock valued at $38,000 after buying an additional 225 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd increased its position in shares of Stride by 482.1% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 617 shares of the company's stock valued at $40,000 after buying an additional 511 shares in the last quarter. 98.24% of the stock is owned by institutional investors.

Stride Price Performance

LRN stock opened at $84.81 on Thursday. The stock has a 50-day moving average price of $85.67 and a two-hundred day moving average price of $88.36. Stride, Inc. has a 1 year low of $60.61 and a 1 year high of $171.17. The stock has a market cap of $3.52 billion, a PE ratio of 11.78, a price-to-earnings-growth ratio of 0.50 and a beta of 0.11. The company has a current ratio of 5.94, a quick ratio of 5.81 and a debt-to-equity ratio of 0.29.

Stride (NYSE:LRN - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The company reported $2.12 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.64 by $0.48. Stride had a net margin of 13.43% and a return on equity of 23.49%. The firm had revenue of $636.06 million for the quarter, compared to analyst estimates of $626.52 million. During the same period in the previous year, the business earned $2.29 EPS. The company's revenue was down 2.7% compared to the same quarter last year. Equities analysts forecast that Stride, Inc. will post 8.62 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on LRN. William Blair lowered Stride from an "outperform" rating to a "market perform" rating in a report on Thursday, July 30th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Stride in a research report on Wednesday, July 8th. Finally, BMO Capital Markets reiterated a "market perform" rating on shares of Stride in a report on Monday, June 15th. Two research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Stride has a consensus rating of "Hold" and a consensus price target of $109.75.

About Stride

Stride, Inc NYSE: LRN is a technology-driven education company that designs and delivers online learning solutions for students and adult learners. Through long-term partnerships with state-authorized public school districts, Stride operates virtual academies that serve K-12 students across the United States. The company's blended-learning model combines digital curriculum, live teaching support and data analytics to personalize instruction and monitor student progress.

In addition to its K-12 offerings, Stride provides a portfolio of career and workforce readiness programs under its Stride Career Prep division.

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