Lightrock Netherlands B.V. Reduces Stock Position in Strategic Education Inc. $STRA

Key Points

• Lightrock Netherlands B.V. cut its stake in Strategic Education by 42.5% in Q1, selling 103,856 shares and leaving it with 140,363 shares worth about $11.6 million.
• Institutional ownership remains high at 93.27%, with several funds increasing positions even as Lightrock reduced its holdings.
• Strategic Education’s latest results were mixed: quarterly EPS of $1.42 and revenue of $305.93 million both missed estimates, while the company also continued its dividend with a $0.60 per-share payout.

Lightrock Netherlands B.V. lessened its stake in Strategic Education Inc. (NASDAQ:STRA - Free Report) by 42.5% in the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 140,363 shares of the health services provider's stock after selling 103,856 shares during the quarter. Strategic Education comprises about 1.2% of Lightrock Netherlands B.V.'s holdings, making the stock its 22nd largest holding. Lightrock Netherlands B.V. owned 0.62% of Strategic Education worth $11,645,000 as of its most recent filing with the SEC.

Other institutional investors have also recently added to or reduced their stakes in the company. Fifth Third Bancorp grew its holdings in Strategic Education by 5,873.6% in the 1st quarter. Fifth Third Bancorp now owns 12,425 shares of the health services provider's stock valued at $1,031,000 after buying an additional 12,217 shares in the last quarter. Hsbc Holdings PLC raised its holdings in shares of Strategic Education by 36.0% during the 1st quarter. Hsbc Holdings PLC now owns 16,783 shares of the health services provider's stock worth $1,393,000 after acquiring an additional 4,440 shares during the period. Stephens Inc. AR purchased a new position in shares of Strategic Education during the 1st quarter worth $435,000. Y Intercept Hong Kong Ltd boosted its position in shares of Strategic Education by 568.8% during the 1st quarter. Y Intercept Hong Kong Ltd now owns 36,765 shares of the health services provider's stock valued at $3,050,000 after acquiring an additional 31,268 shares during the last quarter. Finally, Janney Montgomery Scott LLC acquired a new position in shares of Strategic Education during the 1st quarter valued at about $218,000. Hedge funds and other institutional investors own 93.27% of the company's stock.

Insider Activity at Strategic Education

In related news, insider Christa Hokenson sold 2,000 shares of Strategic Education stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $80.00, for a total value of $160,000.00. Following the completion of the sale, the insider owned 65,195 shares in the company, valued at approximately $5,215,600. This trade represents a 2.98% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Michael Thawley purchased 665 shares of the stock in a transaction dated Friday, April 24th. The shares were purchased at an average price of $72.71 per share, with a total value of $48,352.15. Following the completion of the transaction, the director owned 12,154 shares of the company's stock, valued at approximately $883,717.34. This trade represents a 5.79% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 3.60% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on STRA shares. Truist Financial cut their price objective on shares of Strategic Education from $85.00 to $80.00 and set a "hold" rating for the company in a research report on Monday, April 27th. Weiss Ratings reiterated a "hold (c)" rating on shares of Strategic Education in a report on Tuesday, April 21st. BMO Capital Markets increased their price target on shares of Strategic Education from $86.00 to $91.00 and gave the company an "outperform" rating in a research note on Monday, July 6th. Wall Street Zen downgraded shares of Strategic Education from a "buy" rating to a "hold" rating in a report on Wednesday, June 24th. Finally, Zacks Research lowered shares of Strategic Education from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, June 2nd. Two investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $88.67.

Strategic Education Price Performance

NASDAQ STRA opened at $77.69 on Friday. The firm's 50-day moving average is $79.09 and its two-hundred day moving average is $80.41. Strategic Education Inc. has a 12 month low of $69.70 and a 12 month high of $87.38. The stock has a market capitalization of $1.76 billion, a P/E ratio of 13.73, a PEG ratio of 0.70 and a beta of 0.50.

Strategic Education (NASDAQ:STRA - Get Free Report) last announced its quarterly earnings results on Thursday, April 23rd. The health services provider reported $1.42 earnings per share for the quarter, missing analysts' consensus estimates of $1.51 by ($0.09). The company had revenue of $305.93 million for the quarter, compared to analyst estimates of $329.81 million. Strategic Education had a net margin of 10.21% and a return on equity of 8.78%. Strategic Education's revenue was up .8% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.30 earnings per share. As a group, analysts anticipate that Strategic Education Inc. will post 7.2 EPS for the current year.

Strategic Education Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 1st. Investors of record on Friday, May 22nd were given a dividend of $0.60 per share. The ex-dividend date of this dividend was Friday, May 22nd. This represents a $2.40 dividend on an annualized basis and a dividend yield of 3.1%. Strategic Education's dividend payout ratio (DPR) is presently 42.40%.

Strategic Education Company Profile

Strategic Education, Inc is a publicly traded higher education services holding company headquartered in Herndon, Virginia. Through its primary operating subsidiaries, Strayer University and Capella University, the company delivers degree programs and professional development opportunities to working adults. Its offerings span undergraduate and graduate degrees, certificates, continuing education, and workforce training in fields such as business, technology, health services, education, and public administration.

Strayer University, with a network of physical campuses across the United States complemented by an online platform, provides associate’s through doctoral degrees designed to accommodate non-traditional students.

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